Despite seeing a boost from quirky new products like Chicken Rings and Mac 'N Cheetos, Restaurant Brands International saw same-store sales fall short of analyst expectations on Thursday.
The owner of Burger King and Tim Hortons has posted its seventh consecutive quarter of positive same-store sales growth, with Burger King up 0.6 percent and Tim Hortons posting growth of 2.7 percent.
However, both chains fell short of analysts' forecasts, according to the StreetAccount. Burger King was expected to post same-store sales growth of 2.2 percent and Tim Hortons was expected to post growth of 3.5 percent.
The company cited soft sales in the U.S. and Canada as the reason for Burger King's lower than expected same-store sales growth.
"This is in-line with the recent numbers from rivals like McDonald's and Yum Brands, both of which saw growth moderate," Neil Saunders, CEO of Conlumino, said in a statement. "This trend is being driven, primarily, by a slowdown in spending on eating out by American consumers.">
Shares of the company remained unchanged in premarket trading.
"We ended the second quarter with solid system-wide sales growth at both of our iconic brands, Tim Hortons and Burger King, driven by growth in our global restaurant footprint and compelling product launches," Daniel Schwartz, CEO of Restaurant Brands International, said in a statement.
The company posted second-quarter earnings of 41 cents on $1.04 billion in revenue. The company was expected to report second-quarter earnings of about 35 cents a share on $1.05 billion in revenue, according to a consensus estimate from Thomson Reuters.
Revenues for the second-quarter missed analyst expectations "primarily as a result of unfavorable FX movements," Schwartz said.
Shares in the company are up nearly 20 percent year to date.