Key Highlights

  • Adjusted EPS of USD 1.10 topped the consensus estimate of USD 1.08 and rose 6.9% from USD 1.03.
  • Revenues of USD 2.53 billion grew from USD 2.45 billion but trailed the consensus estimate of USD 2.55 billion.
  • Global comparable sales rose 3.8%, led by Burger King US at 8.4%, while Popeyes comparable sales fell 1.8%.
  • Organic adjusted Operating Income grew 6.7%, and net Leverage improved to 4.0x from 4.4x a year earlier.

Restaurant Brands International Inc. (NYSE:QSR) reported third quarter 2026 adjusted diluted EPS of USD 1.10, ahead of the consensus estimate of USD 1.08, compared with USD 1.03 a year earlier. Total revenues were USD 2,525 million, up from USD 2,449 million but below the consensus estimate of USD 2.55 billion. GAAP diluted EPS from continuing operations was USD 1.54, versus USD 0.96, helped by an income tax benefit of USD 133 million in the quarter compared with an expense of USD 94 million a year earlier.

Brand Performance Splits Widely

System-wide sales reached USD 12,972 million, up 6.2% in constant currency, with net restaurant growth of 3.0% to 33,401 restaurants. Chief Executive Officer Josh Kobza said the quarter was the fifth in a row with comparable sales above 3%. Burger King US comparable sales rose 8.4% and Burger King segment adjusted operating income climbed to USD 136 million from USD 123 million. International comparable sales grew 3.9% with net restaurant growth of 5.6%, and segment adjusted operating income rose to USD 205 million from USD 189 million.

Tim Hortons comparable sales rose 1.5%, with Canada at 1.8%, and its adjusted operating income was USD 317 million, which included about USD 11 million of Tariff refunds tied to tariffs incurred last year. Popeyes comparable sales fell 1.8% and adjusted operating income slipped to USD 58 million from USD 63 million. Management cited a less incremental Big Box promotion and a deliberate scaling back of wings. Firehouse Subs comparable sales grew 1.5%.

Guidance and Capital Framework

The company reiterated 2026 targets of 8% organic adjusted operating income growth, segment G&A excluding Restaurant Holdings of USD 600 million to USD 620 million, Restaurant Holdings adjusted operating income of about USD 10 million to USD 20 million, adjusted net interest expense of USD 500 million to USD 520 million, and total capex and cash inducements near USD 400 million. The long term algorithm for 2024 to 2028 calls for 3%+ comparable sales and 8%+ organic adjusted operating income growth.

The company returned USD 1.3 billion to shareholders year to date through dividends and repurchases, and the chief financial officer said full year repurchases target about USD 500 million. A major rating agency raised the corporate rating to Ba2 in September, and management reiterated a goal of Investment grade leverage by 2028, in the low to mid 3x net leverage range.

Calendar and Metrics for the Fourth Quarter

A fourth quarter Dividend of USD 0.65 per share is payable January 5, 2027 to holders of record on December 22, 2026. The preliminary fourth quarter Earnings Call is scheduled for February 11, 2027. Tim Hortons and Burger King are scheduled to host conventions in the fourth quarter, which affects Franchise Revenue timing but has an immaterial net adjusted operating income impact.

Other figures to follow include the USD 198 million funded so far toward up to USD 550 million of Burger King Royal Reset investments, USD 751 million left under the repurchase authorization as of October 23, and Popeyes comparable sales after the wings change. Total Liquidity was about USD 2.2 billion, including roughly USD 1 billion of cash.