Restaurant Brands International (NYSE:QSR – Get Free Report) (TSE:QSR) announced its earnings results on Thursday. The restaurant operator reported $1.10 EPS for the quarter, beating the consensus estimate of $1.08 by $0.02, FiscalAI reports. The business had revenue of $2.52 billion for the quarter, compared to analysts’ expectations of $2.55 billion. Restaurant Brands International had a return on equity of 33.43% and a net margin of 13.12%. The firm’s revenue was up 3.1% on a year-over-year basis. During the same period in the prior year, the business posted $1.03 earnings per share.
Here are the key takeaways from Restaurant Brands International’s conference call:
- Strong Q3 performance: Same-store sales rose 3.8%, net restaurant growth was 3%, and system-wide sales increased 6.2%, driving 6.7% organic adjusted operating income growth and 6.9% adjusted EPS growth.
- Burger King U.S. momentum accelerated, with same-store sales up 8.4% and the brand reclaiming the No. 2 position in the U.S. burger category. Management cited continued opportunities from restaurant remodels, menu upgrades, operations, and family-focused collaborations.
- Popeyes remained a weak spot, with same-store sales down 1.8%; management said the return to positive comparable sales will take longer than previously expected. The $6 Big Box promotion was less incremental than anticipated, while reducing the wings offering created additional year-over-year pressure.
- International growth remains strong, with 3.9% same-store sales growth, 5.6% net restaurant growth, and improving economics in markets including China, Japan, Korea, Brazil, and Germany. Popeyes international system sales have nearly doubled in two years to more than $2 billion across over 50 markets.
- RBI returned $569 million to shareholders in Q3, including $274 million in share repurchases, and remains on track to repurchase roughly $500 million for the year. The company also reiterated its goal of reaching investment-grade leverage by 2028 while progressing toward sunsetting the Restaurant Holdings segment by the end of 2027.
Restaurant Brands International Trading Down 1.9%
NYSE QSR traded down $1.40 during trading hours on Thursday, hitting $73.12. 5,502,610 shares of the company’s stock were exchanged, compared to its average volume of 2,684,111. The stock has a 50-day simple moving average of $74.77 and a 200 day simple moving average of $73.92. Restaurant Brands International has a 1-year low of $64.52 and a 1-year high of $81.96. The firm has a market cap of $25.50 billion, a price-to-earnings ratio of 19.01, a PEG ratio of 2.18 and a beta of 0.52. The company has a current ratio of 1.01, a quick ratio of 0.92 and a debt-to-equity ratio of 2.49.
Restaurant Brands International Dividend Announcement
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, January 5th. Investors of record on Tuesday, December 22nd will be given a dividend of $0.65 per share. The ex-dividend date is Tuesday, December 22nd. This represents a $2.60 annualized dividend and a dividend yield of 3.6%. Restaurant Brands International’s dividend payout ratio is presently 69.89%.
Insiders Place Their Bets
In other Restaurant Brands International news, insider Axel Schwan sold 57,574 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $81.14, for a total value of $4,671,554.36. Following the transaction, the insider directly owned 209,908 shares of the company’s stock, valued at approximately $17,031,935.12. The trade was a 21.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.22% of the company’s stock.
Wall Street Analysts Forecast Growth
Several research analysts have issued reports on QSR shares. Morgan Stanley raised their price target on shares of Restaurant Brands International from $79.00 to $82.00 and gave the stock an “equal weight” rating in a report on Thursday, October 15th. CL King set a $80.00 price objective on shares of Restaurant Brands International in a research note on Monday, August 10th. Citigroup reduced their price objective on shares of Restaurant Brands International from $80.00 to $79.00 and set a “neutral” rating on the stock in a research note on Tuesday, October 20th. Scotia decreased their price objective on shares of Restaurant Brands International from $83.00 to $81.00 and set a “sector perform” rating for the company in a research report on Friday, August 7th. Finally, Weiss Ratings raised shares of Restaurant Brands International from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, August 12th. Sixteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, Restaurant Brands International presently has an average rating of “Moderate Buy” and an average price target of $83.52.
Get Our Latest Research Report on QSR
More Restaurant Brands International News
Here are the key news stories impacting Restaurant Brands International this week:
- Positive Sentiment: QSR reported third-quarter adjusted earnings of $1.10 per share, exceeding the $1.08 analyst consensus and rising from $1.03 a year earlier. Consolidated system-wide sales increased 6.2% year over year. Restaurant Brands Beats Q3 Earnings Estimates
- Positive Sentiment: Burger King was the main growth driver, with U.S. comparable sales up 8.4%, suggesting that value promotions and the brand’s turnaround efforts are attracting more customers. International comparable sales also grew 3.9%. Restaurant Brands reports mixed results
- Positive Sentiment: Management maintained its outlook for approximately 8% organic adjusted operating-income growth in 2026 and said RBI has returned $1.3 billion to shareholders year to date through dividends and share repurchases. Restaurant Brands International Reports Third Quarter 2026 Results
- Positive Sentiment: The company declared a quarterly dividend of $0.65 per share, equivalent to $2.60 annually and a yield of approximately 3.6%. The dividend is payable January 5 to shareholders of record December 22.
- Neutral Sentiment: TD Cowen reaffirmed its “hold” rating while maintaining a $78 price target, indicating some potential upside but limited analyst conviction following the results.
- Negative Sentiment: Revenue of roughly $2.52 billion increased 3.1% year over year but fell short of expectations near $2.55 billion. The revenue miss likely overshadowed the earnings beat and contributed to the stock’s decline. Restaurant Brands Q3 Profit Exceeds Forecasts Despite Revenue Miss
Restaurant Brands International Company Profile
Restaurant Brands International Inc (NYSE:QSR) is a global quick-service restaurant company that owns and operates a portfolio of restaurant brands, primarily through franchised and licensed locations. Its brands include Tim Hortons, Burger King, Popeyes and Firehouse Subs, which serve coffee, baked goods, burgers, chicken, sandwiches and other prepared foods.
The company was formed in 2014 through the merger of Burger King Worldwide and Tim Hortons. RBI expanded its portfolio through the acquisition of Popeyes Louisiana Kitchen in 2017 and Firehouse Restaurant Group in 2021.
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