Restaurant Brands International (NYSE:QSR – Get Free Report) (TSE:QSR) posted 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 firm had revenue of $2.52 billion during the quarter, compared to analysts’ expectations of $2.52 billion. During the same quarter last year, the company posted $0.94 EPS. The firm’s quarterly 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 Stock Up 1.5%
Restaurant Brands International stock traded up $1.07 during mid-day trading on Friday, reaching $73.99. 2,635,053 shares of the company’s stock were exchanged, compared to its average volume of 2,417,505. The company has a market cap of $25.84 billion, a P/E ratio of 19.89, a P/E/G ratio of 2.16 and a beta of 0.50. Restaurant Brands International has a twelve month low of $61.33 and a twelve month high of $81.96. The company has a quick ratio of 0.90, a current ratio of 0.99 and a debt-to-equity ratio of 2.55. The company has a fifty day moving average of $73.75 and a 200-day moving average of $73.62.
Restaurant Brands International Dividend Announcement
Hedge Funds Weigh In On Restaurant Brands International
Institutional investors have recently modified their holdings of the business. Baupost Group LLC MA lifted its stake in Restaurant Brands International by 103.8% in the third quarter. Baupost Group LLC MA now owns 8,252,862 shares of the restaurant operator’s stock worth $529,337,000 after acquiring an additional 4,203,300 shares during the last quarter. State Street Corp raised its holdings in shares of Restaurant Brands International by 9,477.4% in the 2nd quarter. State Street Corp now owns 2,997,344 shares of the restaurant operator’s stock valued at $198,711,000 after purchasing an additional 2,966,048 shares in the last quarter. EdgePoint Investment Group Inc. lifted its position in shares of Restaurant Brands International by 11.7% during the 4th quarter. EdgePoint Investment Group Inc. now owns 16,645,003 shares of the restaurant operator’s stock worth $1,135,844,000 after purchasing an additional 1,741,795 shares during the last quarter. Morgan Stanley grew its stake in shares of Restaurant Brands International by 24.2% during the fourth quarter. Morgan Stanley now owns 8,429,121 shares of the restaurant operator’s stock worth $575,119,000 after purchasing an additional 1,641,870 shares in the last quarter. Finally, Canada Pension Plan Investment Board grew its stake in shares of Restaurant Brands International by 56.4% during the second quarter. Canada Pension Plan Investment Board now owns 2,855,081 shares of the restaurant operator’s stock worth $189,510,000 after purchasing an additional 1,029,500 shares in the last quarter. Institutional investors and hedge funds own 82.29% of the company’s stock.
Restaurant Brands International News Roundup
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 analysts have issued reports on QSR shares. Morgan Stanley boosted their target price on Restaurant Brands International from $78.00 to $79.00 and gave the company an “equal weight” rating in a research report on Wednesday, July 15th. CL King set a $81.00 price target on Restaurant Brands International in a research report on Thursday, May 7th. Wells Fargo & Company lifted their price objective on Restaurant Brands International from $75.00 to $80.00 and gave the company an “equal weight” rating in a research note on Thursday, May 7th. JPMorgan Chase & Co. boosted their price objective on Restaurant Brands International from $77.00 to $80.00 and gave the company an “overweight” rating in a report on Friday, April 24th. Finally, Weiss Ratings raised Restaurant Brands International from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, July 8th. Sixteen analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $83.83.
Get Our Latest Stock Report on QSR
Restaurant Brands International Company Profile
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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