Burger King Owner Misses Estimates After Slower Growth And Currency Impacts

Restaurant Brands International, the owner of Burger King, Tim Hortons and Popeyes chains, ended the third quarter with below-expected sales.

Revenue for the period ended in September rose 6.4% from a year earlier to $1.84 billion, the company said Friday. Analysts expected $1.87 billion, CNBC said, citing LSEG data.

Adjusted profit fell 5.3% to $413 million, or $0.90 per share, beating estimates of $0.88.

The Toronto-based company said Tim Hortons, which is responsible for about 60% of revenue, had a negative impact of currency fluctuations.

Burger King's same-store sales increased 7.2%, below the 8.6% estimate by StreetAccount, CNBC said. A year earlier, the same-store sales gain was close to 10%.

Restaurant Brands said in the earnings statement that the conflict in the Middle East could affect inflation, currency volatility and interest rates, causing "an adverse impact on our business and results of operations if we and our franchisees are not able to adjust prices sufficiently to offset the effect of cost increases without negatively impacting consumer demand."

The Canadian company's results contrast with earnings of McDonald's, which said Monday that quarterly profit rose 17%, beating estimates, after menu price increases.