Restaurant Brands International (NYSE:QSR) Posts Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Restaurant Brands International beat earnings expectations: Q3 EPS was $1.10 versus the $1.08 consensus, while revenue rose 3.1% year over year to $2.52 billion but came in below the $2.55 billion forecast.
• Burger King drove growth, with U.S. same-store sales increasing 8.4% and the brand reclaiming the No. 2 U.S. burger position. International comparable sales also rose 3.9%, though Popeyes remained weak with same-store sales down 1.8%.
• Shares fell 1.9% after the results, despite management maintaining its outlook for roughly 8% organic adjusted operating-income growth in 2026. RBI declared a quarterly dividend of $0.65 per share, equivalent to an approximately 3.6% yield.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR released its quarterly earnings data on Thursday. The restaurant operator reported $1.10 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.08 by $0.02, FiscalAI reports. Restaurant Brands International had a return on equity of 33.43% and a net margin of 13.12%. The company had revenue of $2.52 billion during the quarter, compared to analysts' expectations of $2.55 billion. During the same period last year, the firm posted $1.03 earnings per share. The business's revenue was up 3.1% on a year-over-year basis.

Here are the key takeaways from Restaurant Brands International's conference call:

• Strong Q3 performance: Same-store sales rose 3.8%, net restaurant growth was 3%, and system-wide sales increased 6.2%, driving 6.7% organic adjusted operating income growth and 6.9% adjusted EPS growth.
• Burger King U.S. momentum accelerated, with same-store sales up 8.4% and the brand reclaiming the No. 2 position in the U.S. burger category. Management cited continued opportunities from restaurant remodels, menu upgrades, operations, and family-focused collaborations.
• Popeyes remained a weak spot, with same-store sales down 1.8%; management said the return to positive comparable sales will take longer than previously expected. The $6 Big Box promotion was less incremental than anticipated, while reducing the wings offering created additional year-over-year pressure.
• International growth remains strong, with 3.9% same-store sales growth, 5.6% net restaurant growth, and improving economics in markets including China, Japan, Korea, Brazil, and Germany. Popeyes international system sales have nearly doubled in two years to more than $2 billion across over 50 markets.
• RBI returned $569 million to shareholders in Q3, including $274 million in share repurchases, and remains on track to repurchase roughly $500 million for the year. The company also reiterated its goal of reaching investment-grade leverage by 2028 while progressing toward sunsetting the Restaurant Holdings segment by the end of 2027.

Restaurant Brands International Trading Down 1.9%

Shares of QSR stock traded down $1.40 during mid-day trading on Thursday, reaching $73.12. 5,502,610 shares of the stock traded hands, compared to its average volume of 2,684,111. The stock's fifty day simple moving average is $74.77 and its two-hundred day simple moving average is $73.92. Restaurant Brands International has a 1-year low of $64.52 and a 1-year high of $81.96. The company has a market cap of $25.50 billion, a price-to-earnings ratio of 19.01, a price-to-earnings-growth ratio of 2.18 and a beta of 0.52. The company has a quick ratio of 0.92, a current ratio of 1.01 and a debt-to-equity ratio of 2.49.

Restaurant Brands International Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 5th. Shareholders of record on Tuesday, December 22nd will be given a $0.65 dividend. The ex-dividend date is Tuesday, December 22nd. This represents a $2.60 annualized dividend and a yield of 3.6%. Restaurant Brands International's dividend payout ratio (DPR) is currently 69.89%.

More Restaurant Brands International News

Here are the key news stories impacting Restaurant Brands International this week:

• Positive Sentiment: QSR reported third-quarter adjusted earnings of $1.10 per share, exceeding the $1.08 analyst consensus and rising from $1.03 a year earlier. Consolidated system-wide sales increased 6.2% year over year. Restaurant Brands Beats Q3 Earnings Estimates
• Positive Sentiment: Burger King was the main growth driver, with U.S. comparable sales up 8.4%, suggesting that value promotions and the brand’s turnaround efforts are attracting more customers. International comparable sales also grew 3.9%. Restaurant Brands reports mixed results
• Positive Sentiment: Management maintained its outlook for approximately 8% organic adjusted operating-income growth in 2026 and said RBI has returned $1.3 billion to shareholders year to date through dividends and share repurchases. Restaurant Brands International Reports Third Quarter 2026 Results
• Positive Sentiment: The company declared a quarterly dividend of $0.65 per share, equivalent to $2.60 annually and a yield of approximately 3.6%. The dividend is payable January 5 to shareholders of record December 22.
• Neutral Sentiment: TD Cowen reaffirmed its “hold” rating while maintaining a $78 price target, indicating some potential upside but limited analyst conviction following the results.
• Negative Sentiment: Revenue of roughly $2.52 billion increased 3.1% year over year but fell short of expectations near $2.55 billion. The revenue miss likely overshadowed the earnings beat and contributed to the stock’s decline. Restaurant Brands Q3 Profit Exceeds Forecasts Despite Revenue Miss

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Evercore reissued an "outperform" rating and set a $88.00 target price on shares of Restaurant Brands International in a report on Friday, August 7th. Deutsche Bank Aktiengesellschaft cut their price target on Restaurant Brands International from $86.00 to $85.00 and set a "buy" rating for the company in a report on Thursday, July 9th. Morgan Stanley lifted their price objective on shares of Restaurant Brands International from $79.00 to $82.00 and gave the stock an "equal weight" rating in a research report on Thursday, October 15th. TD Cowen reiterated a "hold" rating and issued a $78.00 price objective on shares of Restaurant Brands International in a report on Thursday. Finally, Scotia dropped their price objective on shares of Restaurant Brands International from $83.00 to $81.00 and set a "sector perform" rating on the stock in a research report on Friday, August 7th. Sixteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, Restaurant Brands International presently has a consensus rating of "Moderate Buy" and a consensus price target of $83.52.

Insider Buying and Selling at Restaurant Brands International

In other news, insider Axel Schwan sold 57,574 shares of the company's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $81.14, for a total value of $4,671,554.36. Following the completion of the transaction, the insider owned 209,908 shares of the company's stock, valued at $17,031,935.12. This represents a 21.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 1.22% of the company's stock.

Restaurant Brands International Company Profile

Restaurant Brands International Inc NYSE: QSR is a global quick-service restaurant company that owns and operates a portfolio of restaurant brands, primarily through franchised and licensed locations. Its brands include Tim Hortons, Burger King, Popeyes and Firehouse Subs, which serve coffee, baked goods, burgers, chicken, sandwiches and other prepared foods.

The company was formed in 2014 through the merger of Burger King Worldwide and Tim Hortons. RBI expanded its portfolio through the acquisition of Popeyes Louisiana Kitchen in 2017 and Firehouse Restaurant Group in 2021.

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