The parent company of Tim Hortons is vowing to regroup after the coffee-and-doughnut chain’s same-store sales fell 4.3% in the fourth quarter.
The chief executive officer of Restaurant Brands International Inc. (TSX:QSR) promised investors and analysts Monday that the popular Canadian chain would be put under the microscope following disappointing results in the fourth quarter. The situation was more bleak at Tim Hortons stores open only for one year, with sales at those outlets falling 4.6%.
“At Tim Hortons, our performance did not reflect the incredible power of our brand and it is clear that we have a large opportunity to refocus on our founding values and what has made us famous with our guests over the years, which will be the basis for our plan in 2020,” said Restaurant Brands CEO Jose Cil in a news release.
Tim Hortons was the lone blemish in an otherwise impressive quarter for Restaurant Brands, with sales growth at its Burger King and Popeyes Louisiana Kitchen units. Popeye’s performance was particularly impressive as same-store sales surged 34.4% as a result of a popular chicken sandwich.
Overall, Restaurant Brands’ quarterly adjusted profit rose to $0.75 U.S. per share from $0.68 U.S. a year earlier. Analysts were expecting $0.73 U.S. in adjusted earnings per share. Restaurant Brands also announced Monday that its quarterly dividend will rise two cents to $0.52 U.S. per share.
QSR moved into mid-morning Monday up $2.58, or 3.1%, to $87.30