Restaurant Brands International reported that its fourth-quarter comparable sales came in above estimates, driven in part by resilient traffic at both its Burger King and Tim Hortons brands. Investors reacted positively, with the company’s U.S.-listed shares trading about 2% higher in premarket activity.
The company and other quick-service restaurants have leaned into affordability as a strategic lever to attract cost-conscious diners. Restaurant Brands’ Burger King chain rolled out value-meal promotions over the past year, including "2 for $5" and "3 for $7" offers, which the company highlighted as part of the mix that helped sustain traffic.
McDonald’s reported its own quarterly results that also beat expectations. The fast-food giant posted global comparable sales and profit above estimates on Wednesday, supported by promotional meal deals and intensified marketing activity. McDonald’s reported quarterly same-store sales growth of 3.1%, exceeding consensus estimates of a 2.8% increase, according to data compiled by LSEG.
Both Restaurant Brands and McDonald’s point to value-focused promotions and marketing as contributors to recent same-store sales outperformance. These developments underscore a broader emphasis within parts of the quick-service segment on affordability as customer demand remains sensitive to price.
Summary
Restaurant Brands International beat fourth-quarter comparable sales estimates, helped by steady customer traffic at Burger King and Tim Hortons and by value-oriented meal offers introduced over the past year. The company’s U.S.-listed shares rose about 2% premarket. McDonald’s also topped expectations, reporting 3.1% same-store sales growth versus an expected 2.8%, with the company citing meal deals and robust marketing.
Key points
- Restaurant Brands’ fourth-quarter comparable sales exceeded estimates, aided by resilient traffic at Burger King and Tim Hortons - impact: quick-service restaurant (QSR) sector and consumer discretionary markets.
- Value-focused menus and promotions, such as Burger King’s "2 for $5" and "3 for $7" offers, continue to attract budget-conscious diners - impact: pricing strategies and promotional activity across fast-food operators.
- McDonald’s also delivered stronger-than-expected global comparable sales and profit, with 3.1% same-store sales growth versus LSEG consensus of 2.8% - impact: major industry peers and investor sentiment in quick-service equities.
Risks and uncertainties
- The report does not include forward-looking guidance in this coverage, leaving the durability of current traffic and promotional effectiveness uncertain - impacts QSR revenue visibility.
- The article notes that pricier rivals are struggling, which indicates segmentation pressures within the restaurant sector; outcome differences across price tiers remain unclear - impacts higher-end casual dining and competitive positioning.
- The coverage does not provide margin or cost details tied to value promotions, so the effect of sustained discounting on profitability is not detailed here - impacts operators' margin outlook and investor assessment.