Aug 6 (Reuters) - Restaurant Brands International beat overall same-store sales growth expectations for the second quarter, helped by resilient demand at its Burger King chain in the U.S.
Fast-food chains have increasingly leaned on value menus, bundled meal deals and price-focused promotions to attract customers squeezed by persistent inflation and higher living costs amid geopolitical uncertainty.
Burger King's U.S. business benefited from value offers, including its "2 for $5" and "3 for $7" meal deals, which helped draw diners who had pulled back on discretionary spending.
Restaurant Brands has also been investing heavily in Burger King over the last few years to revive sales through restaurant remodels and marketing initiatives.
Comparable sales at Burger King U.S. grew 8.5% for the quarter ended June 30, compared with a 1.5% rise last year. Analysts, on average, expected the segment to report comparable sales growth of about 3.5%.
The Toronto-based company has also emphasized value across its other brands. Tim Hortons, which makes up about 41% of the company's operating income, has been offering breakfast sandwich or wrap-and-coffee deals for C$3, while loaded wrap meals are priced at C$8.99.
Tim Hortons, which has around 3,900 restaurants in Canada as of February 2026, reported a 0.1% rise in its comparable sales in the country for the quarter, down from 3.6% reported the prior year. Analysts expected a 1.5% increase.
U.S.-listed shares of the company were down about 3% in early trading.
Restaurant Brands also faces cost pressures due to increases in commodity prices, including beef, which accounts for roughly a quarter of the company's food basket.
Restaurant operators have so far reported mixed results, with McDonald's earlier this week missing quarterly U.S. sales growth expectations, citing execution challenges that weakened the impact of its value offerings.
On the other hand, Yum Brands beat profit and comparable sales growth estimates last week, despite dealing with a cyclosporiasis outbreak linked to its Taco Bell unit.
Restaurant Brands reported global comparable sales growth of 3.8% in the quarter ended June 30, above analysts' expectations of about 3.0%, according to data compiled by LSEG.
The company reported quarterly revenue of $2.52 billion, compared with estimates of $2.53 billion. Adjusted diluted earnings rose to $1.07 per share from 94 cents a year ago.
Reporting by Sanskriti Shekhar in Bengaluru; Editing by Leroy Leo
Source: Reuters