Restaurant Brands International Stock Earnings Reports

RBI reported a strong Q3 2025 with broad-based top- and bottom-line momentum. Key results: system-wide sales +6.9%, organic adjusted operating income (AOI) +8.8%, and nominal adjusted EPS +10.7%. Tim Hortons (≈44% of AOI) delivered another quarter of outperformance in Canada (comps +4.2%), led by breakfast, cold beverages and digital/loyalty initiatives. International (≈26% of AOI) accelerated — comps +6.5% and system sales growth >12% — with notable strength in France, U.K., China and other markets. Burger King U.S. (≈17% of AOI) showed ongoing turnaround progress (U.S. comps +3.2%), driven by operations, Whopper-led marketing and remodels (≈400 expected in 2025). Popeyes underperformed (U.S. comps -2%); management is refocusing on core chicken platforms and franchisee support. Firehouse Subs continued fast development (comps +2.6%, net unit growth +7.7%). Financial & capital allocation highlights: generated $566M free cash flow in Q3-to-date, returned $282M to shareholders, ended Q3 with ~$2.5B liquidity and net leverage ~4.4x. Management reiterated a target of at least +8% organic AOI for 2025, maintained guidance for adjusted net interest expense (~$520M), net unit growth ~3% and reiterated plans to simplify the model via refranchising (50–100 BK refranchisings in 2025, ~half via Crown Your Career) and divest Burger King China (process managed with Morgan Stanley). Notable headwinds: elevated beef costs (high-teens % y/y for BK U.S. beef) pressuring margins and franchisee cash flow near-term, though management expects the increase to be temporary. Updated guide items: segment G&A expected at the low end of $600–$620M, CapEx & cash inducements ~ $400M for 2025, Tim Hortons supply chain margin ~19% full-year (Q4 softer). Overall tone: confident in execution, disciplined capital allocation, focused on simplifying to a more capital-light, highly franchised model while addressing near-term commodity and Popeyes execution issues.