Restaurant Brands misses sales estimates on weaker Burger King demand
(Reuters) — Restaurant Brands International (NYSE:QSR) missed Wall Street expectations for quarterly sales on Friday, as still-high inflation pressured consumer spending at its Burger King chain.
Weaker household budgets are forcing some customers to cut back on restaurant food and instead rely on cheaper, home-cooked meals, a trend that has dented traffic across the restaurant industry in the past few months.
The burger market has also become highly competitive, with sector leader McDonald's (NYSE:MCD) doubling down on new product launches, menu upgrades, promotions and pricing — eroding market share at Burger King and other rivals.
Total same-store sales at the Burger King division rose 7.2%, missing estimates of 8.71%, according to LSEG IBES data.
Total revenue rose to $1.84 billion in the third quarter, from $1.73 billion a year earlier, compared with analysts' average estimate of $1.87 billion.
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