Tim Hortons parent Restaurant Brands misses sales estimates on muted demand

Restaurant Brands missed estimates for quarterly revenue on Tuesday due to weak demand across key businesses such as Tim Hortons, Burger King and international markets including China and the Middle East.

The Toronto-based company’s U.S.-listed shares were down five per cent before the bell.

Consumers are relying on cheaper, home-cooked meals instead of eating out as fast food prices have risen over the past year, hurting traffic at Burger King, McDonald’s and others in the restaurant industry.

Steady demand for cold drinks, donuts and breakfast bundles at Tim Hortons drove quarterly same-store sales growth of 2.3 per cent at the coffee chain, but Burger King declined 0.7 per cent, compared with a 6.6 per cent rise last year.

The company reported net income of US$357 million, down from US$365 million in the prior-year period.

Total revenues for the three months ended September 30 came in at US$2.29 billion, below analysts’ expectations of US$2.31 billion, according to data compiled by LSEG.

(Reporting by Savyata Mishra in Bengaluru; Editing by Devika Syamnath)