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Consumers are increasingly venturing out to diners, encouraged
by higher rate of vaccinations and easing COVID-19 curbs, after
the nearly two-year long health crisis prompted restaurant
closures and dine-in restrictions that kept people away from
their favorite fast-food chains.
As more people ordered their comfort foods online during the
pandemic, Restaurant Brands, like its peers, has been ramping up
investments in its e-commerce business. The company's
Cajun-inspired Popeyes chain rolled out its first ever rewards
program last year.
Restaurant Brands' global digital sales rose more than 65% to
$10 billion in 2021 on the back of these efforts to boost the
e-commerce business.
Demand for breakfast items has also rebounded as more people
resume working from their offices and grab their sandwiches and
coffees on their way to work, benefiting coffeehouse chains such
as Tim Hortons and Starbucks Corp.
Tim Hortons, which typically accounts for over half of
Restaurant Brands' revenue, posted an 11.3% increase in
comparable sales in Canada, ahead of estimates of a 10.4%
growth.
Same-store sales at Burger King in the United States rose nearly
2%, also above expectations of a marginal decline.
However, the company's Popeyes chain, known for its fried
chicken sandwiches, missed estimates for U.S. comparable sales
growth, as it grapples with stiff competition from rivals such
as McDonald's Corp and Yum Brands Inc's KFC, which have launched
similar menu items.
Restaurant Brands' total revenue rose about 14% to $1.55 billion
in the fourth quarter ended Dec. 31, beating estimates of $1.52
billion, according to IBES data from Refinitiv.
Excluding items, the Toronto, Ontario-based company earned 74
cents per share, topping estimates of 69 cents.
(Reporting by Deborah Sophia in Bengaluru; Editing by Krishna
Chandra Eluri)
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