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Shares of Chinese hotpot chain Haidilao International rose 7% in Hong Kong on Wednesday, after the company's first-half results revealed delivery revenue more than doubled.

The results, released on Tuesday, showed Haidilao's revenue rose 7.9% year-on-year to 22.34 billion yuan ($3.32 billion) in the six months to June, while core operating profit, a non-IFRS measure, rose 4.4% to 2.51 billion yuan.

Delivery was Haidilao's fastest-growing business segment, with revenue jumping 121.2% to 2.05 billion yuan, driven mainly by rapid growth in its single-serving fast-food business and the expansion of its delivery network through more local hubs.

Revenue from Haidilao-branded restaurants, which accounted for 79.9% of group sales, fell 4% to 17.84 billion yuan, mainly due to a decline in the number of self-operated restaurants.

As of the end of June, Haidilao operated 1,389 restaurants under its core hotpot brand, and 183 restaurants across 21 other catering brands.

What is driving Haidilao's growth?Revenue from other restaurant operations surged 113.1% to 1.27 billion yuan, which Haidilao attributed to the development of catering brands under its "Pomegranate Plan" to explore new catering formats and contributions from dining scenarios, including camping hotpot and late-night hotpot.

The company said its food-stall hotpot and sushi formats have developed relatively mature single-restaurant models and entered the stage of "large-scale replication," with plans to progressively scale them up from the second half of this year, becoming a significant source of revenue growth for its other restaurant operations in 2027.

In a note after the earnings, Citi said Haidilao's first-half operating profit before other income rose 13% from a year earlier, coming in 6% above its expectations.

The bank also noted that Haidilao's seafood-stall hotpot and sushi formats should start scaling up in the second half of 2026, while Haidilao-branded store openings are expected to accelerate in 2027, with likely accelerated topline growth next year. The bank maintained its buy rating.

Restaurant Brands International (QSR +3.18%) is four years into rebuilding Burger King, and the work is finally showing up in the numbers. U.S. same-store sales grew 8.5% in the second quarter, compared to just 0.8% at McDonald's in the same period.

That was the second strong quarter in a row for Burger King -- same-store sales rose by nearly 6% in the first quarter. Average unit volumes for the Whopper are up over 20% since the burger's relaunch hit menus in February.

The fast-food restaurant is taking market share, outgrowing the quick-service burger industry by more than nine percentage points as the company's Reclaim the Flame initiative rolls on.

Image source: Getty Images.

Rebuilding from the kitchen out The Burger King playbook was borrowed from Domino's Pizza, where Patrick Doyle led a major turnaround before joining Restaurant Brands International as executive chairman in 2022.

The strategy puts operations, including the food and franchisee economics, ahead of marketing and growth.

The company has remodeled over 1,000 restaurants since 2018, and plans to continue updating more of them through 2028, building on a foundation of healthier unit economics.

With the business on firmer footing, management can now focus on driving traffic through marketing campaigns centered on the elevated Whopper.

The profit driver is decelerating While Burger King's results have been improving, Tim Hortons' performance has weighed on the overall company's results. The Canadian coffee-and-donut chain posted same-store sales growth of only 0.1%, marking its fourth straight quarter of decelerating growth.

The slowdown is a big deal because Tim Hortons is the company's anchor, generating around 40% of Restaurant Brands International's operating profit.

Meanwhile, its Popeyes Louisiana Kitchen chain continues to slide. The fried chicken chain posted a 5.2% decline in U.S. same-store sales. It has been RBI's weakest brand over the past year, but management expects Popeyes to return to growth in the second half of 2026.

The international segment remains a bright spot for Restaurant Brands International, with same-store sales up 5.5%. Burger King's 19% profit share, combined with the international side at roughly 29%, means half the business is expanding, and nearly 90% of the company is growing or stable.

Today's Change

(

3.18

%) $

2.45

Current Price

$

79.55

For someone who's watched the Burger King saga unfold for more than a decade, it's nice to see the turnaround taking place. Now, management needs to get old, reliable Tim Hortons moving in the right direction. With Restaurant Brands International trading at around 18 times forward earnings and paying a dividend that yields 3.3% at the current share price, patient investors may consider this a good time to pick up shares.

Bryan White has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Domino's Pizza. The Motley Fool recommends Restaurant Brands International and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Wendy’s has lost its place as America’s runner-up to McDonald’s, ending a six-year run as the second-largest burger chain, being surpassed by a resurgent Burger King.

Burger King reclaimed the No. 2 position as its U.S. turnaround gains momentum, with domestic same-store sales jumping 8.5% in the second quarter. Wendy’s, meanwhile, reported a 7% decline in U.S. same-store sales, marking its sixth consecutive quarter of contraction.

Wendy’s new CEO Bob Wright acknowledged the chain’s problems Friday, saying its competitive edge has weakened as customers have pulled back.

“Today we are clearly not performing at our potential,” he wrote in a statement.

“Our traffic, our value proposition and franchisee economics are not meeting our expectations. We have already begun taking action across five areas that we’ve identified to drive the turnaround: rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency, and restaurants as an engine for growth.”

Burger King’s comeback is fueled by an 8.5% jump in US same-store sales, while Wendy’s saw a 7% decline. jetcityimage – stock.adobe.com McDonald’s remains the dominant U.S. burger chain by a wide margin, leaving Burger King and Wendy’s fighting for a distant second place.

Wendy’s had surpassed Burger King roughly six years ago, helped by the successful nationwide rollout of its breakfast menu. But its hold on the No. 2 spot has eroded as Burger King poured money into improving restaurants, advertising and its core menu.

Restaurant Brands International, Burger King’s parent company, launched a broad U.S. turnaround effort in late 2022 after sluggish sales. The strategy has included restaurant remodels, increased marketing spending and changes intended to improve food quality and the customer experience.

More recently, Burger King has focused on its signature Whopper.

The chain revamped the burger earlier this year, making changes to its bun, packaging, mayonnaise and other elements. Burger King U.S. and Canada President Tom Curtis told The Wall Street Journal that the improvements are helping bring customers back.

“A lot of people are saying they’re coming back for the first time in a long time,” Curtis said.

Wendy’s just got dethroned as America’s second-biggest burger chain after six years, with Burger King sizzling back into the No. 2 spot. Mahmoud Suhail – stock.adobe.com Burger King has also introduced a Whopper quality guarantee, pledging to remake an order if a customer is unhappy with it and provide another Whopper free on a future visit.

“When we asked guests where we could do better, they gave us a lot of honest feedback, and now it’s our responsibility to act on it,” Curtis wrote in a statement in July. “We’re not going to get everything right every single time, but we’re committed to listening intently and improving every day.

“When guests choose us, they expect high-quality food, orders made the way they asked, and a team that’s there when they need us. That’s what these changes are about. We’re raising the standard in our restaurants, so every Guest feels like they made the right choice.”

Curtis said the chain believes it is taking market share from competitors, including potentially McDonald’s, and sees an opportunity to turn newly won customers into regulars.

“The next generation of burger lovers are being exposed to Burger King, and that means we’ve got runway ahead for years to come,” Curtis told the Journal.

The gains underscore a sharp reversal in fortunes for two longtime rivals that have wrestled with many of the same pressures in recent years.

Wendy’s has lost its place as America’s runner-up to McDonald’s, ending a six-year run as the second-largest burger chain, being surpassed by a resurgent Burger King. FOTO_STOCKER – stock.adobe.com Both companies navigated the COVID-19 pandemic, supply-chain disruptions and rising food and labor costs before confronting increasingly price-conscious consumers frustrated by years of restaurant menu inflation.

Burger King responded with its multiyear turnaround campaign. Wendy’s, by contrast, has faced leadership turnover just as restaurant traffic weakened and beef costs added pressure to its business.

Longtime Wendy’s CEO Todd Penegor retired in 2024 after eight years at the helm. Former PepsiCo executive Kirk Tanner succeeded him but left a little more than a year later to become CEO of Hershey.

Wendy’s CFO Ken Cook then served as interim chief executive before the company named Wright, the former CEO of Potbelly, to the permanent job in May.

“I returned to Wendy’s because I believe we can fix our issues and I am excited to work with our team and our franchisees to drive a strong turnaround,” Wright wrote in Friday’s release of second quarter results.

