UPDATE 2-Burger King/Tim Hortons sales growth slows as consumers hold back

Thu Aug 4, 2016 1:27pm EDT
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* Q2 revenue $1.04 bln vs est of $1.05 bln

* Adjusted profit $0.41/share vs est of $0.34

* Shares up 2 pct (Adds comments form analysts and conference call, share move)

By Anet Josline Pinto

Aug 4 (Reuters) - Restaurant Brands International Inc , owner of Burger King and the Tim Hortons coffee and doughnut chain, reported lower-than-expected quarterly sales growth at established stores as U.S. consumers reduce spending on eating out.

U.S.-listed shares of Restaurant Brands, which reported a better-than-expected profit for the second quarter on lower costs, were up 2 percent in early afternoon trade. They fell as much as 2.2 percent earlier in the day.

A fall in grocery prices is deterring consumers from eating out. Restaurants, on the other hand, have not been able to cut prices, despite the fall in food prices, given the high costs of complying with minimum wage increases.

McDonald's Corp, Dunkin Brands Group Inc and Starbucks Corp also reported disappointing results for the latest quarter, citing a slowdown in customer traffic.

Total comparable sales at Burger King rose 0.6 percent in the quarter ended June 30, compared with 6.7 percent a year earlier.   Continued...