International restaurant brand Quarterly earnings and revenue reported Thursday beat expectations, driven by strong international growth.

However, Burger King’s progress in revamping its U.S. restaurants slowed last year due to rising costs, and the chain will no longer meet a 2028 deadline to modernize 85% of its domestic stores, executives said. The news disappointed investors, with the company’s shares falling 6% in afternoon trading.

What’s this company reports Comparison with Wall Street expectations for the period ended Dec. 31, according to a survey of analysts by London Stock Exchange Group (LSEG):

• Earnings per share: 96 cents adjusted, 95 cents expected
• Revenue: $2.47 billion, vs. $2.41 billion expected

Restaurant Brands reported fourth-quarter net profit to shareholders of $113 million, or 34 cents a share, down from $259 million, or 79 cents a share, in the same period last year.

Excluding transaction costs, restructuring charges and other items, the company reported adjusted earnings of 96 cents per share.

net sales Increased 7.4% to $2.47 billion. Restaurant Brands’ organic revenue rose 6.5%, excluding currency fluctuations and sales from planned refranchised restaurants.

The company’s same-store sales rose 3.1%, driven by strong international growth.

Outside the United States and Canada, Restaurant Brands’ same-store sales increased 6.1%. International Burger King restaurants account for the majority of the segment, with same-store sales rising 5.8%.

Analysts expect international same-store sales growth of just 3.7%, according to StreetAccount estimates.

Restaurant Brands plans to continue growing its overseas business. November, company announced Plans to establish joint venture for Burger King China to accelerate expansion. Chinese alternative asset manager CPE owns approximately 83% of Burger King China under the terms of the deal completed in late January. Restaurant Brands retains a minority stake of approximately 17%, as well as a seat on the board of directors.

Burger King reported overall same-store sales growth of 2.7%, above StreetAccount’s forecast of 2.4%. The burger chain has started running promotions such as spongebob menu The service was launched in December and is designed to drive home traffic growth.

“We don’t need to rely on deep discounts to drive revenue growth,” Restaurant Brands executive chairman Patrick Doyle said on the company’s conference call.

Restaurant Brands CEO Josh Kobza told CNBC the chain offers $5 combos for two and $7 combos for three to cater to budget-conscious diners, but it’s keeping its value offerings consistent, helping Burger King save on marketing expenses.

Burger King is also dealing with rising costs, particularly beef prices. Executives say beef costs will rise 20% by 2025, putting pressure on profits for the chain and its franchisees.

Popeyes is a laggard in the restaurant brand portfolio. Same-store sales fell 4.8%, worse than Wall Street’s forecast of a 2.4% decline.

But the company plans to revive the struggling fried chicken chain. To win back customers, Popeye’s needs to focus on its operations and core menu items, such as its famous chicken sandwich, Kobza said.

In November, Restaurant Brands hired Burger King veteran Peter Perdue to lead the chain’s U.S. and Canadian operations, and last month it named Popeyes veteran Matt Rubin as the chain’s newest chief marketing officer.

“We’ve been very upfront about sales not being where they should be and you’re going to see us make leadership changes in 2025 and earlier this year,” Doyle said. “So I believe the steps we’re taking, particularly the renewed focus on operations, consistency and brand standards, will translate into better results over time.”

Restaurant Brands plans to share more ideas for growing the business at its Investor Day on February 26 in Miami.