Tim Hortons parent company sees $364 million profit in Q3 despite rising costs

By The Canadian Press on November 3, 2023.

TORONTO – Restaurant Brands International Inc. recorded a US$364 million profit in its most recent quarter as it continued to warn of increases in commodity, labour, and energy costs.

The Toronto-based owner of Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs says its third quarter net income compared with a profit of US$530 million a year earlier.

It says the decrease seen over the period ended Sept. 30 was primarily driven by income tax expenses and an increase in share-based compensation, non-cash incentive compensation expense and interest expenses.

The fast-food parent company, which reports in U.S. dollars, is also posting a revenue boost to US$1.83 billion from US$1.72 billion a year earlier.

The rise in revenue came even as RBI says it has seen the war in Ukraine and COVID-19 trigger increases in inflation, foreign exchange volatility and rising interest rates which may be exacerbated by the conflict in the Middle East.

It warns the geopolitical tensions could have an adverse impact on its business, if the company and its franchisees are not able to adjust prices sufficiently without negatively impacting consumer demand.

This report by The Canadian Press was first published Nov. 3, 2023.

Companies in this story: (TSX:QSR)

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