TickerSecurityLastChangeChange %MCDMCDONALD’S CORP.274.48-1.78-0.64%QSRRESTAURANT BRANDS INTERNATIONAL INC.73.89+0.97+1.33%WENTHE WENDY’S CO.7.69+0.30+4.06%SHAKSHAKE SHACK71.13+0.89+1.27%JACKJACK IN THE BOX INC.17.58+0.20+1.15%YUMYUM! BRANDS INC.150.76-1.52-1.00% He said Wendy’s recent problems have hurt customer traffic and put pressure on restaurant economics, an increasingly important issue for a largely franchised chain whose operators must absorb higher costs while competing aggressively for value-conscious diners.

Burger King’s improvement also comes as McDonald’s works through challenges in its own U.S. operation. McDonald’s has been revamping its burgers, testing new menu items and looking for ways to improve food quality, service and value.

Still, Burger King’s move ahead of Wendy’s does not put it close to overtaking the Golden Arches.

McDonald’s accounted for about 48% of the U.S. burger market in 2024, according to Barclays data. Wendy’s held an estimated 11.4% share at the time, compared with about 10% for Burger King.

Restaurant Brands International Inc. (QSR) Q2 2026 Earnings Call August 6, 2026 8:30 AM EDT

Company Participants

Kendall Peck - Head of Investor Relations
Joshua Kobza - Chief Executive Officer
Sami Siddiqui - Chief Financial Officer
J. Doyle - Executive Chairman

Conference Call Participants

Brian Bittner - Oppenheimer & Co. Inc., Research Division
Dennis Geiger - UBS Investment Bank, Research Division
David Palmer - Evercore ISI Institutional Equities, Research Division
Danilo Gargiulo - Bernstein Institutional Services LLC, Research Division
John Ivankoe - JPMorgan Chase & Co, Research Division
Sara Senatore - BofA Securities, Research Division
Brian Mullan - Piper Sandler & Co., Research Division
Andrew Charles - TD Cowen, Research Division
Gregory Francfort - Guggenheim Securities, LLC, Research Division

Presentation

Operator

Good morning, and welcome to Restaurant Brands International's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Kendall Peck, RBI's Vice President of Treasury and Investor Relations. Please go ahead.

Kendall Peck
Head of Investor Relations

Thank you, operator. Good morning, everyone, and welcome to Restaurant Brands International's earnings call for the quarter ended June 30, 2026. Joining me on the call today are Restaurant Brands International's Executive Chairman, Patrick Doyle; CEO, Josh Kobza; and CFO, Sami Siddiqui. Following remarks from Josh, Sami and Patrick, we will open the call to questions.

Today's discussion may include forward-looking statements, which are subject to risks detailed in the press release issued this morning and in our SEC filings. We will also reference non-GAAP financial measures, reconciliations of which can be found in the press release and trending schedules available on our website. As a reminder, organic adjusted operating income growth is on a constant currency basis and excludes results from the Restaurant Holdings segment. For calendar planning purposes, our preliminary Q3 earnings call is scheduled for the morning of October 29, 2026.

Consolidated System-wide Sales grow 6.4% year-over-year, including 10.7% in International
Comparable Sales accelerated to 3.8%, including 8.5% at BK US and 5.5% at International
RBI returns $435 million of capital to shareholders via dividends and share repurchases
RBI remains on track for 8% organic Adjusted Operating Income growth in 2026

, /PRNewswire/ -- Restaurant Brands International Inc. ("RBI") (NYSE: QSR) (TSX: QSR) (TSX: QSP) today reported financial results for the second quarter ended June 30, 2026. Josh Kobza, Chief Executive Officer of RBI commented, "We built on our strong start to 2026 with another quarter of over 3% global comparable sales and double-digit earnings growth, led by Burger King's standout performance and continued strength at International. These results show the benefits of our diversified portfolio and that the strategy we outlined at Investor Day is working. Burger King's performance is a great example of what's possible when you invest in the fundamentals and execute well – an approach we're applying across all of our brands."

Consolidated Operational and Financial Highlights
(in US$ millions, except per share and ratio data, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

Operational Highlights

2026

2025

2026

2025

System-wide Sales Growth (a)

6.4 %

5.3 %

6.3 %

4.1 %

System-wide Sales (a)

$

12,702

$

11,853

$

24,213

$

22,349

Comparable Sales

3.8 %

2.4 %

3.5 %

1.3 %

Net Restaurant Growth

2.9 %

2.9 %

2.9 %

2.9 %

System Restaurant Count at Period End

33,156

32,229

33,156

32,229

GAAP Financials

Total Revenues

$

2,520

$

2,410

$

4,784

$

4,519

Income from Operations

$

716

$

483

$

1,322

$

918

  Income from Operations Growth

48.4 %

(27.2) %

44.0 %

(24.0) %

Net Income from Continuing Operations

$

665

$

264

$

1,110

$

487

Diluted Earnings per Share from Continuing Operations

$

1.45

$

0.58

$

2.42

$

1.07

Financial Highlights (b)

Adjusted Operating Income (AOI)

$

715

$

668

$

1,324

$

1,208

  Organic AOI Growth

6.7 %

5.7 %

8.5 %

4.3 %

Adjusted EBITDA

$

810

$

762

$

1,517

$

1,404

Adjusted Diluted Earnings per Share (Adj. EPS)

$

1.07

$

0.94

$

1.93

$

1.70

  Nominal Adj. EPS Growth

12.9 %

9.2 %

13.7 %

6.5 %

  Organic Adj. EPS Growth

12.3 %

10.3 %

11.8 %

10.0 %

Net Leverage

4.1x

4.6x

4.1x

4.6x

(a)

System-wide Sales Growth is calculated on a constant currency basis and therefore will not recalculate to the percentage change in System-wide Sales, which is reported on a nominal basis.

(b)

Non-GAAP metrics. Please refer to "Non-GAAP Financial Measures" for further detail.

Reporting Segments  

We have six operating and reportable segments, including four franchisor segments for our Tim Hortons, Burger King, Popeyes, and Firehouse Subs brands in the U.S. and Canada ("TH", "BK", "PLK", and "FHS", respectively) and a fifth franchisor segment for all of our brands in the rest of the world ("INTL"). Additionally, we have a sixth operating and reportable segment, Restaurant Holdings ("RH"), which includes the operations of Burger King restaurants acquired as part of our acquisition of Carrols Restaurant Group Inc. (the "Carrols Acquisition"), as well as our acquisition of Popeyes China ("PLK China") ("PLK China Acquisition") and Firehouse Subs Brazil ("FHS Brazil") restaurants.

RBI maintains the franchisor dynamics in its TH, BK, PLK, FHS, and INTL segments ("Five Franchisor Segments") to report results consistent with how the business will be managed long-term. This approach reflects RBI's intent to refranchise the vast majority of the Carrols Burger King restaurants and to find a new partner for PLK China and new investors for FHS Brazil and sunset the RH segment. RH results include Company restaurant sales and expenses, including expenses associated with royalties, rent, and advertising. These expenses are recognized, as applicable, as revenues in the respective franchisor segments (BK for the Carrols Burger King restaurants and INTL for PLK China and FHS Brazil restaurants) and eliminated upon consolidation.

Items Affecting Comparability 

Burger King China
On February 14, 2025, we acquired substantially all of the remaining equity interests in Burger King China ("BK China"). For 2025, BK China was classified as held for sale and reported as discontinued operations. As such, for 2025, results for BK China were not recognized in the INTL segment. However, BK China KPIs continued to be included in our INTL segment KPIs.

On January 30, 2026, we established a joint venture with CPE Alder Investment Limited, a fund managed by CPE ("CPE"), with respect to the operations of BK China (such joint venture, the "BK China JV"). CPE invested $350 million of primary capital into the BK China JV. Following the transaction, we deconsolidated BK China and began accounting for our remaining 17% equity interest in the BK China JV under the equity method of accounting and recognizing franchise revenue, primarily related to royalties, in our INTL segment. We refer to the acquisition of BK China and the subsequent establishment of the BK China JV collectively as the "BK China Transactions." 

