Restaurant Brands Tops Estimates, Raises Dividend, But Shares Fall On Lower Operating Income

Restaurant Brands International Inc. (NYSE:QSR), parent company of Tim Hortons’ and Burger King, reported Thursday results for the fourth quarter and full year 2025.

Total revenue rose to $2.466 billion in the quarter from $2.296 billion a year earlier and to $9.434 billion for 2025 from $8.406 billion.

The company’s Q4 adjusted EPS of 96 cents exceeded the 95 cents estimate, and sales of $2.466 billion, topping the $2.413 billion estimate.

Restaurant Brands also reported a decline in Q4 earnings, with diluted GAAP EPS from continuing operations at 60 cents. That’s down from 79 cents a year ago.

Income from operations decreased to $621 million from $635 million, while net income from continuing operations fell to $274 million from $361 million. The owner of Popeyes also posted a net loss of $119 million from discontinued operations, with diluted net income per share of $0.34.

For the full year, diluted GAAP EPS from continuing operations dropped to $2.63 from $3.18, while adjusted diluted EPS rose to $3.69 from $3.34.

• System-wide sales grew 5.8% in Q4 to $12.131 billion, with consolidated comparable sales rising 3.1%, driven by a 6.1% increase at INTL, 2.8% at Tim Hortons Canada, and 2.6% at Burger King US. Net restaurant growth was 2.9%, bringing the total number of restaurants to 33,041 by year-end.
• Tim Hortons’ revenue was $1.135 billion in the fourth quarter, with adjusted operating income of $274 million
• Burger King’s revenue was $383 million, with adjusted operating income of $121 million; RBI cited the non-recurrence of $41 million in Fuel the Flame expenses incurred in the prior year.
• Popeyes’ revenue was $196 million, with adjusted operating income of $62 million.
• Firehouse Subs’ revenue was $60 million, with adjusted operating income of $15 million.
• INTL revenue was $263 million, with adjusted operating income of $191 million; results reflected the absence of $9 million of revenues from BK China in 2025.
• Restaurant Holdings’ revenue was $480 million, with adjusted operating income of $11 million.

Cash Flow And Balance Sheet

Operating cash flow from continuing operations was $1.714 billion in 2025, and free cash flow was $1.449 billion. Cash and cash equivalents were $1.163 billion at Dec. 31, 2025, and total debt was $13.669 billion.

Net leverage was 4.2x at year-end. Interest expense, net, was $125 million in the fourth quarter and $516 million for 2025.

RBI said Burger King China was classified as held for sale and reported as discontinued operations for 2025. It said a joint venture with CPE closed Jan. 30, 2026, with CPE owning about 83% and RBI about 17%, and RBI recognized a non-cash charge of $114 million during 2025 related to its Burger King China holdings

Dividend And Guidance

The company declared a first-quarter 2026 dividend of $0.65 per common share, up from $0.62 in the prior quarter, payable April 2, 2026, and announced a 2026 annual dividend target of $2.60 per share.

For 2026, RBI expects segment G&A (excluding RH) of $600 million to $620 million, RH segment G&A of approximately $100 million, adjusted interest expense, net, of $500 million to $520 million, and total capex and cash inducements of around $400 million.

CEO Josh Kobza highlighted how the company “delivered” a third consecutive year of roughly 8% organic Adjusted Operating Income growth.

“As we enter 2026, I’m encouraged by the stronger, more focused foundation we’ve built for the long term,” he added.

Price Action: QSR shares are trading 5.39% lower at $66.89 at the last check on Thursday.

Image: Shutterstock