Tim Hortons sales holding up despite ‘difficult’ environment for parent firm

globalnews.ca:

A “difficult” economic environment took a bite out of Restaurant Brands International Inc.’s profit in its most recent quarter as sales fell across three of the company’s brands, but executives say they’ve already seen signs of improvement in October.

The Toronto-based company behind Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs revealed Tuesday that its net income for its third quarter totalled US$357 million, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, said the period ended Sept. 30 brought comparable sales growth of 2.3 per cent at Tim Hortons and 1.8 per cent at RBI’s international business, but Firehouse Subs experienced a 4.8 per cent decrease, Popeyes a four per cent drop and Burger King a 0.7 per cent decline.

However, Duncan Fulton, RBI’s chief corporate officer, pointed out the numbers were mirrored by peers like McDonald’s and Yum Brands, which owns Pizza Hut and KFC.

“Many of them kind of had similar results,” he said in a Tuesday interview, where he noted the consumer environment is “moderately improving.”

“We’re seeing the benefit of rates improving, gas prices improving, inflation moderating.”

The declines many of RBI’s properties experienced in late summer and early fall came as the inflation rate dropped below the Bank of Canada’s two per cent target, but after years of rising costs, consumers aren’t feeling relief at grocery stores, malls and fast-food joints.

Many consumers are now clinging to the deal-seeking behaviours they adopted when inflation was much higher and letting value menus and special offers guide what they buy at quick-serve restaurants.

Of RBI’s brands, Tims has so far weathered the conditions the