Restaurant Brands International Inc. Common Shares
QSR · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $1.09 EPS for Sep 2026 across 8 estimates, ranging $1.05 to $1.19.
QSR Jun 2026
- 3.88%
- $1.03
- $1.07
- —
- $2.52B
Reported results
- $2.52B
- $716.00M
- 28.41%
- $665.00M
- $1.45
Highlights
- Earnings beat: Adjusted diluted EPS was $1.07, ahead of the $1.03 consensus by 3.9%, while adjusted operating income rose 6.7% to $715 million.
- Broad sales acceleration: Comparable sales increased 3.8%, up from 2.4% a year ago and 3.2% in Q1 2026; system-wide sales grew 6.4% to $12.7 billion.
- Burger King led the print: BK comparable sales rose 8.6%, including 8.5% in the U.S.; segment adjusted operating income increased 13.2% to $137 million.
- International remained strong: International comparable sales increased 5.5%, system-wide sales grew 10.7% to $5.6 billion, and adjusted operating income rose 13.2% to $194 million.
- Consolidated growth: Revenue increased 4.5% to $2.52 billion, operating income rose 48.4% to $716 million, and net income from continuing operations grew 152.1% to $665 million.
- GAAP benefited from tax and foreign exchange: The effective tax rate was negative 12.3% versus 24.8% a year ago, reflecting discrete deferred-tax benefits; other operating income was $26 million versus $149 million of expense last year, mainly from FX.
- Popeyes was the weak spot: Comparable sales declined 5.1%, including a 5.2% decline in the U.S.; segment adjusted operating income fell 4.5% to $63 million.
- Capital return and leverage: RBI returned $435 million through dividends and repurchases, including $137 million of share repurchases in the quarter; net leverage improved to 4.1x from 4.6x a year ago.
- Guidance maintained: RBI remains on track for 8% organic adjusted operating income growth in 2026 and continues to target 3%+ comparable sales and 8%+ organic adjusted operating income growth over 2024-2028.
Analysis
Restaurant Brands International’s second quarter was a beat-led operating print, with adjusted diluted EPS of $1.07 versus $1.03 expected and $0.94 a year ago. Revenue increased 4.5% year over year to $2.52 billion, adjusted operating income rose 6.7% to $715 million, and adjusted EBITDA increased 6.3% to $810 million. Sequentially, revenue grew from $2.26 billion in Q1, operating income from $606 million to $716 million, and GAAP net income from $445 million to $665 million. Adjusted EPS increased from an estimated $0.86 in Q1, derived from the six-month total, to $1.07.
The defining feature was Burger King’s continued recovery, with 8.6% comparable sales growth and 13.2% segment AOI growth despite a net restaurant decline. International provided the other major growth engine, delivering 5.5% comparable sales growth and 13.2% AOI growth, helped by higher royalties and the resumption of BK China royalty revenue. Popeyes remained a clear offset, with comparable sales down 5.1% and AOI down 4.5%. The sharp GAAP earnings increase also reflected a negative 12.3% effective tax rate and a $26 million gain in other operating income, making adjusted measures more representative of the underlying performance. RBI maintained its 2026 outlook and returned $435 million to shareholders.
Quarterly operating result
RBI delivered a stronger second quarter on both demand and earnings. Comparable sales accelerated to 3.8% from 2.4% a year ago and 3.2% in the first quarter, while system-wide sales grew 6.4% on a constant-currency basis to $12.7 billion. The restaurant base expanded 2.9% year over year to 33,156 locations.
- Revenue: Total revenue rose 4.5% to $2.52 billion, led by higher supply chain sales, royalties and system-wide sales. Revenue was $2.26 billion in Q1 2026 and $2.41 billion in Q2 2025.
- Operating performance: Adjusted operating income increased 6.7% to $715 million and adjusted EBITDA rose 6.3% to $810 million. Organic adjusted EPS grew 12.3% to $1.07.
- GAAP earnings: Operating income climbed 48.4% to $716 million and diluted EPS from continuing operations was $1.45, versus $0.58 a year ago and $0.97 in Q1.
- Earnings quality: The GAAP increase was amplified by a $73 million tax benefit, compared with $87 million of tax expense a year ago, and by a $26 million gain in other operating income versus $149 million of expense last year.
Burger King recovery
Burger King was the central operating story. The U.S. turnaround continued to translate into materially higher franchise economics, even as the company refranchises restaurants acquired through Carrols and the system count declines.
- Comparable sales: BK comparable sales rose 8.6%, including 8.5% in the U.S., versus 1.3% and 1.5%, respectively, a year ago.
- System scale: System-wide sales grew 8.2% to $3.19 billion, while the restaurant count was 6,992, down from 7,046 a year ago; net restaurant growth was negative 0.8%.
- Segment earnings: BK revenue increased 2.3% to $397 million and adjusted operating income rose 13.2% to $137 million, primarily from higher franchise and property revenue.
- Reclaim the Flame: RBI had funded $194 million of up to $550 million planned for Royal Reset investments through June 30, 2026, within the broader program of up to $700 million through 2028.
International monetisation
International supplied a second durable growth contribution, combining mid-single-digit comparable sales with more than 10% system growth. The quarter also benefited from the new BK China joint venture structure, which restored royalty revenue in the International segment without consolidating the business.
- Sales momentum: International comparable sales increased 5.5%, including 5.4% for Burger King, while system-wide sales grew 10.7% to $5.62 billion.
- Restaurant growth: The International system reached 16,570 restaurants, up from 15,767 a year ago, with net restaurant growth of 5.1%.
- Revenue and AOI: Segment revenue increased 9.8% to $274 million and adjusted operating income rose 13.2% to $194 million; excluding a $4 million FX benefit, revenue still increased $20 million.
- BK China: RBI resumed recognizing primarily royalty revenue after deconsolidating BK China into a joint venture in January 2026, retaining a 17% equity interest.
Brand divergence
The portfolio was not uniformly strong. Popeyes weakened further, while Tim Hortons was broadly stable and Firehouse benefited mainly from unit expansion rather than comparable-sales momentum.
- Popeyes: Comparable sales fell 5.1%, including a 5.2% decline in the U.S.; system-wide sales declined 3.1% to $1.53 billion and adjusted operating income fell to $63 million from $66 million.
- Tim Hortons: Comparable sales increased only 0.1%, down from 3.4% a year ago, but net restaurant growth improved to 1.1% from 0.3%; adjusted operating income rose 3.2% to $287 million.
- Firehouse: Comparable sales increased 0.4% versus a 0.8% decline a year ago, while restaurant count rose 8.1% to 1,482 and adjusted operating income increased 11.4% to $17 million.
- Restaurant Holdings: RH adjusted operating income was $17 million, broadly flat year over year, as higher Burger King sales were offset by company-restaurant expenses and investments in international start-up businesses.
Cash return and outlook
RBI continued to direct substantial cash toward shareholders while modestly reducing leverage. The company held its operating algorithm and 2026 guidance unchanged.
- Cash generation: Six-month operating cash flow was $757 million versus $567 million a year ago, and free cash flow was $648 million versus $465 million.
- Shareholder returns: RBI paid dividends and repurchased shares totaling $435 million in the quarter; share repurchases were $137 million, with $829 million remaining under the authorization at June 30.
- Balance sheet: Net debt was $12.55 billion and net leverage was 4.1x, down from 4.6x a year ago; cash was $1.06 billion and revolver availability was $1.25 billion.
- Guidance: The company continues to expect 2026 segment G&A of $600-$620 million, adjusted interest expense of $500-$520 million, total capex and cash inducements of approximately $400 million, and RH AOI of $10-$20 million.
