Restaurant Brands International Inc. (NYSE: QSR) reported fourth‑quarter 2025 results that lifted revenue to $2.47 billion, a 7.4% year‑over‑year increase from $2.30 billion in Q4 2024. The growth was driven by a 6.1% rise in international sales and a 2.8% increase in Canada, while U.S. Burger King and Tim Hortons contributed modest gains. Popeyes, however, posted a 2.5% decline in revenue and a 3.2% drop in comparable sales for the year, offsetting some of the upside in other brands.
The company’s adjusted diluted earnings per share rose to $0.96, beating the consensus estimate of $0.95 by $0.01, or about 1.1%. The beat was largely attributable to disciplined cost control and operational leverage that helped offset higher commodity and labor costs. Management noted that the company maintained pricing power in its core markets, which supported the earnings performance despite inflationary headwinds.
System‑wide sales grew 5.8% and comparable sales increased 3.1%. International sales growth of 6.1% was the main contributor, driven by strong performance in the U.S., Canada, and emerging markets. Canada’s 2.8% rise was supported by Tim Hortons’ digital initiatives. In contrast, Popeyes’ decline highlighted competitive pressure in the U.S. market and the need for continued investment in that brand.
Adjusted operating income climbed 16.5% to $674 million, reflecting a 25.2% operating margin that slipped from 27.7% in the same quarter last year. The margin compression was driven by higher commodity inflation, particularly in beef, and increased supply‑chain costs, while the company’s cost‑control initiatives helped mitigate the impact. The company’s organic adjusted operating income growth for the year was about 8%, consistent with its long‑term target of 8%+ growth through 2028.
Guidance for 2026 remains unchanged, with adjusted diluted EPS expected to be in the range of $1.15 to $1.20 per share. Management reiterated its long‑term targets of 3%+ comparable sales growth and 8%+ organic adjusted operating income growth through 2028, and it confirmed its commitment to refranchising Carrols Burger King restaurants and expanding its international footprint. The company also returned approximately $1.1 billion to shareholders in 2025 through dividends and share repurchases, while reducing net leverage to 4.2x.
Pre‑market trading showed a modest decline of 1.0% to 2.4% in the company’s stock, reflecting investor concerns about margin pressure and the modest nature of the earnings and revenue beats. The market reaction was tempered by Popeyes’ weaker performance and the company’s continued exposure to commodity inflation, which raised questions about the sustainability of its margin profile.
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