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

Key Points

• RBI beat quarterly earnings expectations: Adjusted EPS was $1.07 versus the $1.04 consensus, while revenue reached $2.52 billion, up 4.6% year over year and in line with estimates.
• Burger King and international operations drove growth: Burger King U.S. same-store sales increased 8.5%, international comparable sales rose 5.5%, and system-wide sales grew 6.4%. Management maintained its outlook for 8% organic adjusted operating-income growth in 2026.
• Performance was mixed across brands, but finances improved: Popeyes U.S. same-store sales fell 5.2% and Tim Hortons Canada was nearly flat, while RBI generated $501 million in free cash flow, returned $435 million to shareholders, reduced leverage to 4.1 times, and declared a $0.65 quarterly dividend.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR released its earnings results on Thursday. The restaurant operator reported $1.07 EPS for the quarter, beating analysts' consensus estimates of $1.04 by $0.03, FiscalAI reports. The company had revenue of $2.52 billion during the quarter, compared to the consensus estimate of $2.52 billion. Restaurant Brands International had a return on equity of 33.74% and a net margin of 13.12%.Restaurant Brands International's quarterly revenue was up 4.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.94 earnings per share.

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

• Strong Q2 performance: Same-store sales rose 3.8%, system-wide sales increased 6.4%, organic Adjusted Operating Income grew 6.7%, and Adjusted EPS increased 12.9% to $1.07. Management reiterated its expectation for 8% organic Adjusted Operating Income growth in 2026.
• Burger King U.S. continued its turnaround momentum with 8.5% same-store sales growth, outperforming the burger QSR industry by more than nine percentage points. Management cited ongoing gains from Whopper marketing, value offerings, remodels, service improvements, and further menu elevation as sources of future growth.
• International remained a major growth engine, delivering 5.5% comparable sales growth, 5.1% net restaurant growth, and 10.7% system-wide sales growth. Management highlighted improving unit economics in markets including China and India, with average paybacks of roughly 4.5 years across its top 10 growth markets.
• Brand performance was mixed: Tim Hortons Canada posted only 0.1% same-store sales growth as Q2 marketing underperformed, while Popeyes U.S. same-store sales declined 5.2%. Management expects Popeyes to return to positive comparable sales in the second half, supported by value promotions, core-menu focus, and operational improvements.
• Capital allocation and leverage improved. RBI generated $501 million of Q2 free cash flow, returned $435 million to shareholders, and reduced net leverage to 4.1 times; the company remains on track to repurchase approximately $500 million of stock in 2026 and reach investment-grade leverage by 2028.

Restaurant Brands International Trading Up 1.5%

QSR traded up $1.07 on Friday, reaching $73.99. 2,635,053 shares of the company's stock were exchanged, compared to its average volume of 2,417,505. Restaurant Brands International has a twelve month low of $61.33 and a twelve month high of $81.96. The company's 50 day moving average is $73.75 and its 200-day moving average is $73.62. The company has a debt-to-equity ratio of 2.55, a quick ratio of 0.90 and a current ratio of 0.99. The company has a market cap of $25.84 billion, a price-to-earnings ratio of 18.85, a PEG ratio of 2.16 and a beta of 0.50.

Restaurant Brands International Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Friday, September 18th will be given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date of this dividend is Friday, September 18th. Restaurant Brands International's dividend payout ratio is 69.89%.

Hedge Funds Weigh In On Restaurant Brands International

A number of hedge funds have recently made changes to their positions in the business. Capital Analysts LLC boosted its position in shares of Restaurant Brands International by 20.6% during the 4th quarter. Capital Analysts LLC now owns 924 shares of the restaurant operator's stock worth $63,000 after acquiring an additional 158 shares in the last quarter. UMB Bank n.a. raised its position in Restaurant Brands International by 50.4% during the fourth quarter. UMB Bank n.a. now owns 639 shares of the restaurant operator's stock valued at $44,000 after purchasing an additional 214 shares in the last quarter. Cresset Asset Management LLC lifted its stake in Restaurant Brands International by 4.4% during the third quarter. Cresset Asset Management LLC now owns 5,336 shares of the restaurant operator's stock worth $346,000 after purchasing an additional 225 shares during the last quarter. Captrust Financial Advisors lifted its stake in Restaurant Brands International by 1.9% during the fourth quarter. Captrust Financial Advisors now owns 15,136 shares of the restaurant operator's stock worth $1,033,000 after purchasing an additional 289 shares during the last quarter. Finally, Coldstream Capital Management Inc. boosted its holdings in shares of Restaurant Brands International by 11.6% in the 3rd quarter. Coldstream Capital Management Inc. now owns 3,393 shares of the restaurant operator's stock valued at $218,000 after purchasing an additional 354 shares in the last quarter. Hedge funds and other institutional investors own 82.29% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on QSR shares. TD Cowen upped their price objective on Restaurant Brands International from $79.00 to $80.00 and gave the company a "hold" rating in a research report on Thursday, July 9th. Weiss Ratings raised shares of Restaurant Brands International from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, July 8th. Scotiabank upped their target price on shares of Restaurant Brands International from $81.00 to $83.00 and gave the company a "sector perform" rating in a report on Thursday, May 7th. JPMorgan Chase & Co. lifted their price target on shares of Restaurant Brands International from $77.00 to $80.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Finally, CL King set a $81.00 price objective on shares of Restaurant Brands International in a research report on Thursday, May 7th. Sixteen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, Restaurant Brands International has a consensus rating of "Moderate Buy" and a consensus target price of $83.83.

Trending Headlines about Restaurant Brands International

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

• Positive Sentiment: Q2 earnings beat expectations: Adjusted EPS reached $1.07, above the roughly $1.03–$1.04 analyst consensus and up from $0.94 a year earlier. Revenue rose 4.6% year over year to $2.52 billion, in line with estimates. Restaurant Brands International earnings beat as Burger King's U.S. business soars
• Positive Sentiment: Burger King is driving growth: Burger King U.S. comparable sales increased 8.5%, helping consolidated systemwide sales grow 6.4%. International comparable sales also rose 5.5%, while RBI reported double-digit earnings growth and reaffirmed its target for 8% organic adjusted operating-income growth in 2026. Restaurant Brands International Inc. Reports Second Quarter 2026 Results
• Positive Sentiment: Improving competitive position: Burger King reportedly reclaimed the No. 2 spot among U.S. burger chains by systemwide sales, overtaking Wendy’s. The revamped Whopper and broader turnaround efforts are helping attract customers and gain market share as some rivals experience slower growth. Burger King overtakes Wendy's as the nation's second-largest burger chain
• Positive Sentiment: Shareholder returns: RBI declared a quarterly dividend of $0.65 per share, or $2.60 annualized, implying a yield of approximately 3.6%. The company also returned $435 million to shareholders through dividends and share repurchases.
• Negative Sentiment: Price targets were reduced: Scotia lowered its target from $83 to $81 and maintained a “sector perform” rating. Piper Sandler cut its target from $85 to $81 but retained an “overweight” rating. Both targets still imply roughly 9% upside, but the reductions suggest more cautious expectations after the earnings report.

About Restaurant Brands International

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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