Restaurant Brands International Inc. (QSR) Business Profile

What it does

Restaurant Brands International owns and franchises Tim Hortons, Burger King, Popeyes and Firehouse Subs. Its brands sell coffee, baked goods, burgers, chicken, sandwiches and other food and drinks to restaurant customers. Joshua Kobza is chief executive, and the company’s principal executive office is in Miami, Florida.

Most restaurants carrying its brands are run by independent franchisees rather than by Restaurant Brands itself. Franchisees operate under agreements that let them use the brands and require them to follow operating standards. The company supports them with training, marketing guidance and approved suppliers. It also operates restaurants directly, including locations acquired from franchisees and others used to test initiatives or develop operating talent.

As of December 31, 2025, the system had over 33,000 restaurants in more than 120 countries and territories. Over 95% of system-wide restaurants were franchised as of the annual report date. The company plans to return most of the Burger King restaurants acquired in the Carrols acquisition to franchise ownership over time.

The brands serve different occasions and menus. Tim Hortons offers coffee, beverages and meals throughout the day; Burger King focuses on burgers and other sandwiches; Popeyes serves chicken; and Firehouse Subs sells hot subs and sides. The company also supplies products and equipment to Tim Hortons franchisees and sells packaged goods.

How it makes money

Restaurant Brands earns revenue from franchise royalties and fees, property leases, its Tim Hortons supply chain, company-operated restaurants, and advertising and other services. Royalties generally recur as franchised restaurants make sales. In the U.S. and Canada, royalties for standard restaurants typically range from 3.0% to 6.0% of gross sales, depending partly on whether the company owns or subleases the property to the franchisee.

Franchisees also pay fees for franchise agreements and renewals. At properties leased or subleased from Restaurant Brands, they typically pay fixed rent and/or rent based on a percentage of sales. Restaurants contribute a percentage of sales to advertising funds, which pay for marketing and related support; technology fees partially offset technology expenses.

The Tim Hortons supply chain sources products, supplies and equipment and resells them to franchisees. It also sources and sells consumer packaged goods. Company-operated restaurants generate sales directly, while their expenses include food, packaging, wages and occupancy costs.

The company reports six segments: Tim Hortons, Burger King, Popeyes and Firehouse Subs in the U.S. and Canada; International for the brands outside those markets; and Restaurant Holdings for acquired Burger King restaurants and certain international company-operated restaurants. Some payments between Restaurant Holdings and the franchisor segments are eliminated when results are consolidated.

System-wide sales include sales at both franchised and company restaurants. Franchise restaurant sales belong to franchisees and are not themselves recorded as Restaurant Brands revenue, although they help determine royalties and advertising contributions.

Customers and how it sells

The company serves diners through its restaurant brands and serves independent franchisees through franchise rights, property, supplies, training and other support. Franchisees separately employ their restaurant teams. Restaurant customers can order through channels that include drive-thrus, delivery, mobile and web ordering, and kiosks. Digital loyalty programs operate across all brands in the U.S., Canada and many international markets.

At December 31, 2025, Tim Hortons had 4,586 restaurants in the U.S. and Canada and also operated internationally. Burger King had 7,025 in the U.S. and Canada and also operated internationally. Popeyes and Firehouse Subs also operated in both regions. The company’s North American brand headquarters are in Canada for Tim Hortons and the U.S. for the other three brands.

International expansion uses master franchise and development agreements. Master franchisees can receive exclusive rights to sub-franchise in a market, while development agreements grant rights to open restaurants. Restaurant Brands also holds equity stakes in some master franchisees and participates in joint ventures.

In January 2026, the company closed a Burger King China joint venture with CPE. Restaurant Brands owns approximately 17% of the venture and has a board seat; CPE owns approximately 83%.

Suppliers and costs

Restaurant Brands approves suppliers of food, packaging, equipment and other products used in its restaurants. Food and packaging must meet its quality standards, and supplier facilities undergo food-safety inspections.

Tim Hortons has a supply chain that includes production, procurement, warehousing and distribution. The company operates two coffee roasting facilities, which roast the majority of coffee for Tim Hortons restaurants globally. Its fondant and fills facility is the primary supplier of certain glazes, fillings and syrups used in Canada and the U.S. The company buys many other products from suppliers and resells them to Tim Hortons franchisees. It also uses third-party manufacturing and distribution in parts of the business.

