Restaurant Brands International (QSR) Q4 2025 earnings summary

Executive summary

• Delivered comparable sales growth of 2.4%, net restaurant growth of 2.9%, and system-wide sales growth of 5.3% for 2025, with organic adjusted operating income (AOI) growth of 8.3% and adjusted EPS growth of 10.7%.

• Tim Hortons, International, and Burger King outperformed their categories, with Tim Hortons and International achieving 19 consecutive quarters of positive comparable sales.

• Burger King China transitioned to a joint venture with CPE, with $350 million injected for growth and plans to double the footprint by 2030; Burger King China classified as held for sale in 2025, with a $114M non-cash charge recognized.

• Popeyes faced a decline in comparable sales and franchisee profitability, prompting leadership changes and renewed operational focus.

• Firehouse Subs saw strong net restaurant growth and franchisee profitability, especially in Canada.

Financial highlights

• System-wide sales grew 5.3% year-over-year; organic AOI up 8.3%; adjusted EPS up 10.7% to $3.69; total revenues reached $9,434M for 2025, up 12.2% YoY.

• Free cash flow reached nearly $1.6 billion, with $1.1 billion returned to shareholders via dividends and buybacks.

• Net leverage ratio ended at 4.2x, meeting the low 4x target and improving from 4.6x YoY.

• Tim Hortons Canada average four-wall EBITDA was approximately CAD 295,000; Burger King US franchisee profitability was $185,000, down from $205,000 due to beef costs; Popeyes franchisee profitability at $235,000; Firehouse over $100,000.

• Adjusted Operating Income reached $2,584M for 2025 (up 8.3% YoY); Adjusted EBITDA was $2,970M for 2025 (up 6.7% YoY).

Outlook and guidance

• Targeting a fourth consecutive year of 8% organic AOI growth in 2026, with long-term targets of 3%+ comparable sales growth, 8%+ organic AOI growth, and 5%+ net restaurant growth by 2028.

• Dividend target increased by 5% to $2.60 per share for 2026; Q1 2026 dividend declared at $0.65 per share.

• 2026 CapEx and cash inducements projected at $400 million, mainly for Tim Hortons and Carrols remodels.

• 2026 guidance: Segment G&A (excluding RH) of $600–$620M, RH Segment G&A ~$100M, adjusted net interest expense $500–$520M.

• Expecting modestly positive net restaurant growth from Burger King China and ramping towards 5% unit growth by the end of the algorithm period.