Burger King-parent beats sales estimates on international demand, value push

Feb 12 (Reuters) - Restaurant Brands International QSR.TO, QSR.N reported fourth-quarter sales above estimates on Thursday, driven by strength in its international Burger King outlets, even as it tackles stiff competition for its value menus and higher commodity costs in the United States.

Fast-food chains are offering certain items at lower prices to attract consumers who were turning away from dining out due to high menu prices over the last two years.

"2025 was a demanding year for restaurant operators. The consumer was under pressure, costs were elevated, and macro and geopolitical uncertainty weighed on confidence across many of our markets," said Restaurant Brands' executive chairman Patrick Doyle.

Expectations are for a similar consumer environment in 2026, executives said on a post-earnings call.

Industry leader McDonald's MCD.N topped quarterly global comparable sales estimates as it also ramped up marketing to drive demand.

Burger King U.S. offers two items for $5 and three for $7, and also launched a $4.99 cheeseburger value meal last month.

Same-store sales at Burger King U.S. rose 2.6% for the quarter, but missed estimates of a 3.5% rise, according to data compiled by LSEG. The company's shares were down 4% in early trading in Toronto.

Prices of beef, one of the key ingredients for the fast-food chain, hit record highs in the U.S., resulting in about a 7% commodity inflation at Burger King U.S., the company said. Higher costs were also delaying its remodeling targets at Burger King U.S., the company said.

Restaurant Brands' supply chain costs were up 8.4% for the full year, as Tim Hortons also battled high coffee prices, partly due to tariffs.

However, Burger King's international segment saw comparable sales growth accelerate to 5.8% from 4.9% a year ago, helped by strong demand in Europe and Asia.

Tim Hortons, which has over 4,000 stores in Canada and accounts for roughly 42% of the company's operating profit, reported a 2.9% rise in quarterly same-store sales, but still fell short of estimates of a 3.7% rise.

The company reported quarterly same-store sales growth of 3.1%, compared with estimates of a 2.73% rise, while adjusted profit of 96 cents per share beat estimates by 1 cent.