Restaurant Brands International lost a whopper in the fourth quarter on the closing costs relating to its Double-Double deal that would see Burger King and Tim Hortons merge.
According to its fourth-quarter earnings, Restaurant Brands lost $154.2 million, or $2.52 per share. At the same time last year, the company posted earnings of $66.8 million, or just 19 cents per share.
Revenue, meanwhile, rose to $416.3 million because of an increase in sales and new locations at both chains – comparable store sales spiked 4.1 percent for Tim Hortons, while Burger King’s comparable store sales were up three percent. Last year, revenue was $265.2 million.
In the latest quarter, operating costs and expenses, including $94 million in merger and restructuring costs, reached $1 billion. The multinational corporation reported that it does expect to experience extra administrative and general expenses this year because of the merger.
On Friday, shares tumbled 1.5 percent to $38.74. Since the start of the year, the stock has shed less than one percent.
“With the creation of Restaurant Brands International, a new global powerhouse in the quick-service-restaurant industry, we believe both brands are well positioned for long-term sustainable growth and we are excited to introduce the iconic Tim Hortons brand to the rest of the world,” Chief Executive Daniel Schwartz said in a statement.
This is the first time investors have seen corporate numbers since the merger transpired.
Last summer, Burger King owners proposed to acquire the iconic Canadian coffee company in a deal that has been valued at $20 billion. After approvals from an array of bureaucrats, regulators and shareholders, the deal was finalized. The combined company maintains a workforce of 18,000 employees in 100 countries.
As part of the merger, Tim Hortons announced last month that it would be cutting approximately 350 jobs in its corporate head office in Oakville, Ontario and in regional offices across Canada and in the United States.