In the next four quarters, analysts expect Restaurant Brands International’s (QSR) revenue to rise 10.1% YoY (year-over-year) to $5.55 billion from $5.04 billion, driven by its new accounting standards and systemwide growth due to the opening of new restaurants and positive SSSG (same-store sales growth).
Sales growth initiatives
To drive its SSSG, Tim Hortons is focusing on product excellence, customers’ restaurant experience, and brand communications. Last month, the company launched Breakfast Anytime across Canada after receiving a positive response from its customers during testing. The brand has launched its “Welcome Image” restaurant redesign to enhance customers’ experience, and franchisees have reacted positively, with one-third of Canadian franchisees agreeing to complete restaurant remodeling by 2019. The company has announced it will be spending $770 million in the next two years to strengthen its supply chain, including building two new distribution centers in Alberta and British Columbia and expanding its existing facility in Nova Scotia.
After successfully testing deliveries, Popeyes is expanding the service to more US restaurants. The company has released two new point-of-sale cash register solutions for its franchisees to enhance the quality and frequency of data transfer and help with app-related integration.
In the second quarter, analysts expect McDonald’s (MCD) and Jack in the Box’s (JACK) revenue to fall by 3.3% and 25.0%, respectively, and Wendy’s (WEN) to rise by 23.1%. Next, we’ll look at Restaurant Brands’ EPS in the second quarter.