Restaurant Brands International said on Thursday it will close hundreds more outlets this year as the owner of Burger King and Tim Hortons looks to shore up capital to weather a sales hit from the COVID-19 pandemic.
Sales at Burger King and Tim Hortons have been hammered in recent months due to coronavirus-led restrictions on indoor dining and a drop in demand for on-the-go breakfast and coffee, with the company reporting an over 25% fall in overall second-quarter revenue.
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Canada-focused Tim Hortons has been especially hard hit due to the country’s slower pace of reopening, said Chief Executive Officer Jose Cil.
“Canada has generally followed a measured pace of reopening, which has helped effectively contain the virus, but has led to a slower pickup in activity and re-establishment of routines,” Cil told analysts.
Restaurant Brands expects to end 2020 with roughly the same number of outlets as last year – a little over 27,000 – as the company continues to open new restaurants as part of its annual plan. It had net restaurant growth of over 5% in each of the last three years.
Restaurant Brands‘ shares fell 2% in morning trading.
Still, growth at Popeyes has been surging, with the company cashing-in on its massively popular fried chicken sandwiches to expand into markets such as China.
Comparable sales at Cajun-inspired chain rose nearly 25% in the second quarter and come at a time when McDonald’s Corp , Starbucks Corp and Dunkin Brands have all seen a drop.
On an adjusted basis, the company earned 33 cents per share in the second quarter ended June 30, beating Wall Street expectations of 31 cents, according to IBES data from Refinitiv.
© 2020 Reuters
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2020-08-06 16:31:55Z
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