Shares of Restaurant Brands (QSR) - Get Restaurant Brands International Inc. Report were falling premarket Thursday after the fast food restaurant operator reported earnings and same store sales comps that were below analyst estimates.
The parent company of Burger King, Popeye's and Tim Hortons reported adjusted earnings of 53 cents per share, down from 75 cents a year ago, on revenue of $1.36 billion that fell 8.2% year over year. Same store sales for Burger King fell 7.9% in the quarter.
Analysts were expecting earnings of 65 cents per share on revenue of $1.35 billion, with Burger King comps falling 4.5%.
"We are confident that our efforts in food and beverage quality, restaurant experience, digital leadership and brand building will be beneficial to returning our business to the growth we know we are capable of in all three brands," said CEO Jose Cil.
Popeye's comps fell 5.8%, compared with expectations of a 4.3% decline, while Tim Horton's comps dropped 11% compared to an 11.3% expectation.
Restaurant Brands shares were down 1.1% to $59.42 premarket Thursday.
Separately, the company declared a dividend of 53 cents per share with a goal of $2.12 per share in dividends paid out in 2021.
Restaurant Brands said the decrease in annual net income it recorded in 2020 was primarily driven by a decrease in Burger King and Tim Hortons segment income, among other issues it faced in the period.
Last week, fast food rival Yum! Brands, which operates KFC, Pizza Hut and Taco Bell, reported fourth quarter results that topped analyst estimates.
"Yum! enters 2021 a stronger company primed to profitably grow system sales this year and beyond. Despite the challenges of 2020, our full-year results demonstrated our resilience and validated the strategies we put in place during the transformation of Yum!," said CEO David Gibbs.