Restaurant Brands International the operator of both Burger King and Tim Hortons said its sales rose for the fourth quarter driven by growth from its franchise business.
Comparable sales for Tim Hortons were up by 0.2%, which was less that what Wall Street was expecting of just over 1.1% growth.
During the quarter, same-store sales for Burger King were up by more than 2.8% ahead of analyst expectations on Wall Street of 2.5% growth.
Sales system wide for the company including revenue from its franchised locations expanded by 2.4% at its Tim Hortons locations and by 8.5% at its Burger King locations.
Although there has been a slowdown in the restaurant market over the past few months, Restaurant Brands International CEO Daniel Schwartz has committed previously to opening more locations.
During 2016, the number of restaurants for Burger King increased by 4.9% and for Tim Hortons 4.5%.
In all the company, based in Oakville, Ontario, posted a $185.8 million profit, which was up from the same period one year ago of just over $119.1 million, prior to a payout of its preferred dividends. The quarter for the prior year was hurt by charges for restructuring.
After making payments for its preferred dividends, the restaurant parent company posted per share earnings of 50 cents, which was up from 25 cents per share for the same period one year ago.
When making adjustments, earnings per share increased to just over 44 cents compared to 32 cents for the same period one year ago. Revenue was up by nearly 4% to end the period at $1.12 billion.
Analysts were expecting earnings per share of just over 41 cents with revenue coming in at just under $1.11 billion.
In 2015, Restaurant Brands was first formed when Burger King, controlled by 3G Capital Partners, acquired Canada based Tim Hortons a chain of coffee and donut restaurants. The business has worked on expanding the footprint of Tim Hortons in both the United States as well as internationally.
Shares before the opening bell on Monday were inactive, but closed on Friday at $51.41. Its shares have increased by 18% during the last three month.
RBI is one of the largest quick service restaurant business in the world with over $24 billion in sales system wide and more than 20,000 restaurants in over 100 countries and territories.