Popeyes parent's revenue falls 25% despite chicken chain's soaring same-store sales - CNBC | Canada News Media
Connect with us

Business

Popeyes parent's revenue falls 25% despite chicken chain's soaring same-store sales – CNBC

Published

4 years ago

 on


A Popeyes fast food chain restaurant is seen on August 30, 2019 on a street of Washington D.C.

Eric Baradat | AFP | Getty Images

Restaurant Brands International on Thursday reported that its quarterly revenue plunged 25% as the coronavirus pandemic weighed on same-store sales at Burger King and Tim Hortons.

But Popeyes, which has become the gem of Restaurant Brands’ portfolio, reported same-store sales growth of 24.8%, powered by its popular chicken sandwich.

Shares of the company fell 2% in morning trading. The stock, which has a market value of $26 billion, has fallen 11% so far this year.

Here’s what the company reported for the quarter ended June 30 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 33 cents, adjusted, vs. 31 cents expected
  • Revenue: $1.05 billion vs. $1.05 billion expected

The Burger King parent reported second-quarter net income of $163 million, or 35 cents per share, down from $257 million, or 55 cents per share, a year earlier.

Excluding items, Restaurant Brands earned 33 cents per share, beating the 31 cents per share expected by analysts surveyed by Refinitiv.

Net sales dropped 25% to $1.05 billion, meeting expectations. Digital sales soared 120%, more than double from the year-ago period.

Tim Hortons, which typically contributes about 60% of Restaurant Brands’ total revenue, saw its same-store sales plunge 29.3%. Even before the pandemic, the Canadian coffee chain struggled as sales growth in its domestic market slowed down. Now as the virus changes consumer behavior, chains from Starbucks to Taco Bell are reporting that fewer customers are stopping by for breakfast or their early morning java. Tims’ same-store sales were still down by the mid teens by the end of July.

A year ago, Popeyes was also experiencing stagnating same-store sales growth. Then its chicken sandwich launched in August, reigniting sales and selling out of its initial supply weeks ahead of schedule. In the second quarter this year, its same-store sales soared by nearly 25%, thanks in part to the popular item.

Executives said that Popeyes saw growth across all of its menu categories. Its sales continued to pick up throughout the quarter and into July. As of the end of July, its same-store sales were up by high twenties.

Burger King reported same-store sales declines of 13.4%. The burger chain’s U.S. same-store sales shrank by 9.9% during the quarter. Restaurant Brands said that sales are improving since hitting a low point in March, and as of the end of July, its same-store sales were unchanged from a year ago. 

About 93% of Restaurant Brands’ locations have reopened globally. Substantially all of its restaurants in North America and Asia Pacific are open. In Europe, the Middle East and Africa, only about 10% of locations are shuttered temporarily, and about 20% of Latin American restaurants are still closed. About a third of dining rooms have reopened in the three chains’ domestic markets.

The company excludes a location from its monthly same-store sales calculations if it’s been closed for a significant portion of that month.

CEO Jose Cil told analysts that he expects net restaurant growth to be flat for the year. While the company plans to open new locations, it will also be closing more than usual.

The permanent closures will affect both domestic and international markets, but Cil did not elaborate on which brands will be most affected. CFO Matt Dunnigan said that the closures would be relatively small, representing just a “few percentage points” of its global footprint and system-wide sales.

Restaurant Brands said it can’t predict the future impact of the virus on its business or when it will resume normal operations, but it does expect Covid-19 to weigh on its third-quarter results.

The company also said that it has fully paid down the $1 billion revolving credit facility it drew down on in mid-March, amid uncertainty about the credit markets as the crisis unraveled.

Restaurant Brands said Thursday that it has notified the Toronto Stock Exchange of its plans to renew authorization for its buyback program. Many companies have suspended buyback programs in response to the pandemic and ensuing crisis.

Read the full report here.

Let’s block ads! (Why?)



Source link

Related Topics:
Continue Reading

Business

What Difference Will You Make to an Employer?

Published

15 hours ago

 on

October 21, 2024

By

It’s common knowledge that companies don’t hire the most qualified candidates. Employers hire the person they believe will deliver the best value in exchange for their payroll cost.

Since most job seekers know the above, I’m surprised that so few mention their Employee Value Proposition (EVP). Most job seekers list their education, skills, and experience without substantiating them and expect employers to determine whether they can benefit their company; hence, most resumes and LinkedIn profiles are just a list of opinions—borderline platitudes—that are meaningless and, therefore, have no value. Job seekers need to better explain, along with providing evidence, how they’ll contribute to an employer’s success.

Employers don’t hire opinions (read: talk is cheap); they hire results.

