Restaurant Brands International Inc. (QSR) Earnings & Analysis

Latest quarter

Restaurant Brands International reported Q2 FY2026 revenue of $2.5 billion, up from $2.4 billion a year earlier. Revenue beat the consensus by 0.61%, although both the reported and consensus figures rounded to $2.5 billion. Adjusted earnings per share were $1.07, above the consensus estimate of $1.03.

The filing attributed revenue growth primarily to higher supply chain sales and increased system-wide sales across the international, Burger King, Tim Hortons and Firehouse Subs segments. It said higher commodity prices contributed to both supply chain sales and costs. The company also reported higher segment income across those businesses, partly offset by a decline at Popeyes.

Diluted earnings per share rose to $1.45 from $0.57. The filing attributed higher operating income partly to a foreign-exchange gain, compared with a loss a year earlier, and said net income also benefited from an income tax benefit instead of a prior-year tax expense.

Restaurant Brands reported an operating margin of 28.4%, up from 20.0%, and a gross margin of 49.1%, compared with 48.9%. Free cash flow rose to $491.0 million from $413.0 million.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

In its filing, Restaurant Brands said franchise sales are not recorded as company revenue, but royalties and advertising fund contributions are calculated as a percentage of those sales. The filing also said higher commodity prices increased supply chain costs during the quarter.

Guidance

Restaurant Brands expects 8.00% organic adjusted operating income growth in FY2026. The company’s outlook also calls for RH adjusted operating income of $10.0 million to $20.0 million and segment general and administrative expenses excluding RH of $600.0 million to $620.0 million. It expects consolidated capital expenditures and cash inducements, including RH, of around $400.0 million.