Restaurant Brands International reported sales and profit that surpassed analyst estimates, defying a pullback in spending that has hurt rivals’ results.

The owner of the Burger King and Tim Hortons chains said revenue was US$1.82 billion (S$2.44 billion) in the fourth quarter, exceeding the average estimate of analysts surveyed by Bloomberg. Earnings per share of 75 US cents were higher than the 73 US cent expectation.

Same-store sales, a gauge of how restaurants open for longer than a year are performing, rose 5.8 per cent, beating the 5.7 per cent average estimate of six analysts polled by Bloomberg. Digital sales jumped 20 per cent from a year ago and now makes up over a third of system-wide sales, the company said on Tuesday (Feb 13).

Restaurants Brands’ quarter runs counter to that of peers such as McDonald’s and Taco Bell-owner Yum! Brands, which reported disappointing results, hurt by the war in the Middle East and weakening consumer sentiment. 

Still, the company called out the war, saying that higher costs and a general softening in consumer spending has been “exacerbated by conflicts in the Middle East.”

The Toronto-based company’s initiatives to spark traffic have included free coffee for Tim Hortons loyalty members and Popeyes’ first-ever Super Bowl commercial. Burger King, meanwhile, is embarking on year two of a wide-ranging plan to win back customers by remodeling locations, boosting advertising and improving the customer experience. Restaurant Brands recently acquired the burger chain’s largest franchisee in a bid to speed up the overhaul.

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Restaurant Brands changed the way it reports results for its brands, as well as the definition of segment income, starting in the fourth quarter and full year 2023. Comparable sales at Burger King’s US and Canada business rose 6.4 per cent. David Tarantino, an analyst at Baird, had projected 5 per cent.BLOOMBERG