2026 Convention Timing Impact on Franchise and Property Results
In 2025, PLK and INTL hosted conventions in Q2, BK and FHS hosted conventions in Q3, and TH did not host a convention. In 2026, PLK and FHS will host conventions in Q3, TH and BK will host conventions in Q4, and INTL will not host a convention. Convention-related revenues and expenses are recognized in each segment's Franchise and property revenues and Segment F&P expenses, respectively, and have an immaterial net AOI impact.

Supplemental Disclosures

Please review the Trending Schedules posted on the RBI Investor Relations webpage under "Financial Information" for additional disclosures, including: 

Home Market and International KPIs by Brand and Company Restaurant Count by Segment; Segment Results with Disaggregated Franchise and Property Revenues (Royalties, Property Revenue and Franchise Fees and Other Revenue); Intersegment Revenue and Expense Eliminations;  Burger King US "Reclaim the Flame" Expenditures by Quarter; and RH Burger King Carrols Restaurant-Level EBITDA Margins. TH Segment Results

Three Months Ended June 30,

Six Months Ended June 30,

(in US$ millions, unaudited)

2026

2025

2026

2025

System-wide Sales Growth (a)

0.4 %

3.9 %

1.3 %

2.1 %

System-wide Sales (a)

$

2,003

$

1,995

$

3,741

$

3,626

Comparable Sales

0.1 %

3.4 %

0.8 %

1.8 %

  Comparable Sales - Canada

0.1 %

3.6 %

0.7 %

2.0 %

Net Restaurant Growth

1.1 %

0.3 %

1.1 %

0.3 %

System Restaurant Count at Period End

4,570

4,521

4,570

4,521

Supply chain sales

$

788

$

732

$

1,474

$

1,343

Company restaurant sales

$

11

$

12

$

20

$

22

Franchise and property revenues

$

262

$

262

$

495

$

480

Advertising revenues and other services

$

76

$

78

$

145

$

142

Total revenues

$

1,137

$

1,083

$

2,134

$

1,987

Supply chain cost of sales

$

635

$

589

$

1,199

$

1,085

Company restaurant expenses

$

9

$

10

$

18

$

19

Segment F&P expenses

$

86

$

83

$

168

$

161

Advertising expenses and other services

$

90

$

93

$

172

$

159

Segment G&A

$

34

$

34

$

68

$

71

Adjustments:

Cash distributions received from equity method investments

$

4

$

4

$

7

$

7

Adjusted Operating Income

$

287

$

278

$

516

$

499

(a) System-wide Sales Growth is calculated on a constant currency basis and therefore will not recalculate to the percentage change in System-wide Sales, which is reported on a nominal basis.

For the second quarter, the increase in Total revenues was primarily driven by higher Supply chain sales due to increases in commodity prices and CPG net sales.

The increase in Adjusted Operating Income was primarily driven by revenue growth, partially offset by higher Supply chain cost of sales primarily due to higher commodity prices.

BK Segment Results

Three Months Ended June 30,

Six Months Ended June 30,

(in US$ millions, unaudited)

2026

2025

2026

2025

System-wide Sales Growth

8.2 %

1.0 %

6.9 %

(0.3) %

System-wide Sales

$       3,193

$     2,952

$       6,046

$       5,652

Comparable Sales

8.6 %

1.3 %

7.2 %

0.0 %

  Comparable Sales - US

8.5 %

1.5 %

7.2 %

0.2 %

Net Restaurant Growth

(0.8) %

(1.2) %

(0.8) %

(1.2) %

System Restaurant Count at Period End

6,992

7,046

6,992

7,046

Company restaurant sales

$           44

$          61

$           90

$         121

Franchise and property revenues (a)

$         198

$        182

$         376

$         350

Advertising revenues and other services (b)

$         155

$        144

$         295

$         273

Total revenues

$         397

$        388

$         762

$         744

Company restaurant expenses

$           39

$          57

$           82

$          111

Segment F&P expenses

$           33

$          33

$           66

$           64

Advertising expenses and other services

$         156

$        147

$         297

$         278

Segment G&A

$           31

$          31

$           64

$           67

Adjusted Operating Income

$         137

$        121

$         252

$         224

(a)

Franchise and property revenues include intersegment revenues with RH consisting of royalties and rent of $30 million and $57 million during the three and six months ended June 30, 2026, respectively, and $27 million and $55 million during three and six months ended June 30, 2025, which are eliminated in consolidation.

(b)

Advertising revenues and other services include intersegment revenues with RH consisting of advertising contributions and tech fees of $24 million and $45 million during the three and six months ended June 30, 2026, respectively, and $22 million and $42 million during the three and six months ended June 30, 2025, which are eliminated in consolidation.

As a reminder, BK segment results are presented consistently with our franchisor model. As such, results include intersegment Franchise and property revenues and Advertising revenues and other services from the Carrols Burger King restaurants included in RH (as footnoted above).

Burger King US Reclaim the Flame
Burger King is executing its multi-year "Reclaim the Flame" plan to accelerate sales growth and drive franchisee profitability. This plan includes investing up to $700 million through year-end 2028, comprised of advertising and digital investments (which were completed in 2024) and high-quality remodels and relocations, restaurant technology, kitchen equipment, and building enhancements ("Royal Reset"). As of June 30, 2026, we have funded $194 million out of up to $550 million planned toward the Royal Reset investments.

Second Quarter 2026 Results
The increase in Total revenues was primarily driven by the increase in Comparable Sales, partially offset by the net impact of refranchisings.

The increase in Adjusted Operating Income was primarily driven by higher Franchise and property revenues.

PLK Segment Results

Three Months Ended June 30,

Six Months Ended June 30,

(in US$ millions, unaudited)

2026

2025

2026

2025

System-wide Sales Growth

(3.1) %

1.6 %

(3.5) %

(0.4) %

System-wide Sales

$     1,529

$      1,578

$      2,950

$      3,053

Comparable Sales

(5.1) %

(1.4) %

(5.8) %

(2.7) %

Comparable Sales - US

(5.2) %

(0.9) %

(5.8) %

(2.4) %

Net Restaurant Growth

0.5 %

2.5 %

0.5 %

2.5 %

System Restaurant Count at Period End

3,542

3,524

3,542

3,524

Company restaurant sales

$          46

$          46

$           90

$           93

Franchise and property revenues

$          81

$          87

$         156

$         165

Advertising revenues and other services

$          72

$          77

$         143

$         147

Total revenues

$        199

$        210

$         389

$         404

Company restaurant expenses

$          41

$          40

$           79

$           79

Segment F&P expenses

$            3

$            6

$             6

$             8

Advertising expenses and other services

$          74

$          80

$         148

$         152

Segment G&A

$          18

$          19

$           36

$           40

Adjusted Operating Income

$          63

$          66

$         119

$         126

For the second quarter, the decrease in Total revenues and Adjusted Operating Income was primarily driven by the decline in Comparable Sales.

FHS Segment Results

Three Months Ended June 30,

Six Months Ended June 30,

(in US$ millions, unaudited)

2026

2025

2026

2025

System-wide Sales Growth

7.5 %

6.3 %

7.4 %

6.8 %

System-wide Sales

$       361

$       336

$        708

$        658

Comparable Sales

0.4 %

(0.8) %

0.0 %

(0.2) %

Comparable Sales - US

0.7 %

(1.1) %

0.5 %

(0.4) %

Net Restaurant Growth

8.1 %

6.4 %

8.1 %

6.4 %

System Restaurant Count at Period End

1,482

1,371

1,482

1,371

Company restaurant sales

$          12

$          11

$          23

$          22

Franchise and property revenues

$          29

$          28

$          58

$          54

Advertising revenues and other services

$          21

$          20

$          40

$          36

Total revenues

$          62

$          59

$        121

$        113

Company restaurant expenses

$          10

$            9

$          20

$          19

Segment F&P expenses

$            2

$            2

$            4

$            3

Advertising expenses and other services

$          21

$          20

$          42

$          38

Segment G&A

$          12

$          13

$          25

$          27

Adjusted Operating Income

$          17

$          15

$          31

$          26

For the second quarter, the increase in Total revenues and Adjusted Operating Income was primarily driven by the increase in restaurant count.  

