Restaurant Brands International Inc (NYSE:QSR) stock fell 2% (As on August 9, 11:24:20 AM UTC-4, Source: Google Finance) after the company reported quarterly revenue that beat analysts’ expectations, fueled by better-than-expected sales at Tim Hortons and the company’s international restaurants. Restaurant Brands reported second-quarter net income of $399 million, up from $351 million, a year earlier. Out of Restaurant Brands’ four chains, Tim Hortons performed the best, with same-store sales growth of 4.6%. Tims’ efforts to attract more afternoon customers, like launching flatbread pizzas, have boosted sales. The chain has also been trying to expand beyond hot coffee by adding more cold coffee drinks and releasing Infusr energy drinks. Popeyes’ same-store sales rose 0.5%. Its new boneless wings have been a hit with existing customers, but the chain is hoping to attract new customers to the brand with the menu item and the right advertising strategy. Both Burger King and Firehouse Subs reported same-store sales declines of 0.1% for the quarter.

QSR in the second quarter of FY 24 has reported the adjusted earnings per share of 86 cents, missing the analysts’ estimates for the adjusted earnings per share of 87 cents, based on a survey of analysts by LSEG. The company had reported the adjusted revenue growth of 17 percent to $2.08 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $2.02 billion. This is boosted by recent acquisitions of Burger King restaurants in the U.S. The company’s same-store sales increased 1.9%. Restaurant Brands’ international locations saw same-store sales growth of 2.6%. Executives said strong sales in Brazil, Australia and Japan helped offset weakness in China and the Middle East. System-wide sales increased 5.0% year-over-year. Income from Operations of $663 million versus $554 million in the prior year. Adjusted Operating Income was of $632 million increased 9.3% organically versus the prior year.

For the second half of the year, Restaurant Brands is expecting same-store sales growth of roughly 2%.

Two days before the quarter ended, Restaurant Brands completed its acquisition of Popeyes China, which will be included in its results next quarter. The company’s new Restaurant Holdings segment includes the performance of Popeyes China and the restaurants it acquired from Carrols, which was Burger King’s largest U.S. franchisee before Restaurant Brands bought it. On May 16, 2024, the company had completed the acquisition of Carrols Restaurant Group Inc.