Yahoo Finance Restaurant Brands' sub sandwich shop chain is on fire
Firehouse Subs looks to be selling a hell of a lot of extra meaty sub sandwiches in what is an ultra-competitive fast-food market right now.
New Firehouse parent company Restaurant Brands said Tuesday global fourth quarter same-store sales for the brand surged 14.7% from a year ago. Global same-store sales surged 20.9% in 2021.
"These impressive results are a testament to the strength of the brand, it's unique menu offerings, it's purpose led public safety commitment, and its seasoned management team. It's all of these elements that make us so confident in Firehouse Subs long-term growth and expansion opportunity," Restaurant Brands CEO Jose Cil said on an earnings call.
For some perspective, burger slinging fast-food rival McDonald's saw global same-store sales rise 12.3% in the fourth quarter. Firehouse also outperformed the brands in Restaurant Brands' own portfolio.
Global same-store sales for Tim Horton's rose 10.3% in the fourth quarter, Burger King was up 11.3% and Popeyes fell 0.4%.
It was in late November 2021 that Cil pulled the trigger on his first major acquisition since taking over as CEO in 2019 by plunking down $1.1 billion to acquire Firehouse Subs. The brand joins Burger King, Tim Horton's (acquired in 2014) and Popeyes (acquired in 2017) under the Restaurant Brands umbrella.
A key consideration in the deal, Cil told Yahoo Finance Live in an interview at the time, is the consumer affinity for sub sandwiches.
"Subs are great. I think they are very comforting food and people in the U.S. and beyond are very accustomed to them. It forms part of the daily routines of many Americans and many around the world. And so it's a big category in the quick-service restaurant space. They have a great-tasting product. Their portions are quite substantial. And the product quality is exceptional," Cil said.
Firehouse Subs has 1,213 stores, mostly in the United States.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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