INTL Segment Results

Three Months Ended June 30,

Six Months Ended June 30,

(in US$ millions, unaudited)

2026

2025

2026

2025

System-wide Sales Growth (a)

10.7 %

9.8 %

10.9 %

9.3 %

System-wide Sales (a)

$      5,616

$      4,992

$    10,768

$      9,360

Comparable Sales

5.5 %

4.2 %

5.6 %

3.4 %

Comparable Sales - INTL - Burger King

5.4 %

4.1 %

5.4 %

3.4 %

Net Restaurant Growth

5.1 %

5.4 %

5.1 %

5.4 %

System Restaurant Count at Period End

16,570

15,767

16,570

15,767

Franchise and property revenues

$         253

$         228

$         488

$         428

Advertising revenues and other services

$           22

$           21

$           40

$           40

Total revenues

$         274

$         250

$         528

$         468

Segment F&P expenses

$             3

$             9

$          (11)

$           14

Advertising expenses and other services

$           24

$           23

$           46

$           45

Segment G&A

$           52

$           47

$         103

$           98

Adjusted Operating Income

$         194

$         172

$         390

$         310

(a) System-wide Sales Growth is calculated on a constant currency basis and therefore will not recalculate to the percentage change in System-wide Sales, which is reported on a nominal basis

For the second quarter, the increase in Total revenues was primarily driven by higher royalty revenues from Burger King and Popeyes restaurants resulting from the increase in System-wide Sales, as well as the resumption of royalty revenues from BK China. Results also reflect a favorable FX Impact of $4 million. Excluding the FX Impact, Total revenues increased by $20 million.

The increase in Adjusted Operating Income was driven by revenue growth, partially offset by an increase in Segment G&A primarily due to higher compensation-related expenses. Results also reflect a favorable FX Impact of $2 million. Excluding the FX Impact, Adjusted Operating Income increased by $20 million.

RH Segment Results

Three Months Ended June 30,

Six Months Ended June 30,

(in US$ millions, unaudited)

2026

2025

2026

2025

System-wide Sales

$         506

$         469

$         954

$         895

System-wide Sales - BK US

$         493

$         464

$         932

$         887

System-wide Sales - INTL

$           13

$             5

$           23

$             8

Comparable Sales

9.0 %

2.9 %

6.8 %

1.0 %

Comparable Sales - BK US

9.2 %

2.9 %

6.9 %

1.0 %

System Restaurant Count at Period End

1,104

1,044

1,104

1,044

System Restaurant Count at Period End - BK US

994

1,012

994

1,012

System Restaurant Count at Period End - INTL

110

32

110

32

Total revenues

$         506

$         469

$         953

$         901

Food, beverage and packaging costs

$         154

$         134

$         287

$         255

Restaurant wages and related expenses

$         154

$         152

$         300

$         297

Restaurant occupancy and other expenses (a)

$         128

$         120

$         250

$         233

Company restaurant expenses

$         435

$         406

$         836

$         785

Advertising expenses and other services (b)

$           27

$           24

$           50

$           45

Segment G&A

$           27

$           23

$           51

$           48

Adjusted Operating Income

$           17

$           16

$           16

$           23

Note: RH KPIs are shown consistently with RBI's reporting calendar, but in 2025, results from BK Carrols restaurants in the statements of operations were shown consistently with the Carrols reporting calendar which for the three and six months ended June 30, 2025 were from March 31, 2025 to June 29, 2025 and from December 30, 2024 to June 29, 2025, respectively. 

(a)

Restaurant occupancy and other expenses include intersegment royalties and property expenses of $31 million and $58 million during the three and six months ended June 30, 2026, respectively, and $27 million and $55 million for the three and six months ended June 30, 2025, which are eliminated in consolidation. 

(b)

Advertising expenses and other services include intersegment advertising expenses and tech fees of $24 million and $45 million during the three and six months ended June 30, 2026, respectively, and $22 million and $42 million for the three and six months ended June 30, 2025, which are eliminated in consolidation.

The RH segment includes results from (i) Burger King restaurants acquired as part of the Carrols Acquisition and (ii) PLK China and FHS Brazil restaurants. RBI is actively working to refranchise the Carrols Burger King restaurants, and as a result, RH segment results reflect the impact of refranchisings as well as incremental investments in the PLK China and FHS Brazil start-up businesses.

For the second quarter, the increase in Total revenues was primarily driven by an increase in BK US Comparable Sales and an increase in PLK China restaurant count, partially offset by BK US refranchisings.

Adjusted Operating Income remained relatively flat as revenue growth was offset by an increase in Company restaurant expenses. The increase in Company restaurant expenses reflects higher BK US Company restaurant expenses, primarily driven by increased sales and depreciation and amortization expense, as well as expenses related to scaling our international start-up businesses.     

Cash and Liquidity
The RBI Board of Directors has declared a dividend of $0.65 per common share and partnership exchangeable unit of RBI LP for the third quarter of 2026. The dividend will be payable on October 2, 2026 to shareholders and unitholders of record at the close of business on September 18, 2026.

On August 6, 2025, our Board of Directors approved a share repurchase program authorizing the repurchase of up to $1,000 million of our common shares from September 15, 2025 through September 30, 2027. For the three months ended June 30, 2026, we repurchased 1,821,167 of our common shares for $137 million, excluding excise taxes. Of these repurchases, 13,782 common shares had not yet settled as of June 30, 2026 and therefore were not retired at that date. As of June 30, 2026, we had $829 million remaining under the share repurchase authorization.

Subsequent Events
Subsequent to June 30, 2026 through July 31, 2026, we repurchased 463,385 of our common shares for $35 million and as of July 31, 2026 had $794 million remaining under the share repurchase authorization.

2026 Financial Guidance
For 2026, RBI continues to expect:

Segment G&A (excluding RH) for 2026 between $600 million and $620 million; RH AOI of approximately $10 to $20 million; Adjusted Interest Expense, net between $500 million and $520 million; and  Consolidated capital expenditures, tenant inducements and incentives (including RH), or "Total Capex and Cash Inducements" of around $400 million. Long-Term Algorithm
RBI continues to expect the following long-term consolidated performance on average, from 2024 to 2028:

3%+ Comparable Sales; and 8%+ organic Adjusted Operating Income growth. In addition, RBI continues to expect to reach 5%+ Net Restaurant Growth towards the end of its algorithm period.

Investor Conference Call
We will host an investor conference call and webcast at 8:30 a.m. Eastern Time on Thursday, August 6, 2026, to review financial results for the second quarter ended June 30, 2026. The earnings call will be broadcast live via our investor relations website at http://rbi.com/investors and a replay will be available for a limited time following the release. The dial-in number is 1 (833) 461-5787 for U.S. callers, 1 (365) 657-4084 for Canadian callers, and 1 (585) 542-9983 for callers from other countries. For all dial-in numbers please use the following access code: 686849151.

Contacts:
Investors: [email protected]
Media: [email protected]

About Restaurant Brands International Inc.
Restaurant Brands International Inc. is one of the world's largest quick service restaurant companies with nearly $49 billion in annual system-wide sales and over 33,000 restaurants in more than 120 countries and territories. RBI owns four of the world's most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®. These independently operated brands have been serving their respective guests, franchisees and communities for decades. Through its Restaurant Brands for Good framework, RBI is improving sustainable outcomes related to its food, the planet, and people and communities.

RBI's principal executive offices are in Miami, Florida. In North America, RBI's brands are headquartered in their home markets where they were founded decades ago: Canada for Tim Hortons and the U.S. for Burger King, Popeyes and Firehouse Subs. To learn more about RBI, please visit the company's website at www.rbi.com.

Forward-Looking Statements
This press release and our investor conference call contain certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties.

