Sales Slowdown, Inflation Affect Burger King Parent

Burger King

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Key Takeaways

  • Restaurant Brands International (QSR) announced financial results for the fourth quarter of 2022 on Tuesday, Feb. 14.
  • The parent company of Burger King, Popeyes, and Tim Hortons reported slowing sales growth, and its shares moved lower.
  • The company also announced that Chief Operating Officer Joshua Kobza will be taking over as CEO.

Restaurant Brands International (QSR) shares fell as the parent of Burger King and other fast-food chains posted slowing fourth quarter sales and warned about the potential impact of inflation. The company also announced a new CEO.

Restaurant Brands reported that system-wide sales increased 11.8%, down from a jump of 13.8% a year earlier. Sales at Burger King, its largest segment, were also up 11.8% compared to a rise of 15.4% in 2021. Tim Hortons sales added 12.3% after advancing 14% a year ago. The annual gain in sales was better for Popeyes Fried Chicken, with an 11.2% gain versus 7.2% the year before. Comparable store sales lost ground, higher by 7.9% compared to 9.3% in 2021.

The company noted that, in 2022, it faced higher commodity, labor, and energy costs, partially related to the macroeconomic impacts of COVID-19 and the war in Ukraine. It warned that "further significant increases in inflation" could have an adverse impact on its business if the company and franchisees are not able to adjust prices in a way that won't reduce consumer demand.

CEO Change

Along with its financial results, Restaurant Brands said that COO Joshua Kobza has been chosen by the board as the new CEO, effective March 1, "as part of its ongoing succession planning process." He replaces José Cil, who has held the position since 2019.

Shares of Restaurant Brands International dropped 2.7%.

Article Sources
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  1. Restaurant Brands International. "Restaurant Brands International Inc. Reports Full Year and Fourth Quarter 2022 Results."

  2. Restaurant Brands International. "Joshua Kobza Appointed CEO of Restaurant Brands International."

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