Restaurant Brands International Reports 8% Sales Drop Across Brands

Restaurant Brands International Inc., the mega-corporation behind Burger King, Tim Hortons and Popeyes, reported its earnings for the fourth quarter of 2020 on Thursday, and there’s a clear takeaway for industry watchers: off-premise dining is king. 

Systemwide, sales dropped eight percent across the three brands in the fourth quarter, with Tim Hortons reporting the worst losses at 12.9%. Burger King dropped 8.1% and Popeyes dropped just 0.9%. 

The Q4 results bring the total sales drop for the company in 2020 to 8.6%. That drop shows that, despite a bold brand refresh from Burger King and the sustained popularity of Popeyes Chicken Sandwich, the restaurant industry is still hurting from the pandemic.

But there are a few bright spots in RBI’s earnings report, which may shed some light on where the industry at large is headed. Among those bright spots: digital sales and global delivery sales both doubled across RBI’s system in 2020.

“We increased support for and continued to build on our e-commerce platforms, reimagined service opportunities like curbside pickup and expanded delivery services into thousands of new restaurants,” Jose Cil, the company’s CEO, said. “The outcome has been the more than doubling of digital sales in North America."

RBI’s mostly disappointing earnings follows YUM! Brands’ similarly dire report, which revealed wide losses from big-name brands and plans to shift extensively to off-premise dining. 

RBI’s restaurant brands have partnered with third-party delivery apps to boost digital sales via delivery portals, and its earnings release mentions revamping drive-thru lines with digital menu boards. 

Read the full report at rbi.com.