Restaurant Brands International (QSR) Q1 2026 earnings summary

Executive summary

• Achieved 6.2% system-wide sales growth and 3.2% comparable sales growth year-over-year, with system-wide sales reaching $11.5 billion and net restaurant growth of 2.6% to 32,985 locations as of March 31, 2026.

• Adjusted Operating Income (AOI) increased 13.0% to $610 million, with organic AOI growth of 10.7% and mid-teens EPS expansion in Q1 2026.

• Net income from continuing operations more than doubled to $445 million, and diluted EPS from continuing operations rose to $0.97, driven by higher operating income and a lower effective tax rate.

• Resumed share repurchases in March for the first time in over two years, buying back $34 million in Q1 and declaring a $0.65 dividend per share for Q2 2026.

• Closed the Burger King China joint venture with CPE, resulting in deconsolidation and a $350 million capital injection to fund development over the next five years.

Financial highlights

• Total revenues increased 7.4% year-over-year to $2.26 billion, driven by higher supply chain sales and increased system-wide sales across key segments.

• Adjusted EPS increased 14.6% year-over-year to $0.86 per share, driven by AOI growth and lower net interest expense.

• Free cash flow for the quarter was $169 million, up from $54 million a year ago, with $315 million returned to shareholders via dividends and buybacks.

• Ended Q1 with $2.3 billion in liquidity, $1.01 billion in cash, and a net leverage ratio of 4.2x, improved from 4.7x last year.

• Segment G&A declined by $12 million year-over-year, excluding Restaurant Holdings.

Outlook and guidance

• On track to deliver 8%+ organic AOI growth and approximately 1,800 net new restaurants per year by 2028, with 3%+ comparable sales growth through 2028.

• Guidance for 2026: Segment G&A (excluding RH) between $600M–$620M, RH AOI of $10–$20M, adjusted interest expense $500M–$520M, and total capex/cash inducements around $400M.

• Tim Hortons supply chain margins expected to remain in line with 2025 levels.

• Share repurchases targeted at $500 million for the full year 2026, with $940 million remaining under current authorization as of April 30, 2026.

• Management expects continued benefit from recent intra-group reorganizations, with an additional $170 million discrete tax benefit anticipated in Q2 2026.