Restaurant Brands International (RBI), reported financial results for the company overall and for Popeyes for the Q2 2018 period. RBI is the parent company of Burger King, Popeyes Louisiana Kitchen and Tim Hortons. Among some of the more exciting news coming from the multi-brand restaurant company was the continued growth of Popeyes under its leadership. RBI acquired Popeyes Louisiana Kitchen in an all-cash transaction for $1.8B in March 2017. This Q2 2018 quarter was the first quarter lapping a prior-year period that reflected Popeyes performance while under RBI control.
Here are some highlights from Popeyes’ financial performance. Popeyes grew its Q2 sales to $937M, a 10.7-percent increase this quarter, compared to a 3.3-percent increase in the same period last year. The year-over-year sales growth was primarily driven by system count growth of 8 percent and a 2.9-percent comparable sales increase. Comparable sales of grew by 2.9 percent, compared to a 2.7 percent decrease in the same period last year.
For Popeyes, much of the story was increasing unit counts and embracing restaurant delivery, as revealed in an investor conference call August 1. Popeyes’ store count grew by more than 200 units from the same period last year to 2,975 this year, and by nearly 50 units from the first quarter.
Parent RBI indicated that a priority for the company is to increase the delivery offering for Popeyes and its sister company, Burger King, in addition to increasing delivery partners. Popeyes added restaurant delivery to its restaurants in five major markets in May through a partnership with Uber Eats.
Another highlight: In March, Popeyes signed a 300-unit master franchise agreement to develop in Brazil. The previously-announced deal with BK Brasil S.A. leverages the global franchise development platform of RBI, adding more than 10 percent to the current Popeyes store count over the next 10 years.
“During the second quarter, we continued to grow each of our three iconic brands, and we made good progress against the 2018 priorities that we outlined last quarter, “ said Daniel Schwartz, chief executive of RBI. “…we also delivered strong system-wide sales growth at Burger King and Popeyes, driven by accelerated net restaurant growth. We are very optimistic about the long-term growth potential for each of our brands and remain focused on driving improved guest satisfaction and franchisee profitability.” For the quarter, Popeyes’ adjusted EBITDA was $40.2M, a $7M increase from the same period last year.
Photo credit: Restaurant Brands International, Inc.