Restaurant Brands International Inc. reported increased sales and profits in its second quarter, buoyed by strong performance at its U.S. Burger King locations, even as growth slowed at Tim Hortons in Canada. The Toronto-based fast-food company posted overall comparable sales growth of 3.8 percent for the quarter ended June 30, with an 8.6 percent jump at Burger King offsetting flat or declining results at its other chains.

Burger King’s performance marked a notable milestone in the brand’s ongoing four-year turnaround effort, which includes substantial investments in restaurant remodels, menu improvements, and heightened advertising. The company recently updated its signature Whopper burger as part of these efforts. Comparable sales, which measure performance excluding newly opened outlets, rose significantly at Burger King in the quarter, making it the only division within Restaurant Brands to report substantial gains. Executive Chair Patrick Doyle said that while progress has been considerable, further work remains to update additional locations and refine the menu.

In contrast, Tim Hortons experienced a marked slowdown in comparable sales growth, posting a mere 0.1 percent increase versus 3.6 percent during the same period last year. Tim Hortons remains a key driver for the company, accounting for about 40 percent of operating profits. CEO Josh Kobza attributed the weakness to an uncharacteristic calendar and the absence of major new platform launches seen in the previous year. Although total revenues at Tim Hortons rose, much of the increase was driven by higher commodity prices affecting supply chain sales to franchisees.

While new product introductions delivered mixed results, some items like the cheese melt and bacon melt sandwiches sold well. The company also launched new Timbit flavors tied to the FIFA World Cup, such as lime cheesecake, crème brûlée, and cappuccino, though these did not meet expectations. Kobza expressed optimism about recent beverage launches, highlighting matcha drinks popular during afternoon hours and the introduction of “Soda Swirls,” a flavored soda beverage. The rollout of new fountain machines at Tim Hortons locations is facilitating these product innovations aimed at boosting customer traffic.

Firehouse Subs saw flat comparable sales, while Popeyes experienced a 5.1 percent decline. The fast-food sector overall has increased focus on novel menu items and value deals to attract consumers facing inflationary pressures. However, results across the industry have varied; for example, McDonald’s recently reported second-quarter sales growth that fell short of analysts’ estimates.

For the quarter, Restaurant Brands posted revenue of US$2.5 billion, up 4.6 percent from the prior year. Net income attributable to common shareholders more than doubled to US$507 million, or $1.46 per share, compared with $189 million, or 58 cents per share, a year earlier. Adjusted net income rose to $490 million, or $1.07 per diluted share, reflecting improvement over $432 million, or 94 cents per share, in the same period last year. The results included a swing to profit from other operating activities compared to a loss from such activities in the previous year.