10:52 AM EST, 11/05/2024 (MT Newswires) -- Restaurant Brands International's (QSR) third-quarter results fell short of market estimates as overall comparable sales growth slowed down amid declines at Burger King, Popeyes Louisiana Kitchen and Firehouse Subs.

The company on Tuesday reported adjusted earnings of $0.93 per share for the September quarter, up from $0.90 the year before, but below the Capital IQ-polled consensus of $0.95. Revenue advanced to $2.29 billion from $1.84 billion last year, trailing the Street's view for $2.35 billion. The stock was down 2.2% during Tuesday trading.

Revenue growth in the quarter was driven by the inclusion of a new operating segment called Restaurant Holdings, which includes results from Carrols Burger King restaurants and Popeyes China restaurants. The company completed the acquisitions of Carrols Restaurant Group and Popeyes China earlier this year.

Consolidated comparable sales edged 0.3% higher, decelerating from a 7% gain in the prior-year quarter. Burger King's same-store sales decreased 0.7%, compared with a 0.4% increase modeled by analysts. The fast food chain's US comparable sales were down 0.4% while international markets rose 1.9%.

Comparable sales at Tim Hortons improved 2.3%, including a 2.7% increase in Canada, although international sales dropped 15%. Popeyes Louisiana Kitchen same-store sales fell 4% with a decline in the US offsetting a 12% international jump. Firehouse Subs comparable sales dropped 4.8%.

Total operating costs and expenses rose to $1.71 billion from $1.26 billion last year. Restaurant Brands' total restaurant count increased to 31,525 from 30,375.

"Our results demonstrate the resilience of our business and the dedication of our teams and franchisees," Chief Executive Josh Kobza said in a statement. "We have been pleased to see an improvement in consolidated comparable sales in October and remain confident we will achieve our 8% plus adjusted operating income growth target for 2024 and beyond."

Restaurant Brands maintained its financial targets for the 2024 to 2028 period, including over 3% growth in comparable sales.

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