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Burger King/Tim Hortons owner's profit beats estimates as costs fall

Restaurant Brands International Inc , formed last year out of Burger King's takeover of Canadian coffee chain Tim Hortons, reported a better-than-expected quarterly profit, helped by lower costs and new menu items.

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Reuters file photos.

Restaurant Brands International Inc , formed last year out of Burger King's takeover of Canadian coffee chain Tim Hortons, reported a better-than-expected quarterly profit, helped by lower costs and new menu items.

Tim Hortons' comparable sales increased 5.3 percent in the third quarter, helped by the launch of new breakfast items, lunch wraps and continued demand for beverages.

Burger King's comparable sales increased 6.2 percent, helped by new menu items such as Fiery Chicken Fries and the Extra Long Jalapeño Cheeseburger. Burger King opened 141 new restaurants during the three months ended Sept. 30.

The company, posting third-quarter results for the first time, said total operating costs and expenses declined about 9 percent to $675.7 million.

Net profit attributable to shareholders soared to $49.6 million, or 24 cents per share, in the third quarter from $9.6 million, or 5 cents per share, in the second quarter.

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On an adjusted basis, Restaurant Brands earned 34 cents per share, beating analysts average estimate of 28 cents per share, according to Thomson Reuters I/B/E/S.

The Oakville, Ontario-based company's quarterly revenue fell 2 percent to $1.02 billion, slightly more than analysts' estimate of $1.04 billion.

Restaurant Brands' stock closed at C$50.17 on Monday, up a little more than 10 percent so far this year. 

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