Burger King, Tim Hortons Help Propel Parent Company’s Growth

Bloomberg
02-12

(Bloomberg) -- Burger King’s North America business expanded in the fourth quarter, reversing two quarters of declines.

The burger chain, which is in the third year of a project to remodel locations, boost advertising and reduce customer complaints, said same-store sales in the US and Canada grew 1.1%. The results surpassed the average estimate of analysts polled by Bloomberg.

Burger King’s parent company, Restaurant Brands International Inc., also posted same-store sales that beat estimates. The growth was led by the company’s international division and by Tim Hortons’ North America business, with its Canada-heavy footprint. Firehouse Subs eked out a gain in the US and Canada, while Popeyes declined slightly.

Restaurant Brands has committed more than $2 billion to revitalize Burger King, which in recent years had fallen behind competitors such as Wendy’s Co. after historically trailing McDonald’s Corp, the top-selling burger chain. The company has focused on updating Burger King’s restaurants, projecting that 85% to 90% of locations will be revamped by 2028. 

In the fourth quarter, the brand tried to bring customers in with limited-time offers such as a ranch cup big enough to dip a burger and by selling 1 million Whopper sandwiches for $1. Results surpassed those of McDonald’s in the US, where sales dipped due in part to an E. coli outbreak that spooked many diners. Burger King’s US and Canada business is among Restaurant Brands’ largest by sales behind the international division.

Earnings were 81 cents per share excluding some items, slightly higher than expectations. Revenue was $2.3 billion. The company’s adjusted operating income grew 9% in 2024, outpacing an average annual target of 8% the company set last February.

The US-listed shares rose 1.8% at 6:39 a.m. in Wednesday premarket trading in New York. Restaurant Brands’ US-listed shares fell 13% over the last 12 months through Tuesday’s close, while the S&P 500 Index rose 21%.

(Adds premarket shares.)

©2025 Bloomberg L.P.

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