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, reflecting strong execution and cost discipline.

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

• Burger King U.S. delivered 5.8% comparable sales growth, significantly outperforming the industry, driven by operational improvements and brand elevation efforts.

• Resumed share repurchases in March 2026 and declared a $0.65 dividend per share for Q2 2026.

Financial highlights

• Total revenues increased 7.4% year-over-year to $2.26 billion, with system-wide sales up 6.2% and net restaurant growth of 2.6%.

• Adjusted EBITDA rose 10.0% to $706 million; adjusted EPS grew 14.6% to $0.86.

• Free cash flow for the quarter was $169 million, with $53 million in CapEx and $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.

• Effective tax rate decreased to 7.9% from 26.9%, driven by discrete tax benefits.

Outlook and guidance

• Expects 8%+ organic AOI growth for 2026 and 3%+ comparable sales growth through 2028.

• 2026 guidance: 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.

• Plans to repurchase $500 million in shares during 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.

• Sufficient liquidity projected for the next twelve months, supported by cash flow and $1.25 billion in revolving credit availability.