(Reuters) -Restaurant Brands reported third-quarter comparable sales above estimates on Thursday, helped by resilient traffic at the its restaurant chains Burger King and Tim Hortons.
Menu updates and a focus on value pricing have helped the Toronto-based restaurant chain operator sustain demand at its outlets, offsetting broader macro pressures that have rattled consumer confidence recently in the U.S.
Tim Horton, the company’s major revenue contributor, recorded strong demand as it is less exposed to the pressures of macroeconomic uncertainty in the U.S. It operates only around 11% of its outlets in the country.
The company’s Burger King chain also enjoyed traffic growth, as its value meals offerings attracted cost-conscious diners.
The results signal how consumers are gravitating towards cheaper meals. Earlier this month, Domino’s Pizza’s posted upbeat quarterly results driven by promotions.
Meanwhile, Chipotle Mexican Grill cut its annual sales forecast for the third time this year on Wednesday, warning that consumer spending on dining out is likely to remain under pressure through early 2026.
Restaurant Brands’ third-quarter same-store sales grew 4% in the third quarter, compared with analysts’ estimates of 3.2% growth, according to data compiled by LSEG. It had posted a 0.3% growth a year ago.
The company reported quarterly revenue of $2.45 billion, compared with analysts’ average expectation of $2.4 billion.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli)
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