By Dhirendra Tripathi
Investing.com -- Shares of Restaurant Brands (NYSE:QSR), the owner of Burger King and Tim Hortons restaurants, traded 5% higher in premarket Tuesday after the company beat fourth-quarter estimates for both revenue and profit.
A large, vaccinated population, encouraged by easing restrictions and a weakening virus, helped the restaurant chain book a 14% rise in revenue to $1.6 billionin the three months through the end of 2021. The return of many workers to their offices also aided sales, as did strong digital sales growth.
For the year, revenue grew more than 15% to $5.8 billion.
The company said it will move to a new master franchisee in China once its business disputes in the country are settled this year.
“Additionally, this agreement will provide for us and our partner to make equity contributions to the Burger King business in China. We believe the agreement will position both the Popeyes and Burger King brands to accelerate growth in China in the upcoming years,” the company said in a statement.
Adding to the gains in the stock was a dividend of 54 cents and a promise by the company to raise the payout in 2022.
Adjusted profit per share in the fourth quarter was up 40% at 74 cents, although the comparison was helped by a loss recognized on an early debt redeption a year earlier.