You’re not offering anything tangible when you claim:

 

  • I’m a great communicator.
  • I’m detail oriented.
  • I’m a team player.

 

Tangible:

 

  • “At Global Dynamics, I held quarterly town hall meetings with my 22 sales reps, highlighting our accomplishments, identifying opportunity areas, and recognizing outstanding performers.”
  • “For eight years, I managed Vandelay Industries IT department, overseeing a staff of 18 and a 12-million-dollar budget while coordinating cross-specialty projects. My strong attention to detail is why I never exceeded budget.”
  • “While working at Cyberdyne Systems, I was part of the customer service team, consisting of nine of us, striving to improve our response time. Through collaboration and sharing of best practices, we reduced our average response time from 48 to 12 business hours, resulting in a 35% improvement in customer feedback ratings.”

 

These examples of tangible answers provide employers with what they most want to hear from candidates but rarely do; what value the candidate will bring to the company. Typically, job seekers present their skills, experience, and unsubstantiated opinions and expect recruiters and employers to figure out their value, which is a lazy practice.

Getting hired isn’t based on “I have an MBA in Marketing and Sales,” “I’ve been a web designer for over 15 years,” “I’m young, beautiful and energetic,” blah, blah, blah. Likewise, being rejected isn’t based on “I’m overqualified,” “I’m too old,” “I don’t have enough education,” blah, blah, blah. Getting hired depends entirely on showing employers that you can add value and substance to their company; that you’ll serve a purpose.

When you articulate a solid value offer, the “blah, blah, blah” doesn’t matter. Job seekers focus too much on the “blah, blah, blah,” and when not hired, they say, “It’s not me, it’s…” The biggest mistake I see job seekers make is focusing on the “blah, blah, blah”—their experience and education—believing this is what interests employers. Hiring managers are more interested in whether you can solve the problems the position exists to solve than in your education and experience.

 

Not impressive: Education

Impressive: A track record of achieving tangible results.

 

You aren’t who you say you are; you are what you do.

 

If you want to be somebody who works hard, you have to actually work hard. If you want to be somebody who goes to the gym, you actually have to go to the gym. If you want to be a good friend, spouse, or colleague, you have to actually be a good friend, spouse, or colleague. Actions build reputations, not words.

The biggest challenge job seekers face today is differentiating themselves. To stand out and be memorable, don’t be like most job seekers, someone who’s all talk and no action. Any recruiter or hiring manager will tell you that the job market is heavily populated with job seekers who talk themselves up, talk a “good game” about everything they can “supposedly” do, drop names, etc., but have nothing to show for it.

More than ever, employers want to hear candidates offer a value proposition summarizing what value they bring. If you’re looking for a low-hanging fruit method to differentiate yourself, do what job seekers hardly ever do and make a hard-to-ignore value proposition.

  1. Increase sales: “Based on my experience managing Regina and Saskatoon for PharmaKorp, I’m confident that I can increase BioGen’s sales by no less than 25% in Winnipeg and the surrounding area by the end of 2025.”
  2. Reduce cost: “During my 12 years as Taco Town’s head of purchasing, I renegotiated contracts with key suppliers, resulting in 15% cost savings, saving the company over $450,000 annually. I know I can do the same for The Pasta House.”
  3. Increase customer satisfaction:“During my time at Globex Corporation, I established a systematic feedback mechanism that enabled customers to share their experiences. This led to targeted improvements, increasing our Net Promoter Score by 15 points. I can increase Dunder Mifflin’s net promoter score.”
  4. Save time: “As Zap Delivery’s dispatcher, I implemented advanced routing software that analyzed traffic patterns, reducing average delivery times by 20%. My implementation of this software at Froggy’s Delivery can reduce your delivery times by at least 20%, if not more.”

 

If you want to achieve job search success as soon as possible, structure your job search with a single thread that’s evident and consistent throughout your résumé, LinkedIn profile, cover letters and especially during interviews; clearly convey what difference you’ll make to the employer.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

Continue Reading

Business

Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

Published

4 days ago

 on

October 17, 2024

By

 

Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Business

All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store

Published

4 days ago

 on

October 17, 2024

By

Product Name: All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store

Click here to get All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store at discounted price while it’s still available…

All orders are protected by SSL encryption – the highest industry standard for online security from trusted vendors.

All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store is backed with a 60 Day No Questions Asked Money Back Guarantee. If within the first 60 days of receipt you are not satisfied with Wake Up Lean™, you can request a refund by sending an email to the address given inside the product and we will immediately refund your entire purchase price, with no questions asked.

(more…)

Continue Reading

Trending

Exit mobile version