These forward-looking statements include statements about our expectations or beliefs regarding (i) the impact of macroeconomic pressures and currency fluctuations on our and our franchisees' results of operations and business; (ii) our remodel program and refranchising efforts; (iii) future share repurchases; (iv) leverage and free cash flow, including our path to achieving investment-grade status; (v) our and our franchisees' future operational and financial performance, including our performance against our long-term algorithm; (vi) certain tax matters, including our estimates with respect to tax matters and their impact on future periods, and any costs associated with contesting tax liabilities; (vii) our future financial obligations, including capital expenditures and dividend payments; (viii) efforts to identify long-term partners for Popeyes China and investors for FHS Brazil and the subsequent sunset of the RH segment; (ix) refranchising of restaurants acquired in the Carrols Acquisition; (x) commodity prices; (xi) certain accounting matters, including the impact of changes in accounting standards and the assumptions underlying our critical accounting estimates; (xii) our growth opportunities and our ability to accelerate net restaurant growth, and (xiii) our plans and strategies for each of our brands to enhance operations and drive long-term, sustainable growth. The factors that could cause actual results to differ materially from our expectations are detailed in our filings with the Securities and Exchange Commission and applicable Canadian securities regulatory authorities, such as our annual and quarterly reports and current reports on Form 8-K, and include the following: (1) the effectiveness of our marketing, advertising and digital programs and franchisee support of these programs; (2) the effectiveness of our operational and culinary initiatives; (3) increased commodity prices; (4) significant and rapid fluctuations in interest rates and in the currency exchange markets and the effectiveness of our hedging activity; (5) changes in applicable tax laws or interpretations thereof, and our ability to accurately interpret and predict the impact of such changes or interpretations on our financial condition and results; (6) our supply chain operations; (7) our reliance on franchisees, including master franchisees and subfranchisees, to accelerate restaurant growth and execute their development commitments (including for BK China); (8) our relationship with, and the success of, our franchisees and risks related to our franchised business model; (9) our franchisees' financial stability and their ability to access and maintain the liquidity necessary to operate their businesses; (10) evolving legislation and regulations, including in the area of franchise and labor and employment law; (11) global economic or other business conditions that may affect the desire or ability of our guests to purchase our products, such as inflationary pressures, high unemployment levels, declines in median income growth, consumer confidence and consumer discretionary spending and changes in consumer perceptions of dietary health, food safety, brand identity and value; (12) our ability to refranchise restaurants acquired in the Carrols Acquisition and to identify and successfully consummate agreements with new partners for PLK China and new investors for FHS Brazil when we plan to do so, and our ability to subsequently sunset the RH segment; (13) the ability to access liquidity under our credit facilities and derivatives, including counterparty risks; (14) our indebtedness, which could adversely affect our financial condition and prevent us from fulfilling our obligations; (15) tariffs and their impact on economic conditions or our business; (16) our ownership and leasing of real estate; (17) our ability to successfully estimate the impact of certain accounting matters, including changes to factors underlying our critical accounting estimates and the price and pace of refranchisings; and (18) risks related to unforeseen events, such as natural disasters or pandemics.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In millions of U.S. dollars, except per share data, Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenues:

Supply chain sales

$          788

$          732

$        1,474

$        1,343

Company restaurant sales

617

600

1,176

1,158

Franchise and property revenues

793

760

1,515

1,423

Advertising revenues and other services

322

318

619

595

Total revenues

2,520

2,410

4,784

4,519

Operating costs and expenses:

Supply chain cost of sales

635

589

1,199

1,085

Company restaurant expenses

508

498

985

966

Franchise and property expenses

139

144

258

274

Advertising expenses and other services

369

364

710

675

General and administrative expenses

181

188

361

379

(Income) loss from equity method investments

(2)

(5)

(4)

(10)

Other operating expenses (income), net

(26)

149

(47)

232

Total operating costs and expenses

1,804

1,927

3,462

3,601

Income from operations

716

483

1,322

918

Interest expense, net

124

132

247

262

Income from continuing operations before income taxes

592

351

1,075

656

Income tax (benefit) expense from continuing operations

(73)

87

(35)

169

Net income from continuing operations

665

264

1,110

487

Net loss from discontinued operations (net of tax of $0)

—

1

—

3

Net income

665

263

1,110

484

Net income attributable to noncontrolling interests

158

74

265

136

Net income attributable to common shareholders

$          507

$          189

$          845

$             348

Earnings per common share

Basic net income per share from continuing operations

$          1.46

$          0.58

$         2.43

$            1.07

Basic net loss per share from discontinued operations

$             —

$         (0.00)

$            —

$           (0.01)

Basic net income per share

$          1.46

$          0.58

$         2.43

$            1.07

Diluted net income per share from continuing operations

$          1.45

$          0.58

$         2.42

$            1.07

Diluted net loss per share from discontinued operations

$             —

$         (0.00)

$            —

$           (0.01)

Diluted net income per share

$          1.45

$          0.57

$         2.42

$            1.06

Weighted average shares outstanding (in millions):

Basic

348

328

347

327

Diluted

460

457

459

456

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions of U.S. dollars, except share data, Unaudited)

As of

June 30, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$              1,063

$              1,163

Accounts and notes receivable, net of allowance of $43 and $54, respectively

800

794

Inventories, net

224

205

Prepaids and other current assets

256

179

Assets held for sale - discontinued operations

—

489

Total current assets

2,343

2,830

Property and equipment, net of accumulated depreciation and amortization of $1,299 and
$1,245, respectively

2,230

2,303

Operating lease assets, net

1,964

1,961

Intangible assets, net

10,945

11,190

Goodwill

6,183

6,306

Other assets, net

1,357

1,025

Total assets

$            25,022

$            25,615

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts and drafts payable

$                 884

$                 866

Other accrued liabilities

1,165

1,271

Gift card liability

183

249

Current portion of long-term debt and finance leases

82

68

Liabilities held for sale - discontinued operations

—

437

Total current liabilities

2,314

2,891

Long-term debt, net of current portion

13,206

13,250

Finance leases, net of current portion

243

261

Operating lease liabilities, net of current portion

1,908

1,900

Other liabilities, net

900

1,034

Deferred income taxes, net

1,056

1,120

Total liabilities

19,627

20,456

Shareholders' equity:

Common shares, no par value; unlimited shares authorized at June 30, 2026 and
December 31, 2025; 349,205,651 shares issued and outstanding at June 30, 2026;
346,323,165 shares issued and outstanding at December 31, 2025

2,870

2,859

Retained earnings

2,179

1,795

Accumulated other comprehensive income (loss)

(1,199)

(1,020)

Total Restaurant Brands International Inc. shareholders' equity

3,850

3,634

Noncontrolling interests

1,545

1,525

Total shareholders' equity

5,395

5,159

Total liabilities and shareholders' equity

$            25,022

$            25,615

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars, Unaudited)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income

$               1,110

$                 484

Net loss from discontinued operations

—

3

Net income from continuing operations

1,110

487

Depreciation and amortization

155

148

Amortization of deferred financing costs and debt issuance discount

12

13

(Income) loss from equity method investments

(4)

(10)

(Gain) loss on remeasurement of foreign denominated transactions

(50)

207

Net (gains) losses on derivatives

(82)

(102)

Share-based compensation and non-cash incentive compensation expense

70

81

Deferred income taxes

(215)

8

Other non-cash adjustments, net

(7)

31

Changes in current assets and liabilities, excluding acquisitions and dispositions:

Accounts and notes receivable

(24)

(72)

Inventories and prepaids and other current assets

(35)

(30)

Accounts and drafts payable

42

(6)

Other accrued liabilities and gift card liability

(184)

(155)

Tenant inducements paid to franchisees

(18)

(14)

Changes in other long-term assets and liabilities

(13)

(19)

Net cash provided by operating activities from continuing operations

757

567

Cash flows from investing activities:

Payments for additions of property and equipment

(109)

(102)

Net proceeds from disposal of assets, restaurant closures, and refranchisings

33

12

Net payments for acquisition of franchised restaurants, net of cash acquired

—

(152)

Settlement/sale of derivatives, net

28

40

Other investing activities, net

(12)

—

Net cash used for investing activities from continuing operations

(60)

(202)

Cash flows from financing activities:

Repayments of long-term debt and finance leases

(57)

(66)

Payment of common share dividends and Partnership exchangeable unit distributions

(579)

(544)

Repurchase of common shares

(170)

—

Proceeds from stock option exercises

35

20

Proceeds from derivatives

19

34

Other financing activities, net

(1)

1

Net cash used for financing activities from continuing operations

(753)

(555)

Net cash used for discontinued operations

(27)

(85)

Effect of exchange rates on cash and cash equivalents

(8)

19

(Decrease) increase in cash and cash equivalents, including cash classified as assets held
for sale - discontinued operations

(91)

(256)

Increase in cash classified as assets held for sale - discontinued operations

(9)

(52)

(Decrease) increase in cash and cash equivalents

(100)

(308)

Cash and cash equivalents at beginning of period

1,163

1,334

Cash and cash equivalents at end of period

$              1,063

$              1,026

Supplemental cash flow disclosures:

Interest paid

$                 329

$                 360

Income taxes paid, net

$                 229

$                 285

Accruals for additions of property and equipment

$                   20

$                   22

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Key Operating Metrics and Non-GAAP Financial Measures

Key Operating Metrics
Key performance indicators ("KPIs") are shown for RBI's Five Franchisor Segments. The KPIs for the Carrols Burger King restaurants are included in the BK segment and KPIs for the PLK China, BK China, and FHS Brazil restaurants are included in the INTL segment.

