Restaurant Brands International (RBI), the parent company of Burger King, reported strong fourth quarter earnings, surpassing analysts’ expectations.
Part of the growth has to do with Burger King, which rose 8% in system-wide sales growth, contributing to a 5.4% increase in year-over-year system wide sales to $44.5 billion.
Fourth quarter sales grew by 5.6%, according to its earnings report.
The RBI company achieved an adjusted earnings per share of $0.81 on revenue of $2.3 billion, exceeding the anticipated $0.50 EPS and $2.29 billion in revenue.
CEO Josh Kobza said he is “proud of our performance this year.”
He said RBI will focus on “thoughtful marketing, operational improvements, and modern image to enhance the guest experience, drive franchisee profitability, and deliver long-term growth for our brands and shareholders.”
Global comparable sales increased by 2.5%, outperforming the expected 1.59% growth.
And income from operations surged 17.9%, reaching $2.4 billion, while adjusted operating income climbed 9%.
RBI also owns Tim Hortons and Popeyes, which the latter contributed 47.5% in system-wide sales growth.
Burger King plans to execute its “Reclaim the Flame” plan, a $700 million investment through 2028 to expedite growth and franchisee profitability.
Following the earnings report, RBI’s stock rose by 3%.
McDonald’s, Burger King’s rival, reported a decrease in its earnings report sales by 1.4% in the U.S. as customers spent less in Q4.
McDonald’s plans to expand its chicken offerings after the success of the Chicken Big Mac in October of last year.
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