By Hilary Russ
NEW YORK (Reuters) – Restaurant Brands International on Tuesday named a new chief executive to accelerate a turnaround plan for its struggling Burger King brand.
The company, which also owns Popeyes, Tim Hortons and Firehouse Subs, came in slightly short of Wall Street earnings estimates for the fourth quarter ended Dec. 31, due in part to higher operating expenses. Its shares fell more than 3.5%.
Company veteran and current chief operating officer Joshua Kobza will take over as chief executive on March 1, replacing Jose Cil, who has been at the helm since 2019 and will remain with the company for a year on an advisory basis.
Under Cil’s management, Burger King modernized its visual identity. In September 2022, the chain announced a $400 million turnaround plan to increase advertising, bring in new kitchen equipment and remodel restaurants.
“Some operators are definitely struggling,” Kobza told Reuters in a telephone interview. “If there are restructurings, we’ll be intimately involved in them,” to help prepare franchisees for success, he said.
HIGHER GROWTH
Tuesday’s results “demonstrate that the company’s efforts to drive revenue growth across all brands appear to be making progress,” wrote Jon Tower, an analyst at Citi. But the company will still be pressured by inflation and investments to boost sales, he wrote.
Total revenue rose about 9% to $1.69 billion in the fourth quarter, compared with estimates of $1.67 billion, according to IBES data from Refinitiv.
Excluding items, the company earned 72 cents per share, compared with expectations of 73 cents.
Global comparable sales increased nearly 8% for the quarter, led by 11% growth at Tim Hortons Canada and Burger King International – particularly in France, Spain, Australia, Brazil and the UK, helping to offset the stress in China.
(By Hilary Russ and Deborah Sophia)
#Burger #King #owner #appoints #chief #executive #boost #recovery #ISTOÉ #DINHEIRO