Restaurant Brands International (NYSE:QSR) Posts Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Restaurant Brands International beat Q1 expectations, reporting adjusted EPS of $0.86 versus the $0.83 estimate and revenue of $2.26 billion versus $2.24 billion expected. Revenue rose 7.3% year over year.
• The company highlighted strong operating performance and capital returns, including 3.2% comparable sales, 10.7% organic AOI growth, resumed share repurchases, and about $60 million in buybacks through April 30. Management also signaled a target of roughly $500 million in buybacks in 2026.
• Burger King U.S. and international operations were key bright spots, with Burger King U.S. comp sales up 5.8% and international comps up 5.7%. In contrast, Popeyes lagged with a 6.5% comparable-sales decline, making it a near-term concern.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR posted its earnings results on Wednesday. The restaurant operator reported $0.86 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.03, Zacks reports. The firm had revenue of $2.26 billion during the quarter, compared to the consensus estimate of $2.24 billion. Restaurant Brands International had a net margin of 9.96% and a return on equity of 33.05%. The firm's revenue for the quarter was up 7.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.75 EPS.

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

• RBI resumed share repurchases and returned significant capital to shareholders, repurchasing about $60M through April 30 (including $34M in Q1), returning ~$315M in Q1, generating nearly $200M of free cash flow, and targeting ~$500M of buybacks in 2026.
• Q1 financials were strong — 3.2% comparable sales, 6.2% system‑wide sales, 10.7% organic AOI growth, and adjusted EPS of $0.86 (up 14.6%), supporting management's 2026 outlook.
• Burger King U.S. showed clear momentum with 5.8% comps, driven by operations improvements, menu elevation (the "elevated Whopper"), marketing and franchisee alignment, and management plans to accelerate refranchising to capture further upside.
• The international business remains a growth engine — 5.7% comps and 11.1% system‑wide sales — and RBI closed the Burger King China JV with CPE (including a $350M primary capital injection), with BK China posting double‑digit comps.
• Popeyes underperformed with a 6.5% comparable‑sales decline (system sales down 3.9%); management outlined execution, menu focus, and value initiatives and expects improvement in H2 2026, but near‑term softness and execution risk remain.

Restaurant Brands International Stock Up 0.7%

Shares of Restaurant Brands International stock traded up $0.57 during trading hours on Friday, reaching $79.71. 4,159,359 shares of the company were exchanged, compared to its average volume of 3,415,087. Restaurant Brands International has a 1 year low of $61.33 and a 1 year high of $81.96. The stock's fifty day moving average is $75.55 and its 200 day moving average is $71.25. The company has a debt-to-equity ratio of 2.62, a quick ratio of 0.91 and a current ratio of 0.98. The firm has a market cap of $27.69 billion, a PE ratio of 28.07, a PEG ratio of 2.17 and a beta of 0.53.

Restaurant Brands International Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Tuesday, June 23rd will be paid a $0.65 dividend. The ex-dividend date is Tuesday, June 23rd. This represents a $2.60 annualized dividend and a dividend yield of 3.3%. Restaurant Brands International's payout ratio is 91.55%.

Restaurant Brands International News Summary

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

• Positive Sentiment: Restaurant Brands International beat Q1 expectations, posting $0.86 EPS versus $0.83 expected and revenue of $2.26 billion versus $2.24 billion expected, with revenue up 7.3% year over year. Article Title
• Positive Sentiment: Analysts lifted targets after the earnings beat, including Scotiabank to $83, TD Cowen to $79, Wells Fargo to $80, and Robert W. Baird to $80, which supports the stock’s recent strength. Article Title
• Neutral Sentiment: Scotiabank maintained a “sector perform” rating and other firms kept neutral/equal-weight views, suggesting the rally is being tempered by cautious longer-term expectations. Article Title
• Neutral Sentiment: Restaurant Brands also declared a quarterly dividend of $0.65 per share, reinforcing its income appeal for investors. Article Title

Insider Transactions at Restaurant Brands International

In other Restaurant Brands International news, insider Jill Granat sold 25,000 shares of the stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $75.09, for a total value of $1,877,250.00. Following the sale, the insider owned 478,845 shares of the company's stock, valued at $35,956,471.05. This trade represents a 4.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jacqueline Friesner sold 30,000 shares of Restaurant Brands International stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $74.61, for a total value of $2,238,300.00. Following the completion of the transaction, the insider owned 165,727 shares of the company's stock, valued at $12,364,891.47. The trade was a 15.33% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 441,490 shares of company stock valued at $32,375,140 in the last 90 days. Insiders own 1.25% of the company's stock.

Institutional Trading of Restaurant Brands International

Large investors have recently made changes to their positions in the company. Baupost Group LLC MA lifted its stake in Restaurant Brands International by 103.8% in the third quarter. Baupost Group LLC MA now owns 8,252,862 shares of the restaurant operator's stock worth $529,337,000 after acquiring an additional 4,203,300 shares during the last quarter. State Street Corp increased its position in shares of Restaurant Brands International by 9,477.4% in the 2nd quarter. State Street Corp now owns 2,997,344 shares of the restaurant operator's stock valued at $198,711,000 after purchasing an additional 2,966,048 shares during the last quarter. EdgePoint Investment Group Inc. raised its holdings in shares of Restaurant Brands International by 11.7% in the 4th quarter. EdgePoint Investment Group Inc. now owns 16,645,003 shares of the restaurant operator's stock valued at $1,135,844,000 after purchasing an additional 1,741,795 shares in the last quarter. Morgan Stanley lifted its position in shares of Restaurant Brands International by 24.2% during the 4th quarter. Morgan Stanley now owns 8,429,121 shares of the restaurant operator's stock worth $575,119,000 after purchasing an additional 1,641,870 shares during the last quarter. Finally, Canada Pension Plan Investment Board lifted its position in shares of Restaurant Brands International by 56.4% during the 2nd quarter. Canada Pension Plan Investment Board now owns 2,855,081 shares of the restaurant operator's stock worth $189,510,000 after purchasing an additional 1,029,500 shares during the last quarter. 82.29% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. JPMorgan Chase & Co. raised their price target on Restaurant Brands International from $77.00 to $80.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Scotiabank boosted their price objective on Restaurant Brands International from $81.00 to $83.00 and gave the company a "sector perform" rating in a report on Thursday. Robert W. Baird increased their target price on Restaurant Brands International from $72.00 to $80.00 and gave the stock a "neutral" rating in a research note on Thursday. CL King set a $81.00 target price on Restaurant Brands International in a report on Thursday. Finally, BMO Capital Markets dropped their target price on Restaurant Brands International from $83.00 to $81.00 and set an "outperform" rating for the company in a research report on Friday, February 13th. Sixteen investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $83.08.

Restaurant Brands International Company Profile

Restaurant Brands International Inc NYSE: QSR is a global quick-service restaurant company formed through the combination of established brands. The company's principal holdings include Burger King, Tim Hortons and Popeyes, each of which operates under its own brand identity and menu. Restaurant Brands International's business is centered on developing and expanding these franchised restaurant systems, supporting franchisees with brand management, supply chain coordination, and marketing programs.

RBI's restaurants offer a range of quick-service food and beverage products: Burger King is known for its flame-grilled hamburgers and sandwiches, Tim Hortons for coffee, baked goods and breakfast items, and Popeyes for Louisiana-style fried chicken and seafood.

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