Burger King/Tim Hortons Parent Posts Quarterly Loss
(Reuters) – Restaurant Brands International Inc (QSR.TO), formed out of Burger King’s takeover of Canadian coffee and doughnut chain Tim Hortons last year, reported a net loss in its first quarterly results after the merger.
U.S. fast-food chain Burger King bought Tim Hortons for C$12.64 billion last August, creating the world’s third-largest fast-food restaurant group.
Investors and industry experts say Tim Hortons’ coffee products can help Burger King chip away at McDonald’s Corp’s (MCD.N) dominance in the quick-serve breakfast market, while Burger King can help Tim Hortons expand in the United States and abroad.
Burger King and Tim Hortons are being managed as distinct and separate brands under the parent company.
Comparable sales at Tim Hortons grew 4.1 percent, while comparable sales at Burger King increased 3 percent in the quarter, Oakville, Ontario-based Restaurant Brands said.
Restaurant Brands, which has more than 18,000 restaurants in 100 countries, posted a net loss attributable to shareholders of $514.2 million, or $2.52 per share, for the fourth quarter ended Dec 31.
The company reported total revenue of $416.3 million in the quarter.
Up to Friday’s close, Restaurant Brands’ stock had risen about 14 percent since its listing on the Toronto Stock Exchange.
(Reporting by Solarina Ho in Toronto and Sneha Banerjee in Bengaluru; Editing by Simon Jennings)
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