Feb 12 (Reuters) - Restaurant Brands reported fourth-quarter sales above estimates on Thursday, driven by strength in its international Burger King outlets, even as it faces stiff competition for its value menus in the United States.
Fast-food chains have prioritized affordability, offering certain items at lower prices to attract consumers who were turning away from dining out due to high menu prices over the last two years.
Industry leader McDonald's topped quarterly global comparable sales estimates as it also ramped up marketing to drive demand.
Burger King in the U.S. has run packaged offers on its menu, priced at $5 for two items and $7 for three, and also launched limited offers such as the $4.99 cheeseburger value meal last month.
Same-store sales at Burger King U.S. rose 2.6% for the quarter, but missed estimates of a 3.5% rise.
The company's U.S.-listed shares were down about 3% in premarket trading.
However, Burger King's international segment saw comparable sales growth accelerate to 5.8% from 4.9% a year ago. The segment is dominated by outlets in Western Europe and Australia, according to a TD Cowen note.
Tim Hortons, which has over 4000 stores in Canada and accounts for roughly 42% of the company's operating profit, reported a 2.9% rise in quarterly same-store sales, but still fell short of estimates of a 3.7% rise.
Restaurant Brands' smaller Popeyes chain reported a 4.9% fall in quarterly sales as the chicken outlets, which offer pricier items than KFC, failed to attract consumers.
Another relatively more expensive chain, Chipotle Mexican Grill, also forecast weak annual sales earlier this month, indicating customer preference for value-based meals amid persistent inflation and economic uncertainty.
Restaurant Brands posted an adjusted profit of 96 cents per share for the quarter, topping estimates of 95 cents per share, according to data compiled by LSEG.
The company reported quarterly same-store sales growth of 3.1%, compared with estimates of a 2.73% rise.
Reporting by Juveria Tabassum and Sanskriti Shekhar in Bengaluru; Editing by Leroy Leo
Source: Reuters