Popeyes Parent Company Cites Chicken Wings for Mixed Q3 Results
Restaurant Brands International, parent of Popeyes, reported a dip in same-store sales for the chicken chain, attributing it to menu adjustments.
Some say cooking chicken wings is an art—for Popeyes, it was a significant factor in mixed third-quarter results for parent company Restaurant Brands International.
Same-store sales for Popeyes locations in the U.S. decreased by 2.2%, a slump executives linked to changes in the menu offering. "As part of our efforts to streamline operations and refocus on our core menu, we made a deliberate decision to scale back our wings offering," stated Restaurant Brands CEO Joshua Kobza during a recent earnings call. He added that satisfaction with the chain's core chicken is at a record high and that traffic trends have shown sequential strengthening.
The chain had previously reintroduced wings with several flavor options, including garlic parmesan, ghost pepper, signature hot, and honey BBQ. However, Popeyes reduced these offerings in the last quarter, leading to customer dissatisfaction. Online forums showed users lamenting the fewer choices and expressing confusion over the perceived reduction in flavors. Some customers also noted the discontinuation of the signature hot wings.
Despite the challenges at Popeyes, Burger King, another brand under Restaurant Brands International, saw positive performance with an 8.4% increase in U.S. same-store sales last quarter.
Overall, Restaurant Brands International reported $2.53 billion in revenue, slightly below the anticipated $2.54 billion. The company's stock saw a 2% decline on Thursday morning following the announcement.
Popeyes did note growth in international markets, particularly in the UK and India, with gradual expansion in China. "We see it in the long lines and the amazing guest reviews and feedback when we enter, and we’re going to continue hitting the gas on Popeyes International," said Sami Siddiqui, the company's CFO. Restaurant Brands acquired Popeyes China in 2024 for $15 million, identifying the country as a significant long-term market opportunity.
In other industry news, McDonald's announced plans to introduce hand-breaded tenders, a move some market analysts have deemed potentially unsuccessful. The Post has reached out to Popeyes for comment.