Burger King-Owner Restaurant Brands Hit by Burger King’s Sales Miss, Staff Woes -Breaking
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© Reuters. Investing.com – Restaurant Brands stock (NYSE:) fell 4% Monday after the company’s third-quarter revenue fell short of expectations on a combination of factors ranging from the Delta variant of coronavirus keeping customers home to more aggressive competition.
The total revenue for July and September rose from $1.33 Billion in the 2020 quarter to $1.49 Billion. Analysts estimated that it would be at $1.52, however sales declined as the Delta version spread. Sales at Burger King also fell below expectations.
However, the company stated that certain markets remain affected. It expects that local conditions will continue dictating restrictions on operations in restaurants, their capacity and operating hours.
The company stated that it expected to continue seeing a positive impact of Covid-19 on its financial results for 2021, and would invest in digital marketing and its digital capabilities. Online sales may have declined due to pandemic-time higher sales but they are still much higher than before the epidemic. It is clear that online shopping will be here for the long-term.
Adjusted profits rose to $353 million, or 10%.
Burger King has tried to compete with rivals like McDonald’s (NYSE:) but the effort has faced challenges, and not just from competition. The newly introduced hand-baked chicken sandwich, which is labor intensive, can be difficult to manage in a time when staff are stretched thin and salaries rise.
On its part, McDonald’s has toyed with its menu and been more aggressive with campaigns, collaborating with popular South Korean boy band BTS to pull in customers.
Same-store sales at coffee chain Tim Hortons, the biggest revenue-maker out of Restaurant Brands’ three brands, jumped around 9%, while Burger King’s rose nearly 8%.
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