Monday 25 October 2021 5:29 pm | Updated: Tuesday 26 October 2021 10:28 am

Burger King owner’s shares tumble on back of revenue update

Burger King, which saw revenues of $467m in the third quarter, struggled to compete with competitors such as McDonalds and Wendy’s which has seen sales rebound strongly after taking a dip last year.

A lower than expected appetite for Burger King and Tim Hortons caused parent company Restaurant Brands International (RBI) to miss quarterly revenue estimates.

While the company’s total sales jumped by 10.8 per cent the latest quarter after declining 5.4 per cent over the same period in 2020, the group continued to feel the impacts of the pandemic.

In a trading update for the third quarter the company confirmed that system wide sales and restaurant growth were affected by Covid to a lesser extent in 2021 than in the previous year, RBI’s shares have fallen by 3.7 per cent to stand at $59.65 (£43).

Nonetheless, “COVID-19 contributed to labor challenges, which in some regions resulted in reduced operating hours and service modes at select restaurants as well as supply chain pressures,” the company said in a statement.

Burger King, which saw revenues of $467m for the period, struggled to compete with competitors such as McDonalds and Wendy’s which has seen sales rebound strongly after taking a dip last year.

“We saw a continued gap relative to our peers. We’re keenly aware of this gap,” Chief Executive Jose Cil said while discussing Burger King’s results. “We also see clear opportunities across operations, digital, menu and image that can work together to reclaim market share.”

While growth was slimmer than the company had hoped for total revenue for the quarter stood at $1.5bn and investors were treated to a payout of $0.70 per share.