TORONTO  — The owner of Tim Hortons and Burger King reported strong sales and profit growth in the first quarter as it leveraged its fast-food network around the globe and promoted products such as grilled hot dogs and pulled pork sandwiches.

Net earnings Restaurant Brands International Inc. were US$50 million in the three-month period ended March 31, or US21 cents per share, compared with a loss of US$8.3 million (or a loss of US4 cents per share) in the same period a year ago. Adjusted per-share earnings surged 96 per cent to US30 cents per share, versus US16 cents a year ago, and beat average analyst estimates by Thomson Reuters of US22 cents per share.

System-wide sales grew 7.9 per cent at Tim Hortons in constant currency to US$1.42 billion, and were up 10 per cent at Burger King in constant currency to US$4.2 billion.

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The company took a steep hit on currency fluctuations, however, with a four per cent overall revenue drop at Tim Hortons due to the weak Canadian dollar.

Actual revenue was US$657.8 million at Tim Hortons, compared with US$683.7 million a year ago. Currency had a weakening effect on Restaurant Brands’ overall revenue, which fell 1.6 per cent in the period to US$918.5 million from US$933.3 million a year ago.

“We believe our focused approach on delivering a great guest experience and growing franchisee profitability will support long-term, sustainable value for our guests, franchisees, employees and shareholders,” chief executive Daniel Schwartz said in a statement.

Same-store sales, a key measure of foodservice growth calculating volume at units open for more than a year, grew 5.6 per cent at Tim Hortons and 4.6 per cent at Burger King in constant currency.
The company added 25 new Tim Hortons restaurants and five Burger King outlets in the quarter.
The company also declared a dividend of 15 cents per share payable on July 6.