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Restaurant Brands International: Revenue Outperformed in 3Q17

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3Q17 performance

Restaurant Brands International (QSR) outperformed other fast food restaurants in 3Q17 by posting revenue growth of 12.4%. Its revenue was $1.2 billion compared to $1.1 billion in 3Q16.

Revenue growth was driven by the addition of new restaurants and positive SSSG (same-store sales growth) in Burger King and Tim Hortons. However, the decline in same-store sales in Popeyes Louisiana Kitchen offset some of the growth in 3Q17 revenue.

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More revenue performance

Restaurant Brands International was followed by McDonald’s (MCD). In 3Q17, McDonald’s (MCD) posted revenue of $5.8 billion, which represents a fall of 10.4% from $6.4 billion in 3Q16. The refranchising led to 198 fewer company-owned restaurants compared to 3Q16, which led to a decline in McDonald’s revenue. However, some of the decline was offset by positive SSSG.

McDonald’s was followed by Jack in the Box (JACK). In 3Q17, JACK’s revenue fell 15% from $398.4 million to $338.8 million. In 3Q17, the company operated 141 fewer company-owned restaurants, which, along with the decline in same-store sales for both Jack in the Box and Qdoba Mexican Eats, led to a decline in the company’s revenue. However, some of the declines were offset by the addition of 27 new Qdoba restaurants in the last four quarters.

Wendy’s (WEN) posted revenue of $308 million in 3Q17, which represents a fall of 15.4% from $364 million. Due to optimization initiatives, the company operated 249 fewer company-owned restaurants compared to 3Q16, which led to a decline in revenue. The decline in SSSG also contributed to the fall in revenue.

Next, we’ll look at same-store sales growth for our fast food restaurants in 3Q17.

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