Business & Investment

Your Tim Hortons breakfast sandwich is changing!

Restaurant Brands International (TSX: QSR)(NYSE: QSR) I have a holiday message for Canadians: Change breakfast sandwiches. For those who don’t know, Restaurant Brands is the name behind the iconic Tim Hortons breakfast sandwich.

What has changed and why it is important

The changes sound subtle, but for many it’s not. Tim Hortons is replacing the sandwich omelet-style egg patties with freshly cracked eggs. Breakfast sandwiches are one of the most popular items on the menu, and their changes have already received criticism and admiration.

More important than how to make eggs why Changes have been made.

This subtle change represents a type of menu adjustment that is common throughout the industry. As an example, Popeye’s is the banner of another restaurant brand. The brand was tuned for several years before the famous chicken sandwich was released. This time too, a similar long process was adopted.

Restoring the image (and sales) of Tim Hortons, which has fallen behind its sibling brand over the past few quarters, is all part of the company’s efforts. As an example, in the most recent quarter, Tim Hortons branded system-wide sales growth fell 13.7% over the same period in 2019.

Part of that reduction may be due to an ongoing COVID-19 pandemic. Still, Burger King’s overall system sales were much lower this quarter (down 7.9% compared to 2019). Meanwhile, Popeye’s achieved a staggering 21.5% overall system sales growth over the same period. (Remember my tinkering points above).

Overall, the company reported $ 8.335 billion in system-wide sales in the last quarter, earning $ 320 million.

What does this mean for investors in 2021?

Restaurant Brands CEO Jose Cil traveled across Canada last year and talked to franchise owners about what needs to be changed at Tim Hortons. Changes to jump start growth and profitability will take some time to slow down.

in short, Tweak more At Tim Hortons. Over the past few years, Tim Hortons has been a dizzying array of limited-time items that definitely didn’t have a place on the menu. Adding freshly cracked eggs to Tim Hortons’ breakfast sandwich is the first of many improvements seen in 2021.

In other words, Tim Hortons is currently the weakest link in the Restaurant Brands family, and it will take some time to restore it. Fortunately, the company is doing the right thing to make that change.

Should you buy (Not only Tim Hortons breakfast sandwiches, but also in stock)

Restaurant Brands are well-oiled machines. The company is diversifying across three major brands and will continue to aggressively enter new markets. The company also refuses to settle for its glory, but instead fixes the underlying problem of the brand as a whole.

If that’s not enough, Restaurant Brands offers a delicious quarterly dividend, which currently yields 3.39%.As a result, the inventory is Better return investment It is on the market.

In my opinion, a small position in a restaurant brand is beneficial to almost any portfolio.

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Your Tim Hortons breakfast sandwich is changing!

https://www.fool.ca/2020/12/31/your-tim-hortons-breakfast-sandwich-is-changing/ Your Tim Hortons breakfast sandwich is changing!

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