QSR - Popeyes' Chicken Sandwich Drives a Massive 42% Sales Spike
Restaurant Brands International (NYSE: QSR) reported eye-popping sales at its Popeyes Louisiana Kitchen chain as its spicy chicken sandwich hit a cultural-relevancy sweet spot at just the right time. But with plant-based burger sales slowing at Burger King and the Tim Hortons coffee chain still struggling to grow, investors need to ask whether this is as good as it gets.
Sales at Popeyes soared 42% in the quarter on a 34% surge in comparable store sales. Burger King's gains seem muted by comparison at 8% and 3%, respectively, even though it represents the burger joint's best showing in over two decades. Tim Hortons, however, saw sales fall 2% as comps dropped 4% year over year.
While the chicken sandwich's popularity marked it as a huge success for the restaurant operator, what does it do next quarter as customers no longer line up around the corner for the sandwich? It also creates an incredibly high hurdle that will be difficult to climb over next year.