Restaurant Brands International Inc.

reported improved sales led by the

Tim Hortons

brand and its international businesses in the second quarter, as the industry sees

consumer confidence

start to bounce back.

The company recorded total revenues of US$2.4 billion in the quarter ended June 30, up from US$2.08 billion in the prior year and above consensus of US$2.3 billion.

“While consumer environment remains dynamic, we’ve seen encouraging signs of improvement across many of our largest businesses,” chief executive Josh Kobza said during the company’s earnings call on Thursday.

RBI reported consolidated system-wide sales growth of 5.3 per cent, up from five per cent a year ago. System-wide sales were US$11.85 billion, up from US$11.25 billion.

Second quarter adjusted operating income of US$668 million was in line with consensus of US$664 million and up from the previous year’s US$632 million.

Tim Hortons and International segments together accounted for nearly 70 per cent of RBI’s adjusted operating income, doing most of the heavy lifting in the quarter.

The iconic Canadian brand, which accounts for 40 per cent of the company’s revenue, had total revenue of US$1.08 billion, a slight increase from US$1.03 billion in 2024.

Tim Hortons reported adjusted operating income of US$278 million, up from US$269 million.

“We also saw solid improvement across the rest of the business and I feel confident in our ability to build on that momentum in the second half of the year,” Kobza said.

RBI’s overall comparable sales grew to 2.4 per cent from 1.9 per cent in the second quarter.

This includes comparable sales growing to 3.4 per cent at Tim Hortons and 3.6 per cent at Tim Hortons Canada, a slight slowdown from the previous year’s 4.6 per cent and 4.9 per cent growth, respectively.

Kobza said this is Tim Horton’s 17th consecutive quarter of positive comparable sales in Canada. He said the brand is making progress on development and remains on track to return to modest net restaurant growth in Canada in 2025.

“This quarter marked a clear return to consistent performance we’ve come to expect from the Tim’s brand,” he said.

Chief financial officer Sami Siddiqui said the company is seeing some normalization in coffee prices following a period of historic highs, which he said is welcome news for the Tim Hortons business, where coffee accounts for around 15 per cent of the commodity basket.

Siddiqui said they’re pleased to see improvements from Q1 to Q2 in the Canada trends.

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He said Tim Hortons has been “doing really well consistently,” but has also seen some sequential improvement in consumer confidence indices throughout the second quarter and into the third quarter.

• Email: dpaglinawan@postmedia.com