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Burger King-parent Restaurant Brands' quarterly results miss on weak demand
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Burger King-parent Restaurant Brands' quarterly results miss on weak demand
May 26, 2025 3:58 AM

May 8 (Reuters) - Restaurant Brands

missed first-quarter revenue and profit estimates on Thursday,

hurt by sluggish demand at its restaurant chains such as Burger

King and Tim Hortons against the backdrop of tariff-related

uncertainty.

The restaurant industry has been battling ongoing sales

declines as budget-conscious Americans stick to home-cooked

meals, prioritizing spending on essentials over dining out.

The U.S. economy shrank for the first time in three years in

the first quarter, signaling consumers are expecting product

prices to shoot up due to the escalating global trade tensions.

The Trump administration's shifting tariff policies have

forced businesses across industries to raise prices in an effort

to protect profit margins from rising input costs and supply

chain disruptions.

Fast-food chain operators such as McDonald's, Domino's

, Chipotle and Starbucks ( SBUX ) took a hit to

sales and flagged weak consumer demand.

Restaurant Brands' increased advertising and promotional

efforts such as $5 value meals didn't connect well with

middle-to-lower-income groups.

The company's total comparable sales rose 0.1% in the

quarter, largely below the 4.6% rise a year earlier.

Restaurant Brands reported quarterly revenue of $2.11

billion, compared with analysts' average expectation of $2.13

billion, according to data compiled by LSEG.

On an adjusted basis, the company earned 75 cents per share,

compared with estimates of 78 cents.

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