System-wide Sales Growth refers to the percentage change in sales at all franchised restaurants and company restaurants (referred to as System-wide Sales) in one period from the same period in the prior year on a constant currency basis, which means the results exclude the effect of foreign currency translation ("FX Impact"). We calculate the FX Impact by translating prior year results at current year monthly average exchange rates. System-wide Sales is reported on a nominal basis. Comparable Sales refers to the percentage change in restaurant sales in one period from the same prior year period on a constant currency basis for restaurants that have been open for an initial consecutive period, typically at least 13 months. Additionally, if a restaurant is closed for a significant portion of a month, the restaurant is excluded from the monthly Comparable Sales calculation. Unless otherwise stated, System-wide Sales Growth, System-wide Sales and Comparable Sales are presented on a system-wide basis, which means they include franchised restaurants and company restaurants. System-wide results are driven by our franchised restaurants, as over 95% of system-wide restaurants are franchised. Franchise sales represent sales at all franchised restaurants and are revenues to our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and advertising fund contributions are calculated based on a percentage of franchise sales. Net Restaurant Growth refers to the net change in restaurant count (openings, net of permanent closures) over a trailing twelve month period, divided by the restaurant count at the beginning of the trailing twelve month period. In determining whether a restaurant meets our definition of a restaurant that will be included in our Net Restaurant Growth, we consider factors such as scope of operations, format and image, separate franchise agreement, and minimum sales thresholds. We refer to restaurants that do not meet our definition as "alternative formats" and we believe these are helpful to build brand awareness, test new concepts and provide convenience in certain markets. Total Capex and Cash Inducements refers to the sum of payments for additions to property and equipment, tenant inducements paid to franchisees, other cash inducements (included in changes in other long-term assets and liabilities), and increase (decrease) in accruals for additions to property and equipment. These metrics are important indicators of the overall direction of our business, including trends in sales and the effectiveness of each brand's marketing, operations and growth initiatives. Total Capex and Cash Inducements is an indicator of the capital intensity of our business.

Non-GAAP Financial Measures
Below, we define non-GAAP financial measures, provide a reconciliation of each measure to the most directly comparable financial measure calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), and discuss the reasons management uses this information and why we believe this information may be useful to investors. These measures do not have standardized meanings under GAAP and may differ from similarly captioned measures of other companies in our industry. We believe that these non-GAAP measures are useful to investors in assessing our operating performance and liquidity. By disclosing these non-GAAP measures, we intend to provide investors with a consistent comparison of our operating results and trends for the periods presented.

AOI represents Income from operations adjusted to exclude (i) franchise agreement and reacquired franchise right intangible asset amortization as a result of acquisition accounting, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net and, (iv) expenses from non-recurring projects and non-operating activities. For the periods referenced, expenses from non-recurring projects and non-operating activities included (i) non-recurring fees and expenses, consisting primarily of professional fees, compensation-related expenses, and integration costs, incurred in connection with (a) the Carrols Acquisition, the PLK China Acquisition, and the BK China Transactions, and (b) the anticipated refranchising of restaurants held in the RH segment, primarily those acquired in the Carrols Acquisition, in connection with the planned sunset of the RH segment ("RH and BK China Transaction costs") and (ii) non-operating costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements as well as services related to significant tax reform legislation and regulations ("Corporate restructuring and advisory fees"). Management believes that these types of expenses are either not related to our underlying profitability drivers or not likely to reoccur in the foreseeable future, and the varied timing, size, and nature of these projects may cause volatility in our results unrelated to the performance of our core business that does not reflect trends of our core operations. AOI is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items. AOI, as defined above, also represents our measure of segment income for each of our operating segments.

Adjusted EBITDA is defined as earnings (net income or loss from continuing operations) before interest expense, net, (gain) loss on early extinguishment of debt, income tax (benefit) expense from continuing operations, and depreciation and amortization excluding (i) the non-cash impact of share-based compensation and non-cash incentive compensation expense, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net, and (iv) income or expense from non-recurring projects and non-operating activities (as described above) and is used by management to measure leverage.

Segment G&A is defined as general and administrative expenses excluding RH and BK China Transaction costs and Corporate restructuring and advisory fees. Segment G&A (excluding RH) is defined as Segment G&A for our Five Franchisor Segments.

Segment F&P Expenses is defined as franchise and property expenses excluding franchise agreement amortization ("FAA") and reacquired franchise rights amortization as a result of acquisition accounting.

Adjusted Net Income is defined as Net income from continuing operations excluding (i) franchise agreement and reacquired franchise right intangible asset amortization as a result of acquisition accounting, (ii) amortization of deferred financing costs and debt issuance discount, (iii) loss on early extinguishment of debt and interest expense, which represents non-cash interest expense related to amounts reclassified from accumulated comprehensive income (loss) into interest expense in connection with restructured interest rate swaps, (iv) (income) loss from equity method investments, net of cash distributions received from equity method investments, (v) other operating expenses (income), net, and (vi) income or expense from non-recurring projects and non-operating activities (as described above). 

Adjusted Interest Expense, net is defined as interest expense, net less (i) amortization of deferred financing costs and debt issuance discount and (ii) non-cash interest expense related to amounts reclassified from accumulated comprehensive income (loss) into interest expense in connection with restructured interest rate swaps.

Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted average diluted shares outstanding of RBI during the reporting period. Adjusted Net Income and Adjusted Diluted EPS are used by management to evaluate the operating performance of the business, excluding certain non-cash and other specifically identified items that management believes are not relevant to management's assessment of operating performance.

Net Debt is defined as Total debt less cash and cash equivalents. Total debt is defined as long-term debt, net of current portion plus (i) Finance leases, net of current portion, (ii) Current portion of long-term debt and finance leases and (iii) Unamortized deferred financing costs and deferred issue discount. Net Debt is used by management to evaluate RBI's liquidity. We believe this measure is an important indicator of RBI's ability to service its debt obligations.

Net Leverage is defined as Net Debt divided by Adjusted EBITDA. This metric is an operating performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.

Revenue growth, Income from Operations growth, Adjusted Operating Income growth, Net Income growth, Adjusted EBITDA growth, Adjusted Net Income growth and Adjusted Diluted EPS growth on an organic basis, are non-GAAP measures that exclude the impact of FX movements and the results of our RH segment. With respect to Adjusted Diluted EPS, growth on an organic basis also excludes the impact of incremental debt incurred as part of the Carrols transaction. Management believes that organic growth is an important metric for measuring the operating performance of our business as it helps identify underlying business trends, without distortion from the effects of FX movements and the RH segment given RBI's plans to refranchise the vast majority of the Carrols Burger King restaurants and to find a new partner for PLK China and new investors for FHS Brazil and sunset the RH segment. We calculate the impact of FX movements by translating prior year results at current year monthly average exchange rates.

Free Cash Flow ("FCF") is the total of Net cash provided by operating activities minus Payments for property and equipment. FCF is a liquidity measure used by management as one factor in determining the amount of cash that is available for working capital needs or other uses of cash and it does not represent residual cash flows available for discretionary expenditures. 

