Grub

Popeye's had an awesome year, and its brother Burger King is jealous

Snacks / Monday, February 10, 2020

Praising the favorite child... Restaurant Brands International is a Canadian holding company, and also the parent of Burger King, Popeyes, and Tim Hortons. But RBI was especially proud of Popeyes, which outshined its siblings this year with a surge in sales.

  • Burger King opened the most new locations in 20 years, but sales were up barely 3%.
  • Tim Hortons' performance "did not reflect the incredible power of our brand," according to RBI — sales were down 4% (Sorry, mom).
  • Popeyes sales jumped 34% driven by its viral fried chicken sandwich, which was sold out in 2 weeks and caused a chicken shortage that took months to re-supply. The proud parent called Popeyes' poultry dish "iconic" and a "game changer in every way." Thanks, mom.

RBI is latching onto trend foods... Popeyes Chicken Sandwich, like the Baby Yoda of food, was a huge win for RBI. Last quarter, the Impossible Whopper drove Burger King US sales up 5%. But trend foods aren't always successful — Tim Horton's Beyond Breakfast sandwich was killed off after less than a year.

Profit-wise, RBI could do more... It's underperforming compared to Yum Brands, the owner of KFC, Pizza Hut, and Taco Bell. Yum is the Lyft to RBI's Uber — both own 3 huge fast-food chains. And they both had about $5.5B in sales last year — but Yum made almost 2X the profit. RBI needs to boost sales and/or lower costs to super size its profits to Yum's levels.

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