Restaurant Brands International Inc.

What they do

The company owns and franchises four QSR brands with over 33,000 restaurants in more than 120 countries. Over 95% of system-wide restaurants are franchised, generating revenue primarily from royalties, advertising, and rental income. It also operates Company restaurants, largely from the Carrols Acquisition, which it plans to refranchise.

Revenue drivers

• Tim Hortons — North American coffee and baked goods chain; 6,232 restaurants globally with $8.25B system-wide sales in 2025.
• Burger King — World's second largest QSR hamburger chain; 19,900 restaurants with $29.37B system-wide sales in 2025.
• Popeyes — Second largest QSR chicken concept; 5,413 restaurants with $7.79B system-wide sales in 2025.
• Firehouse Subs — North American sandwich chain; 1,496 restaurants with $1.36B system-wide sales in 2025.

Recent performance

In Q2 2026, total revenues were $2.52B, up from $2.41B in Q2 2025. Income from operations grew 48.4% to $716M, and diluted EPS from continuing operations was $1.45 versus $0.58. Comparable sales grew 3.8% globally, led by 8.5% at Burger King US and 5.5% in International. System-wide sales grew 6.4% year-over-year, and the company returned $435M to shareholders via dividends and buybacks.

Strategy

Management focuses on three pillars: Quality, Service, and Convenience. They invest in product innovation, digital ordering, loyalty programs, and restaurant renovations. The company is refranchising the vast majority of Carrols restaurants and seeking new partners for Popeyes China and Firehouse Subs Brazil. At Investor Day, they outlined a strategy emphasizing franchisee profitability and operational excellence, currently being applied across all brands.

Risks

• Consumer spending sensitivity — Economic downturns reduce discretionary spending, shifting guests to value menus and hurting sales.
• Intense competition — Competes with large chains, independents, and delivery aggregators, which may increase costs and pressure margins.
• Franchisee profitability — Franchisee financial health is critical; if franchisees underperform, system-wide sales and royalties could decline.
• Refranchising execution — Delays or poor outcomes in selling Carrols restaurants or finding partners for China/Brazil could impact results.

Outlook

Management says they remain on track for 8% organic Adjusted Operating Income growth in 2026. They project continued benefits from the diversified portfolio and the strategy outlined at Investor Day. The company guides to sustained comparable sales growth and double-digit earnings growth, led by Burger King's turnaround and International momentum.