We are not currently able to reconcile our forward-looking non-GAAP measures because we cannot predict the timing and amounts of certain important components of estimated operating income and general and administrative expenses, including the impact of equity method investments and other operating expenses or income from non-recurring projects and non-operating activities, which could significantly impact GAAP results.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures | Organic Growth
Three Months Ended June 30, 2026
(In millions of U.S. dollars, except per share data, Unaudited)

Three Months Ended
June 30,

Variance

RH Impact

FX Impact

Organic Growth

2026

2025

$

%

$

$

$

%

Revenue

TH

$    1,137

$    1,083

$        54

4.9 %

$       —

$       (1)

$        54

5.0 %

BK

397

388

9

2.3 %

—

—

9

2.3 %

PLK

199

210

(11)

(5.4) %

—

—

(11)

(5.4) %

FHS

62

59

3

4.7 %

—

—

3

4.7 %

INTL

274

250

25

9.8 %

—

4

20

8.1 %

RH

506

469

36

7.7 %

36

—

—

— %

Elimination of intersegment
  revenues (a)

(55)

(49)

(5)

11.0 %

(5)

—

—

— %

 Total Revenues

$    2,520

$    2,410

$      109

4.5 %

$       31

$        3

$        75

3.8 %

Income from Operations

$       716

$       483

$      233

48.4 %

$       10

$       (2)

$      225

47.0 %

Net Income from Continuing Operations

$       665

$       264

$      401

152.1 %

$         7

$       (2)

$      396

151.6 %

Adjusted Operating Income

TH

$       287

$       278

$          9

3.2 %

$       —

$       (1)

$        10

3.5 %

BK

137

121

16

13.2 %

—

—

16

13.3 %

PLK

63

66

(4)

(5.4) %

—

—

(3)

(5.3) %

FHS

17

15

2

11.4 %

—

—

2

11.4 %

INTL

194

172

23

13.2 %

—

2

20

11.7 %

RH

17

16

—

3.0 %

—

—

—

— %

Adjusted Operating Income

$       715

$       668

$        46

6.9 %

$       —

$        2

$        44

6.7 %

Adjusted EBITDA

$       810

$       762

$        48

6.3 %

$         3

$        2

$        43

5.9 %

Adjusted Net Income

$       490

$       432

$        59

13.6 %

$         1

$        1

$        56

13.0 %

Adjusted Diluted Earnings per Share

$      1.07

$      0.94

$     0.12

12.9 %

$       —

$      —

$     0.12

12.3 %

(a)

Represents elimination of intersegment revenues that consists of royalties, property and advertising and other services revenue recognized by BK and INTL from intersegment transactions with RH.

Note: Totals, variances, and percentage changes may not recalculate due to rounding.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures | Organic Growth
Six Months Ended June 30, 2026
(In millions of U.S. dollars, except per share data, Unaudited)

Six Months Ended

June 30,

Variance

RH Impact

FX Impact

Organic Growth

2026

2025

$

%

$

$

$

%

Revenue

TH

$    2,134

$    1,987

$      147

7.4 %

$           —

$         36

$      111

5.5 %

BK

762

744

18

2.4 %

—

1

17

2.3 %

PLK

389

404

(15)

(3.7) %

—

—

(15)

(3.8) %

FHS

121

113

9

7.7 %

—

—

9

7.5 %

INTL

528

468

60

12.9 %

—

19

42

8.6 %

RH

953

901

52

5.8 %

52

—

—

— %

Elimination of intersegment
  revenues (a)

(103)

(97)

(6)

6.4 %

(6)

—

—

— %

Total Revenues

$    4,784

$    4,519

$      265

5.9 %

$           46

$         55

$      163

4.3 %

Income from Operations

$    1,322

$       918

$      404

44.0 %

$            —

$         10

$      394

42.6 %

Net Income from Continuing Operations

$    1,110

$       487

$      623

128.0 %

$            (4)

$           8

$      619

125.1 %

Adjusted Operating Income

TH

$       516

$       499

$        17

3.5 %

$           —

$          9

$          9

1.7 %

BK

252

224

28

12.6 %

—

—

28

12.6 %

PLK

119

126

(7)

(5.2) %

—

—

(7)

(5.4) %

FHS

31

26

5

17.8 %

—

—

5

17.6 %

INTL

390

310

80

25.8 %

—

11

69

21.5 %

RH

16

23

(7)

(31.1) %

(7)

—

—

— %

Adjusted Operating Income

$    1,324

$    1,208

$      116

9.6 %

$           (7)

$        20

$      104

8.5 %

Adjusted EBITDA

$    1,517

$    1,404

$      112

8.0 %

$            3

$        22

$        87

6.3 %

Adjusted Net Income

$       886

$       775

$       111

14.4 %

$           (5)

$        17

$        99

12.5 %

Adjusted Diluted Earnings per Share

$      1.93

$      1.70

$     0.23

13.7 %

$      (0.01)

$     0.04

$     0.20

11.8 %

(a)

Represents elimination of intersegment revenues that consists of royalties, property and advertising and other services revenue recognized by BK and INTL from intersegment transactions with RH.

Note: Totals, variances, and percentage changes may not recalculate due to rounding.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Reconciliation of Net Leverage, Free Cash Flow, and Capex and Cash Inducements
(In millions of U.S. dollars, except ratio, Unaudited)

As of

 Net Leverage

June 30, 2026

June 30, 2025

Long-term debt, net of current portion

$                 13,206

$                 13,428

Finance leases, net of current portion

243

282

Current portion of long-term debt and finance leases

82

221

Unamortized deferred financing costs and deferred issuance discount

78

104

Total debt

13,609

14,035

Cash and cash equivalents

1,063

1,026

Net debt

12,546

13,009

LTM Net Income from continuing operations

1,824

1,205

Net Income from continuing operations Net leverage

6.9x

10.8x

LTM Adjusted EBITDA

3,083

2,840

Net Leverage

4.1x

4.6x

Free Cash Flow

Six Months Ended June 30,

Twelve Months Ended 
December 31,

Twelve Months Ended
June 30,

2026

2025

2024

2025

2024

2026

2025

Calculation:

A

B

C

D

E

A + D - B

B + E - C

Net cash provided by operating activities

$      757

$      567

$      482

$     1,714

$     1,503

$     1,904

$     1,588

Payments for additions of property and equipment

(109)

(102)

(69)

(265)

(201)

(272)

(234)

Free Cash Flow

$      648

$      465

$      413

$     1,449

$     1,302

$     1,632

$     1,354

Three Months Ended June 30,

Six Months Ended June 30,

Capex and Cash Inducements

2026

2025

2026

2025

Payments for additions of property and equipment

$          51

$          38

$         109

$         102

Tenant inducements paid to franchisees

10

8

18

14

Other cash inducements (incl. in changes in other long-term assets and liabilities)

9

19

21

28

Increase (decrease) in accruals for additions to property and equipment

(8)

3

(34)

(29)

Total Capex and Cash Inducements

$          62

$          68

$         114

$         115

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures| Reconciliations
(In millions of U.S. dollars, except per share data, Unaudited)

Net income from continuing operations to Income from Operations to Adjusted Operating Income to Adjusted EBITDA

Three Months Ended
June 30,

Six Months Ended June 30,

Twelve Months Ended
December 31,

Twelve Months Ended
June 30,

2026

2025

2026

2025

2024

2025

2024

2026

2025

A

B

C

D

E

A + D - B

B + E - C

Net income from continuing operations

$       665

$      264

$   1,110

$      487

$      727

$           1,201

$        1,445

$    1,824

$    1,205

Income tax (benefit) expense from continuing operations(3)

(73)

87

(35)

169

153

483

364

279

380

Loss on early extinguishment of debt

—

—

—

—

32

2

33

2

1

Interest expense, net

124

132

247

262

295

516

577

501

544

Income from operations

716

483

1,322

918

1,207

2,202

2,419

2,606

2,130

Franchise agreement and reacquired franchise rights amortization (FAA)

16

17

32

33

19

65

53

64

67

RH and BK China Transaction costs

3

16

9

22

13

37

22

24

31

Corporate restructuring and advisory fees

2

5

4

6

8

14

20

12

18

Impact of equity method investments(2)

3

(1)

4

(3)

(64)

5

(53)

12

8

Other operating expenses (income), net

(26)

149

(47)

232

(11)

261

(59)

(18)

184

Adjusted Operating Income

715

668

$   1,324

$   1,208

$   1,172

$        2,584

$       2,402

$ 2,700

$  2,438

Depreciation and amortization, excluding FAA

61

61

123

116

89

236

210

243

237

Share-based compensation and non-cash incentive compensation expense(1)

