Tim Hortons parent beats quarterly estimates on resilient restaurant traffic

Signage for Tim Hortons is seen outside a Tim Hortons restaurant in Toronto. THE CANADIAN PRESS/Cole Burston

Restaurant Brands beats quarterly sales and profit estimates on Thursday, helped by resilient traffic at its Burger King and Tim Hortons chains.

Menu updates and a focus on value pricing helped the Toronto-based restaurant chain operator offset broader macro pressures that have rattled consumer confidence recently in the U.S.

Tim Hortons, the company’s biggest business, recorded strong demand as it is less exposed to the economic pressures in the U.S. It operates only around 11 per cent of its outlets in the country.

Restaurant Brands’ other big business, Burger King, also enjoyed traffic growth, driven by its value offerings, including its ‘2 for $5’ and ‘3 for $7’ deals.

“Burger King is serving up value at a time when consumers are seeking deals,” said eMarketer analyst Zak Stambor.

Consumers gravitating towards cheaper meals aided Shake Shack’s SHAK.N upbeat quarterly results on Thursday, and Domino’s Pizza’s DPZ.O better-than-expected earnings earlier this month.

Meanwhile, Chipotle Mexican Grill cut its annual sales forecast on Wednesday, warning that consumer spending on dining out is likely to remain under pressure through early 2026.

Multiple brands and an extended global footprint helped Restaurant Brands sustain demand, compared to Chipotle, Thomas Curtis, president of Burger King US and Canada, told Reuters.

Elevated beef costs are pressuring Burger King’s U.S. business margin, but it is temporary as prices normalize, CFO Sami Siddiqui said in a post-earnings call.

U.S.-listed shares of the company were up 2 per cent in early trading.

Restaurant Brands’ third-quarter same-store sales grew 4 per cent, compared to a 0.3 per cent growth last year. Analysts expected a 3.2 per cent growth, according to data compiled by LSEG.

Quarterly revenue of $2.45 billion, surpassed analysts’ average expectation of $2.4 billion, while adjusted profit per share of $1.03 beat estimates of $1.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli)