Burger King's Turnaround Attracts Price-Conscious Diners as 3Q Sales Rise — Update

By Adriano Marchese

Burger King is cementing its U.S. turnaround, outpacing fast-food rivals that continue to wrestle with sluggish sales and traffic.

The burger chain's momentum anchored third-quarter profit growth for parent company Restaurant Brands International and helped widen its competitive gap against direct competitors. Chief Executive Josh Kobza said the performance allowed Burger King to jump to the number-two position in the U.S. burger category, validating the multi-year "Reclaim the Flame" strategy to modernize stores and improve menu offerings.

"We widened our gap to Burger King QSR peers to nearly 10 points, and after years of hard work, we are incredibly proud to have reclaimed the No. 2 position in the U.S. burger category," Kobza said on the earnings call Thursday.

Growth was led by an 8.4% jump in same-store sales at Burger King U.S., more than doubling its growth rate from 3.1% in the prior year.

However, despite the momentum at Burger King, the company reported a slight top-line revenue shortfall and a 1.8% same-store sales decline at Popeyes U.S. against the company's broader gains.

Total revenue rose 3.1% to $2.53 billion, but came in shy of analyst forecasts of $2.55 billion.

Shares fell 3.3% to $72.02, with the stock still up about 5.6% on the year.

Burger King's performance comes as fast-food rivals face consumer pushback over rising prices. Under its "Reclaim the Flame" initiative, the chain paired store remodels and digital marketing with $5 and $7 value tiers, upgraded menu items, and high-profile brand collaborations-such as with Dragon Ball Z and Hello Kitty-to outpace competitors leaning on basic meal deals.

Executive Chairman Patrick Doyle said that consumer perception has shifted as a result. "Three years ago, our Burger King was in the consideration set of 70% of consumers. That number now is 78%," he said on the call. "It just means the brand is becoming more relevant."

Restaurant Brands, which also houses the Tim Hortons brand, posted net income of $704 million, or $1.54 a share, up from $440 million, or 96 cents a share, in the comparable quarter a year ago. Adjusted earnings of $1.10 a share topped forecasts by 2 cents.

Margins at franchisees continue to face pressure from high commodity costs, especially from the high cost of beef, a key ingredient which has been at record high prices. However, Chief Financial Officer Sami Siddiqui pointed to signs of relief. "The good news is we're starting to see a little bit of relief on that front, and we expect to see a little bit more next year," he said.

The company's coffee-and-donut brand Tim Hortons saw comparable sales growth decelerate in the quarter, reaching a growth rate of 1.5%, while its international segment sales growth also slipped to 3.9%. Together, companywide comparable sales growth slowed down to 3.8% from 4% a year earlier.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 29, 2026 12:12 ET (16:12 GMT)