Shares of Restaurant Brands International rocketed up Monday after the company posted better-than-expected fourth-quarter profit on the back of new menu items and affordable burgers.
Shares were recently trading up more than 6 percent.
The company, which owns Burger King, Tim Horton's and Popeye's, said net income in the fourth quarter rose to $395 million, or $1.59 a share, up from $118.4 million, or 50 cents a share, in the year-earlier period.
Excluding items, the company earned 66 cents per share, beating analysts' average estimate of 57 cents, according to Thomson Reuters consensus.
Total revenue climbed 11 percent to $1.23 billion, just shy of expectations of $1.25 billion.
Same-store sales at its burger restaurants jumped 4.6 percent in the quarter, nearly double the 2.5 percent that analysts had predicted. The company said that a balance of value promotions and new menu items helped boost same-store sales at Burger King during the quarter.
Same-store sales growth at Tim Horton's and Popeye's were more tepid, rising 0.1 percent at the coffee chain and falling 1.3 percent at the chicken chain. The company blamed softer sales in the U.S. and increased competition in the quick-service space for weak sales at Tim Horton's during the quarter.
As consumers enjoy more and more dining options, restaurants remain focused on value, convenience and quality to stay competitive. Restaurant Brands is facing steep competition from McDonald's and Taco Bell, which both have been aggressively adding to their dollar menus. Dunkin' Donuts has also doubled down on its value offers, including $2 drinks in the afternoon.