Restaurant Brands International (QSR) investor relations material

Executive summary

• Q3 system-wide sales grew 6.2% to $12.972B and global comparable sales rose 3.8%; net restaurant growth was 3%.

• Revenue was $2.525B, operating income $696M and net income from continuing operations $704M; adjusted operating income was $737M, up 5.0%.

• Adjusted EPS rose 6.9% to $1.10; organic adjusted operating income growth was 6.7%, the fifth consecutive quarter with same-store sales growth above 3%.

• Burger King and International led growth; Tim Hortons returned to solid growth, while Popeyes comparable sales remained negative and its recovery timeline lengthened.

• Priorities include improving restaurant operations, aligning offerings with guest preferences, international expansion and simplifying the business through refranchising.

Financial highlights

• Q3 revenue was $2.525B vs. $2.449B; nine-month revenue was $7.309B vs. $6.968B. Q3 operating income was $696M vs. $663M.

• Q3 net income was $704M vs. $436M and diluted continuing-operations EPS was $1.54 vs. $0.96; results included a $133M income tax benefit.

• Adjusted operating income was $737M vs. $702M; adjusted diluted EPS was $1.10 vs. $1.03, up 6.9% or 8.6% excluding specified FX and Restaurant Holdings impacts.

• Q3 organic adjusted operating income grew 6.7%, including $11M of Tim Hortons U.S. CPG tariff refunds, largely offset by higher organic segment G&A; YTD organic growth was 7.8%.

• Q3 free cash flow exceeded $500M; nine-month operating cash flow was $1.308B and capital expenditures were $181M.

Outlook and guidance

• FY2026 organic adjusted operating income growth remains on track at 8%; guidance is $600M–$620M for segment G&A excluding RH and $10M–$20M for RH adjusted operating income.

• FY2026 adjusted interest expense is expected at $500M–$520M, approximately flat YoY; capex and cash inducements are guided at $400M.

• FY2026 adjusted tax rate is expected at 18%–19%, likely toward the lower end; Tim Hortons supply-chain margins are expected roughly in line with 2025.

• Refranchising is expected to reach ~200 restaurants in 2026 and accelerate in 2027, supporting the planned RH sunset by year-end 2027; most remaining Carrols restaurants are expected to enter core reporting in 2028.

• Popeyes expects a longer-than-planned path back to positive comparable sales; international development and Burger King China are expected to support unit growth in 2027 and beyond.