Restaurant Brands International on Thursday posted quarterly profit below Wall Street estimates, dented by tepid demand for its Tim Hortons coffee as customers avoided stepping out amid fresh restrictions imposed to tackle Covid-19 cases.
Comparable sales at Tim Hortons sank 11% in the quarter, hurt in part by temporary dining room closures and curfews in parts of Canada as rising Covid-19 cases deterred diners from stepping out to get their morning bagels.
The company has been heavily investing in revamping its brands, buying fresh coffee brewers, new water filters and pumping money into its drive-thru business.
Net income attributable to common shareholders fell to $91 million, or 30 cents per share, compared with $165 million, or 54 cents per share, a year earlier.
Excluding items, the company earned 53 cents per share, compared with analysts' estimates of 65 cents.
Total revenue in the fourth quarter ended Dec. 31 came in at $1.36 billion, compared with $1.48 billion in the year-ago period, but was above the average estimate of $1.33 billion, according to IBES data from Refinitiv.