$1 menus may already be a thing of the past, Restaurant Brands CEO says
The slowdown in the U.S. economy hasn’t warranted a dollar menu from the likes of Burger King, but Restaurant Brands CEO José Cil says it does require restaurants to provide a steady stream of value.
“We have had dollar menus or kind of entry-level a la carte menus,” the CEO overseeing Burger King and other brands said on Yahoo Finance Live (video above). “I don’t know if a dollar is any longer the relevant price point, but having an everyday entry-level price point product that consumers can go to is an important aspect of being a broad-based and very thoughtful restaurant business. That’s something that we continue to explore and look at.”
Despite the rising economic challenges and a lack of dollar offerings, consumers continued to seek out Restaurant Brands’ chains in the third quarter.
U.S. same-store sales at Burger King rose 4% for the quarter while Popeye’s and Firehouse Subs’ U.S. same-store sales rose 1.3% and 0.8%, respectively. And overall same-store sales grew by 9%, supported by big gains internationally at Tim Horton’s and Burger King.
Here is how Restaurant Brands performed compared to Wall Street estimates for the third quarter.
Restaurant Brands stock rose 2% in Friday trading on the heels of the company’s results.
“Net-net, we could see shares rally near-term on better results, but follow-through may be limited as investor concerns regarding unit growth and key core market performance (BK US/PLK US) remain,” Citi Analyst Jon Tower wrote in a note to clients.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube