(Reuters) – Restaurant Brands International missed Wall Street expectations for quarterly sales on Friday, as still-high inflation pressured consumer spending at its Burger King chain.
Weaker household budgets are forcing some customers to cut back on restaurant food and instead rely on cheaper, home-cooked meals, a trend that has dented traffic across the restaurant industry in the past few months.
The burger market has also become highly competitive, with sector leader McDonald’s doubling down on new product launches, menu upgrades, promotions and pricing – eroding market share at Burger King and other rivals.
Total same-store sales at the Burger King division rose 7.2%, missing estimates of 8.71%, according to LSEG IBES data.
Total revenue rose to $1.84 billion in the third quarter, from $1.73 billion a year earlier, compared with analysts’ average estimate of $1.87 billion.
(Reporting by Deborah Sophia in Bengaluru; Editing by Devika Syamnath)
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