Same store sales at Tim Hortons owner slip last quarter

The owner of Tim Hortons and Burger King is reporting flat sales at its established locations in the first quarter but a nine per cent increase in revenue, which was above analyst estimates.

Restaurant Brands International Inc. says comparable sales at locations open at least a year were down one-tenth of a per cent at both chains, after adjusting for currency fluctuations.

The Oakville, Ont.-based company says its net income, reported in U.S. dollars, was also flat compared with a year ago, at $50.2 million US or 21 cents per share.

However, RBI's overall revenue increased by $82.1 million to about US$1 billion — about three-quarters of it from Tim Hortons — and adjusted earnings rose 20 per cent to $170.6 million, or 36 cents per share.

The adjusted earnings were two cents above estimates compiled by Thomson Reuters, while revenue was about $10 million above the estimate of $990.27 million US.

The quarterly financial report follows RBI's acquisition of Popeyes Louisiana Kitchen, Inc. at the end of March, too late in the quarter to have any meaningful impact.