Mixed balance of Burger King's parent company

Unprofitable restaurants of the RBI brands Burger King, Tim Hortons and Popeyes could soon be closed.
imago images / Dean Pictures
Unprofitable restaurants of the RBI brands Burger King, Tim Hortons and Popeyes could soon be closed.

Burger King's parent company, Popeyes and Tim Hortons reported a 25 percent decline in sales for the second quarter (ending June 30).

While the Popeyes chicken chain achieved almost 25 percent higher like-for-like sales, the negative figures for Burger King (minus 13 percent) and Tim Hortons (minus 29 percent) pulled the Group's overall result down.

Burger King's System Sales fell by 25.2 percent in the second quarter compared to the same period of the previous year. Tim Hortons' System Sales declined by 33.4 percent compared to the same quarter of the previous year. Popeye's system-wide sales grew by 24 percent.

"The Covid 19 pandemic has presented a number of unprecedented challenges, but our proactive and coordinated response around the world has helped to significantly improve performance since March," said CEO Jose Cil in a corporate statement.

"During this crisis, the strength of our drive-thru, digital and delivery channels has been a particularly important differentiator, as guests have expected a combination of security, convenience, quality and value that few can offer. It has been encouraging to see that our investments in digital channels have resulted in significant revenue growth in the quarter and we are pleased to report that in our home markets, digital brand sales have grown by more than 120 percent year-on-year and more than 30 percent quarter-on-quarter".

According to the online portal Restaurant Business, several hundred restaurants of the RBI Group could be closed in the wake of the Corona Pandemic. However, the company expects to eventually replace the weaker restaurants with new locations in better areas. RBI is working closely with the franchisees to identify unprofitable locations.

About RBI
Restaurant Brands International Inc. is one of the world's largest fast food companies with annual system-wide sales of approximately $32 billion and over 27,000 restaurants in more than 100 countries and territories.

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