Burger King, Popeyes and Firehouse Subs source products from third-party suppliers. Purchasing cooperatives negotiate terms for most Burger King and Popeyes equipment and products in the U.S. and Canada. Some suppliers pay Restaurant Brands rebates based on franchisee purchases.

Supply-chain costs include goods, direct labor and depreciation. Company restaurant costs include food, beverages, packaging, wages and occupancy. The company says coffee bean supply and prices can fluctuate, and it contracts for future supply volumes.

Competitive position

Restaurant Brands competes for diners on product choice, quality, affordability, service and location. Its competitors include independent operators, restaurant chains and franchises, convenience stores and grocery stores. Delivery services also give customers access to competing restaurants and food retailers. The company competes for franchisees, restaurant locations, managers and employees as well.

It was reported on 5 October 2026 that Burger King’s work on restaurant experience and its core menu could increase competitive pressure on McDonald’s. Burger King’s menu includes flame-grilled hamburgers and chicken sandwiches. Tim Hortons competes in coffee and baked goods, Popeyes in chicken, and Firehouse Subs in sandwiches.

The company owns trademarks and other intellectual property for its brands. It uses operating standards, inspections and franchisee training across its restaurants. Its loyalty programs, ordering technology and supply arrangements support its brands and franchisees.

Our reading: The established brands and large restaurant network provide a meaningful competitive position, but customers face many alternatives and the company identifies few barriers to new entrants. Our reading: Its supply chain, franchise support and digital programs can reinforce that position, although their value depends on franchisees delivering a consistent experience.

Growth opportunities

Restaurant Brands aims to grow by adding restaurants, renovating existing ones, developing menu items and improving service and convenience. Internationally, master franchise and development partners open restaurants and can adapt ideas to local markets. The company also shares ideas and capabilities across its brands and markets.

In Q3 2026, the company reported 3.8% same store sales growth and 3% net restaurant growth, driving 6.2% system-wide sales growth. Burger King U.S. same-store sales rose 8.4%, while Popeyes same-store sales were negative 1.8%. The company said its international business delivered 3.9% same-store sales growth and 5.6% net restaurant growth in the quarter.

Burger King’s Reclaim the Flame plan includes spending on advertising, digital tools, remodels, relocations and restaurant equipment. The company said it had refranchised 135 restaurants through October 23rd, 2026, and expects to refranchise a couple hundred restaurants during the year, with activity accelerating in 2027. It is working toward closing Restaurant Holdings by the end of 2027.

At Tim Hortons, the company is pursuing beverage and food innovation and loyalty partnerships. Its September 2026 partnership with Canadian Tire lets members earn Canadian Tire money alongside Tim’s rewards. Internationally, Burger King surpassed 13,000 restaurants outside the U.S. and Canada in Q3 2026, and Popeyes crossed 2,000.

Structural risks

• Economic conditions can reduce discretionary spending. The company also faces currency fluctuations, trade restrictions, tariffs and political or economic instability across its international markets.
• Franchisees may fail to meet operating, sanitation, privacy or cybersecurity requirements. Franchisee profitability also matters to restaurant development; the company said record-high beef inflation had been a headwind to Burger King system profitability.
• The Tim Hortons supply chain faces potential disruptions at manufacturing and warehousing facilities, shortages of coffee beans or other ingredients, and higher transportation, food and procurement costs. Operating facilities also brings equipment, inventory and overhead obligations.
• The company’s leverage and debt-service obligations could adversely affect its business. It said less than 10% of debt was exposed to floating rates on an all-in net basis in Q3 2026.
• Failure to protect personal information or comply with data-protection laws could bring penalties, reputational harm and costs. Regulations also cover food safety, employment, franchise relationships and other aspects of restaurant operations.

Leadership

3G RBH owns approximately 22% of the combined voting power in Restaurant Brands International. Its interests may differ from those of other shareholders.

Bottom line

Our reading

Our reading: Restaurant Brands is principally a franchisor whose recurring royalties depend on restaurant sales, alongside a substantial Tim Hortons supply chain and a smaller company-operated restaurant business. Its brands and international partners give it several routes to expansion, but franchisee profitability and execution matter to that growth. Debt obligations, supply costs and uneven performance across brands remain important exposures.