(Toronto) Restaurant Brands International (RBI) posted third-quarter profit of US$364 million on Friday, while continuing to report cost increases for raw materials, labor and energy.
The owner of Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs noted that its most recent result compared to a profit of US530 million for the third quarter of last year.
The decrease observed during the quarter ended September 30 was primarily attributable to tax expenses and an increase in equity compensation, non-cash incentive compensation expenses and interest expense.
The group specializing in fast food also highlighted that its revenues had increased to 1.83 billion US dollars, after having stood at 1.72 billion US dollars a year earlier.
RBI highlighted that this revenue growth came even though the war in Ukraine and the COVID-19 pandemic had triggered accelerating inflation, volatility in foreign exchange rates and rising interest rates, elements which could now be exacerbated by the conflict in the Middle East.
Geopolitical tensions could also have an adverse impact on its activities, if the company and its franchisees are not able to adjust their prices sufficiently without harming consumer demand.