Restaurant Brands International's earnings soar past expectations, driven by robust international Burger King sales growth. In the fourth quarter, the company reported net income of $113 million, or 34 cents per share, a slight dip from the previous year's $259 million, or 79 cents per share. However, excluding certain expenses, adjusted earnings reached 96 cents per share, surpassing the anticipated 95 cents. Revenue surged 7.4% to $2.47 billion, with organic revenue up 6.5% after accounting for currency fluctuations and sales from restaurants in the process of refranchising. The company's same-store sales increased 3.1%, with a notable 6.1% rise outside the U.S. and Canada, and a 5.8% growth in international Burger King restaurants, outpacing the projected 3.7%. This success is attributed to the joint venture with CPE for Burger King China, which closed in January, giving CPE an 83% stake. Canadian coffee chain Tim Hortons, contributing 46% of overall revenue, reported a 2.9% same-store sales growth, slightly lower than the expected 3.8%. Burger King's overall same-store sales grew 2.7%, exceeding estimates. Conversely, Popeyes, the laggard, saw a 4.8% decline in same-store sales, more pronounced than the 2.4% decrease predicted. Yet, Restaurant Brands is optimistic, having appointed Burger King veteran Peter Perdue and Popeyes veteran Matt Rubin to lead U.S. and Canadian Popeyes operations. The company plans to unveil further growth strategies at its investor day in Miami on February 26.
