By (Reuters) -Restaurant Brands missed estimates for quarterly revenue on Tuesday due to weak demand across key businesses such as Tim Hortons, Burger King and international markets including China and the Middle East.
The Toronto, Canada-based company’s U.S.-listed shares were down 5% before the bell.
Consumers are relying on cheaper, home-cooked meals instead of eating out as fast food prices have risen over the past year, hurting traffic at Burger King, McDonald’s (NYSE:MCD) and others in the restaurant industry.
Steady demand for cold drinks, donuts and breakfast bundles at Tim Hortons drove quarterly same-store sales growth of 2.3% at the coffee chain, but Burger King declined 0.7%, compared with a 6.6% rise last year.
The company reported net income of $357 million, down from $365 million in the prior-year period.
Total (EPA:TTEF) revenues for the three months ended September 30 came in at $2.29 billion, below analysts’ expectations of $2.31 billion, according to data compiled by LSEG.