Restaurant Brands International (NYSE:QSR – Get Free Report) (TSE:QSR) issued its quarterly earnings data on Thursday. The restaurant operator reported $1.07 earnings per share for the quarter, topping analysts’ consensus estimates of $1.04 by $0.03, FiscalAI reports. Restaurant Brands International had a net margin of 13.12% and a return on equity of 33.74%. The business had revenue of $2.52 billion during the quarter, compared to analysts’ expectations of $2.52 billion. During the same period last year, the company posted $0.94 EPS. The company’s revenue was up 4.6% on a year-over-year basis.
Here are the key takeaways from Restaurant Brands International’s conference call:
- Strong Q2 performance: Same-store sales rose 3.8%, system-wide sales increased 6.4%, organic Adjusted Operating Income grew 6.7%, and Adjusted EPS increased 12.9% to $1.07. Management reiterated its expectation for 8% organic Adjusted Operating Income growth in 2026.
- Burger King U.S. continued its turnaround momentum with 8.5% same-store sales growth, outperforming the burger QSR industry by more than nine percentage points. Management cited ongoing gains from Whopper marketing, value offerings, remodels, service improvements, and further menu elevation as sources of future growth.
- International remained a major growth engine, delivering 5.5% comparable sales growth, 5.1% net restaurant growth, and 10.7% system-wide sales growth. Management highlighted improving unit economics in markets including China and India, with average paybacks of roughly 4.5 years across its top 10 growth markets.
- Brand performance was mixed: Tim Hortons Canada posted only 0.1% same-store sales growth as Q2 marketing underperformed, while Popeyes U.S. same-store sales declined 5.2%. Management expects Popeyes to return to positive comparable sales in the second half, supported by value promotions, core-menu focus, and operational improvements.
- Capital allocation and leverage improved. RBI generated $501 million of Q2 free cash flow, returned $435 million to shareholders, and reduced net leverage to 4.1 times; the company remains on track to repurchase approximately $500 million of stock in 2026 and reach investment-grade leverage by 2028.
Restaurant Brands International Trading Up 1.5%
Shares of NYSE:QSR traded up $1.07 during midday trading on Friday, reaching $73.99. The company’s stock had a trading volume of 2,635,053 shares, compared to its average volume of 2,417,505. The firm has a market cap of $25.84 billion, a price-to-earnings ratio of 19.89, a price-to-earnings-growth ratio of 2.16 and a beta of 0.50. The company has a quick ratio of 0.90, a current ratio of 0.99 and a debt-to-equity ratio of 2.55. Restaurant Brands International has a 1 year low of $61.33 and a 1 year high of $81.96. The business has a 50 day moving average price of $73.75 and a 200 day moving average price of $73.62.
Restaurant Brands International Dividend Announcement
Institutional Trading of Restaurant Brands International
Hedge funds have recently added to or reduced their stakes in the business. UMB Bank n.a. increased its position in Restaurant Brands International by 50.4% during the fourth quarter. UMB Bank n.a. now owns 639 shares of the restaurant operator’s stock worth $44,000 after purchasing an additional 214 shares during the last quarter. Capital Analysts LLC boosted its holdings in shares of Restaurant Brands International by 20.6% in the 4th quarter. Capital Analysts LLC now owns 924 shares of the restaurant operator’s stock valued at $63,000 after purchasing an additional 158 shares during the last quarter. Advisory Services Network LLC purchased a new stake in shares of Restaurant Brands International during the 3rd quarter valued at $155,000. Coldstream Capital Management Inc. grew its stake in shares of Restaurant Brands International by 11.6% during the 3rd quarter. Coldstream Capital Management Inc. now owns 3,393 shares of the restaurant operator’s stock valued at $218,000 after buying an additional 354 shares during the period. Finally, AQR Capital Management LLC acquired a new stake in shares of Restaurant Brands International during the 1st quarter worth $237,000. 82.29% of the stock is owned by institutional investors and hedge funds.
Key Stories Impacting Restaurant Brands International
Here are the key news stories impacting Restaurant Brands International this week:
- Positive Sentiment: Q2 earnings beat expectations: Adjusted EPS reached $1.07, above the roughly $1.03–$1.04 analyst consensus and up from $0.94 a year earlier. Revenue rose 4.6% year over year to $2.52 billion, in line with estimates. Restaurant Brands International earnings beat as Burger King’s U.S. business soars
- Positive Sentiment: Burger King is driving growth: Burger King U.S. comparable sales increased 8.5%, helping consolidated systemwide sales grow 6.4%. International comparable sales also rose 5.5%, while RBI reported double-digit earnings growth and reaffirmed its target for 8% organic adjusted operating-income growth in 2026. Restaurant Brands International Inc. Reports Second Quarter 2026 Results
- Positive Sentiment: Improving competitive position: Burger King reportedly reclaimed the No. 2 spot among U.S. burger chains by systemwide sales, overtaking Wendy’s. The revamped Whopper and broader turnaround efforts are helping attract customers and gain market share as some rivals experience slower growth. Burger King overtakes Wendy’s as the nation’s second-largest burger chain
- Positive Sentiment: Shareholder returns: RBI declared a quarterly dividend of $0.65 per share, or $2.60 annualized, implying a yield of approximately 3.6%. The company also returned $435 million to shareholders through dividends and share repurchases.
- Negative Sentiment: Price targets were reduced: Scotia lowered its target from $83 to $81 and maintained a “sector perform” rating. Piper Sandler cut its target from $85 to $81 but retained an “overweight” rating. Both targets still imply roughly 9% upside, but the reductions suggest more cautious expectations after the earnings report.
Analysts Set New Price Targets
A number of research firms recently issued reports on QSR. Deutsche Bank Aktiengesellschaft reduced their target price on Restaurant Brands International from $86.00 to $85.00 and set a “buy” rating on the stock in a research note on Thursday, July 9th. CL King set a $81.00 price target on Restaurant Brands International in a report on Thursday, May 7th. Barclays upped their price objective on Restaurant Brands International from $85.00 to $92.00 and gave the company an “overweight” rating in a research report on Thursday, May 7th. Piper Sandler decreased their price objective on Restaurant Brands International from $85.00 to $81.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, UBS Group lifted their price objective on Restaurant Brands International from $85.00 to $90.00 and gave the stock a “buy” rating in a research report on Monday, May 4th. Sixteen analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $83.83.
Read Our Latest Research Report on Restaurant Brands International
About Restaurant Brands International
Restaurant Brands International Inc (NYSE: QSR) is a global quick-service restaurant company formed through the combination of established brands. The company’s principal holdings include Burger King, Tim Hortons and Popeyes, each of which operates under its own brand identity and menu. Restaurant Brands International’s business is centered on developing and expanding these franchised restaurant systems, supporting franchisees with brand management, supply chain coordination, and marketing programs.
RBI’s restaurants offer a range of quick-service food and beverage products: Burger King is known for its flame-grilled hamburgers and sandwiches, Tim Hortons for coffee, baked goods and breakfast items, and Popeyes for Louisiana-style fried chicken and seafood.
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