35

33

70

81

87

151

172

139

166

Adjusted EBITDA

810

762

$   1,517

$   1,404

$   1,348

$        2,970

$       2,784

$ 3,083

$  2,840

Net income from continuing operations to Adjusted Net Income and Adjusted Diluted EPS

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net income from continuing operations

$            665

$            264

$          1,110

$            487

Income tax (benefit) expense from continuing operations(3)

(73)

87

(35)

169

Income from continuing operations before income taxes

592

351

1,075

656

Adjustments:

Franchise agreement and reacquired franchise rights amortization

16

17

32

33

Amortization of deferred financing costs and debt issuance discount

6

7

12

13

Interest expense and loss on extinguished debt(4)

(7)

(6)

(14)

(10)

RH and BK China Transaction costs

3

16

9

22

Corporate restructuring and advisory fees

2

5

4

6

Impact of equity method investments(2)

3

(1)

4

(3)

Other operating expenses (income), net

(26)

149

(47)

232

Total adjustments

(3)

187

—

293

Adjusted income before income taxes

589

538

1,075

949

Adjusted income tax expense(3)(5)

99

106

189

174

Adjusted net income

$            490

$            432

$            886

$            775

Adjusted diluted earnings per share

$           1.07

$           0.94

$           1.93

$           1.70

Weighted average diluted shares outstanding (in millions)

460

457

459

456

Note: Totals may not recalculate due to rounding.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Footnotes to Reconciliation Tables

(1)

Represents share-based compensation expense associated with equity awards for the periods indicated; also includes the portion of annual non-cash incentive compensation expense that eligible employees elected to receive or are expected to elect to receive as common equity in lieu of their 2026 and 2025 cash bonus, respectively.

(2)

Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in Adjusted Operating Income which is our measure of segment income.

(3)

The change in our effective tax rate was primarily due to discrete tax benefits resulting from the movements in net deferred taxes in connection with intra-group reorganizations, partially offset by the impact of the administrative guidance issued by the Organization of Economic Cooperation and Development ("OECD") in 2025. The reorganization has a favorable impact to the full year effective tax rate but does not impact the adjusted effective tax rate.

(4)

Represents loss on early extinguishment of debt and interest expense. Interest expense included in this amount represents non-cash interest expense related to amounts reclassified from accumulated comprehensive income (loss) into interest expense in connection with restructured interest rate swaps.

(5)

Adjusted income tax expense includes the tax impact of the non-GAAP adjustments and is calculated using our statutory tax rate in the jurisdiction in which the costs were incurred.

SOURCE Restaurant Brands International Inc.

Restaurant Brands International Today

QSR

Restaurant Brands International

$72.45 -0.80 (-1.09%)

As of 06/30/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$61.33▼

$81.96Dividend Yield3.59%

P/E Ratio25.51

Price Target$83.54

Investors could be forgiven if they thought Restaurant Brands International NYSE: QSR was just another holding company for aging fast-food brands.

That has changed. The numbers from the first quarter of 2026 paint a picture that the market appears to have only partially absorbed. Revenue and income are up. Systemwide sales are on the rise. Investment firms are buying into the company. And the company’s push for modernization and expansion is accelerating.

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Whether investors see similar results when the second quarter figures are released remains to be seen. But investors should be paying attention as the company’s plans are being aggressively rolled out.

Restaurant Brands Is Seeing New MomentumRestaurant Brands, with 33,000 restaurants in more than 125 markets, was assembled over the past dozen years through a series of mergers. Today, it includes Burger King, Tim Hortons, Popeyes, and Firehouse Subs.

The business runs almost entirely on franchising, which means the company collects royalties and licensing fees rather than cooking hamburgers itself. The benefit is that earnings are structurally protected from the daily volatility of food costs and labor markets. Instead, the model produces steadier, high-margin cash flows that have long supported a generous dividend.

Burger King Turnaround Is Gaining TractionA significant turning point came in 2022, when management launched a program called Reclaim the Flame, a multi-year effort to rescue Burger King in the United States. The brand had been languishing in its fight with McDonald's NYSE: MCD and Wendy's NASDAQ: WEN. Franchisees were struggling, and the marketing had gone stale.

With plans to invest up to $700 million through 2028, the Reclaim the Flame program was aimed at increasing sales and helping franchisee profitability with improved advertising and digital investments. Part of that initiative, targeting remodels, technology, and kitchen equipment, has already seen $189 million of the $550 million funded. Marketing campaigns, such as the recent early tie-in with the Star Wars film "The Mandalorian and Grogu," have also taken hold.

Sales Growth Signals Real ProgressThe results are encouraging. In the first quarter of 2026, Burger King U.S. delivered comparable sales growth of 5.8%, a swing of nearly seven percentage points from a 1.1% decline in the same quarter a year earlier.

Systemwide sales at the 7,000 restaurants grew 5.5%, and segment adjusted operating income reached $115 million, up from $103 million a year prior. While notable for any restaurant brand. For Burger King, they represent a fundamental shift in the business.

The company’s international segment also enjoyed a significant increase. Its 16,400 restaurants reported a 5.7% increase in comparable sales during the quarter compared with a year earlier, more than twice the pace of growth in the year-ago period.

Strong Financial Results Support ExpansionThe broader portfolio reflects a similar momentum. While the restaurant chains collected $11.5 billion from sales in the first quarter, up $1 billion from a year ago, not all of that flows to the parent company.

Total corporate revenue for the first quarter rose above analysts’ expectations to $2.26 billion from $2.11 billion a year earlier. Adjusted diluted earnings per share increased to 86 cents from 75 cents, also beating what analysts expected. Adjusted operating income climbed to $610 million from $539 million. GAAP net income from continuing operations doubled to $445 million.

Consolidated systemwide sales growth reached 6.2%, supported by 5.7% comparable sales growth in the international segment, which spans markets from Europe to Latin America to Southeast Asia. Under current plans, it also represents the company's most significant long-term expansion opportunity.

With plans to be 99% franchised by 2028, the company has said it plans to add 1,800 new units per year through that date, with a particular focus on the expansion of Burger King China.

Analysts See More Upside AheadOverall MarketRank™86th Percentile

Analyst RatingModerate Buy

Upside/Downside15.3% Upside

Short Interest LevelBearish

Dividend StrengthStrong

News Sentiment0.84 Insider TradingN/A

Proj. Earnings Growth9.34%

See Full Analysis

The recent results have analysts mostly encouraged. Of the 25 analysts following the stock, they have a consensus rating of Moderate Buy, with 15 placing the company as a Buy, nine rating it a Hold, and one recommending Sell. The average 12-month target price is $83.54 per share, suggesting an approximately 15% upside.

Beyond the targeted appreciation, the company also has an attractive dividend yield, currently about 3.6% based on its quarterly payout of 65 cents per share.

Management also announced that it bought back $34 million of company stock in the first quarter, with an additional $26 million purchased in April, leaving $940 million remaining under the board's broader authorization.

Risks Still Deserve Investor AttentionDespite the positive numbers and trajectory, the risks for Restaurant Brands remain. While the highest analyst target price is $92 per share, the lowest is $60, signaling clearly that some doubts remain.

Tim Hortons, the Canadian coffee-and-breakfast chain that accounts for approximately 38% of the company's operating profits, saw comparable sales grow only 1.5% in the first quarter. Popeyes, which has over 3,500 outlets, had a difficult first quarter with comparable sales in the United States falling 6.5%, and adjusted operating income slipping to $57 million from $60 million.

The broader consumer discretionary sector is also prone to sudden changes. Rising costs, consumer preferences, tariffs, and franchisee financial health are all active concerns.

A Promising Story Still Needs ConfirmationFor investors, the momentum is attractive, but the strategy rollout is not yet complete. Investors wanting a cleaner story might find more comfort in waiting and letting the next quarter or two confirm the trajectory.

Either way, this is not a situation that will likely announce itself loudly. The company is not a startup with a revolutionary new product. It is a franchise operator with four well-known brands, a disciplined management team, and a key brand turnaround that is quietly producing.

Should You Invest $1,000 in Restaurant Brands International Right Now?Before you consider Restaurant Brands International, you'll want to hear this.

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