Oct 29 (Reuters) - Restaurant Brands International , beat Wall Street estimates for third-quarter comparable sales on Thursday, as value meals and new menu items drew more diners to its Burger King outlets in the US.
Value deals such as Whopper Wednesday, "2 for $5" and "3 for $7," alongside marketing campaigns and new drinks like matcha, have attracted diners who might otherwise eat at home, helping the company buck an industry-wide slowdown that has hurt sales at rivals including McDonald's and Wendy's.
Comparable sales at Burger King's US restaurants rose 8.4% in the quarter ended September 30, compared with a 3.2% rise a year earlier. The company's overall comparable sales of 3.8% beat analysts' estimates of 3.25%, according to data compiled by LSEG.
Burrito chain owner Chipotle Mexican Grill also beat third-quarter comparable sales estimates, helped by marketing efforts and limited-time menu items.
Burger King is investing up to $700 million through 2028 under its multi-year "Reclaim the Flame" plan to boost sales and franchisee profitability. Up to $550 million of that goes to "Royal Reset," a program of remodels, restaurant technology and kitchen equipment.
As of September 30, the company had funded $198 million of it.
Meanwhile, quarterly comparable sales at its Tim Hortons chain rose 1.8% in Canada, up from 0.1% in the second quarter. Comparable sales in its Popeyes Louisiana Kitchen business fell 2.2%, after declining 5.2% in the second quarter.
The company has been raising menu prices in the low-single-digit percentages to offset higher costs for commodities such as beef, it had said in its second-quarter earnings call.
Adjusted earnings per share for the third quarter were $1.10, up from $1.03 a year earlier. Analysts had expected $1.09 per share.
Third-quarter revenue of $2.53 billion came in slightly below analysts' estimates of $2.54 billion.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Jonathan Ananda
Source: Reuters