Restaurant Brands International (QSR) investor relations material

Strategic vision and growth targets

• Aims to be 99% franchised by 2028, targeting 5%+ net restaurant growth and double-digit shareholder returns, with over 8% organic Adjusted Operating Income growth achieved in 2024 and 2025.

• Three building blocks for 5%+ net restaurant growth: US/Canada (300-400 net new units/year), China (300-400/year), and International excluding China (1,100/year).

• Growth to be driven by international expansion, especially in China, and strong performance in top 10 global markets, with India, UK, Mexico, France, and Japan expected to deliver 700 units/year and paybacks under 4.5 years.

• Firehouse Subs, Tim Hortons, and Popeyes are key contributors to North American and international growth; Burger King China turnaround and new JV with CPE expected to add over 200 net new units annually by 2028.

• Algorithm of 3%+ comparable sales and 5%+ net restaurant growth supports 8%+ organic Adjusted Operating Income growth through 2028.

Operational improvements and brand initiatives

• Burger King’s Reclaim the Flame plan invested $700M in marketing, tech, and modernization, driving four years of industry comparable sales outperformance and improved franchisee profitability.

• Sizzle remodels and tech upgrades, including AI-driven BK Assistant, are enhancing operations and customer satisfaction.

• Tim Hortons’ Back to Basics plan led to five years of positive same-store sales and strong franchisee relationships.

• Popeyes is refocusing on core menu, service, and value to regain positive same-store sales.

• Firehouse Subs accelerated net restaurant growth 5x since acquisition, with strong unit economics and digital expansion.

Financial outlook and capital allocation

• Organic adjusted operating income expected to grow ~8% annually through 2028, supported by ramping net restaurant growth, royalty rate tailwinds, and G&A leverage.

• Plans to return over $1.6 billion to shareholders in 2026 via dividends and share repurchases, with $500 million in buybacks that year; majority of excess free cash flow earmarked for share repurchases.

• CapEx and cash inducements to step down to ~$300M annually from 2028, with half allocated to Tim Hortons.

• Dividend payout ratio to move toward 60%, with 52 consecutive quarters of growth.

• Net leverage targeted at low to mid 3x by 2028, aiming for investment-grade status.