Burger King’s Sales Miss, Staff Crunch Eat Into Restaurant Brands’ Revenue

6 months ago 100

The Burger King institution  logo stands connected  a motion   extracurricular  a edifice  successful  Bretigny-sur-Orge, adjacent   Paris, France connected  July 30, 2020. (Benoit Tessier/Reuters)

The Burger King institution logo stands connected a motion extracurricular a edifice successful Bretigny-sur-Orge, adjacent Paris, France connected July 30, 2020. (Benoit Tessier/Reuters)

Burger King and Tim Hortons are struggling with a staffing crunch and the Delta variant keeping coffee-loving bureau workers astatine home, causing genitor Restaurant Brands International Inc. to miss estimates for quarterly gross connected Monday.

Restaurant Brands besides faced stiff contention from McDonald’s Corp. and Wendy’s Co. doubling down connected selling and launching caller paper items.

“COVID-19 contributed to labour challenges, which successful immoderate regions resulted successful reduced operating hours and work modes astatine prime restaurants arsenic good arsenic proviso concatenation pressures,” Restaurant Brands said successful a statement.

Burger King, similar astir rivals, has struggled to guarantee its restaurants person capable staff, with its recently launched hand-breaded chickenhearted sandwich besides considered a labor-intensive product.

Wendy’s launched a caller ‘Big Bacon Cheddar Cheeseburger’ and reformulated its gallic fries to support them crispy for longer earlier this year, portion McDonald’s collaborated with lad set BTS and rapper Saweetie to gully customers.

Same-store sales astatine the Tim Hortons java chain, the biggest gross shaper for Restaurant Brands, jumped 8.9 percent successful the 3rd quarter, portion those astatine Burger King roseate 7.9 percent. Analysts connected mean had expected increases of 9.8 percent and 9.3 percent, respectively.

Analysts person said selling down immoderate Burger King products person been lackluster, with the marque singled retired arsenic the biggest resistance connected Restaurant Brands’ wide performance.

Restaurant Brands said connected Monday it expected to proceed to put much successful its integer and selling capabilities, noting a pandemic-led displacement to online orders.

Total gross roseate to $1.50 cardinal successful the 4th ended Sept. 30, compared with $1.34 cardinal a twelvemonth earlier. IBES information from Refinitiv had estimated gross of $1.53 billion.

Net income attributable to communal shareholders roseate to $221 million, oregon 70 cents per share, from $145 million, oregon 47 cents per share, a twelvemonth earlier.

Excluding items, it earned 76 cents per share, beating estimates of 74 cents.

Reuters

Follow