QSR — Restaurant Brands International Inc.

Summary of Restaurant Brands International Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Comparable Sales Growth: 2.4% for the full year; 2.6% in Q4.
• Net Restaurant Growth: 2.9% for the full year; noted as a low point, with expectations to improve in 2026.
• System-Wide Sales Growth: 5.3% for the full year.
• Organic Adjusted Operating Income (AOI) Growth: 8.3%, marking the third consecutive year of approximately 8% growth.
• Adjusted EPS Growth: 10.7%, reaching $3.69 per share.
• Free Cash Flow: Nearly $1.6 billion generated in 2025.
• Franchisee Profitability: Varied across brands; Tim Hortons at CAD 295,000, Burger King U.S. at $185,000 (down from $205,000), and Popeyes at $235,000.

2. Strategic Updates and Business Highlights:

• Burger King China: Transitioned to a joint venture with CPE, aiming to double the restaurant footprint by 2030.
• Tim Hortons: Achieved 19 consecutive quarters of positive comparable sales; returned to net restaurant growth in Canada.
• International Segment: Strong performance with 4.9% comparable sales growth, driven by effective local strategies and market conditions.
• Popeyes: New leadership appointed to improve operational consistency; focus on core menu items and franchisee support.
• Firehouse Subs: Continued momentum with 7.7% net restaurant growth and over $100,000 in franchisee profitability.

3. Forward Guidance and Outlook:

• 2026 Expectations: Aiming for 8% organic AOI growth and a return to 5% net restaurant growth.
• System Same-Store Sales Target: Aiming for 3% or higher as part of long-term growth algorithm.
• Dividend Increase: Targeting a 5% increase to $2.60 per share, marking the 14th consecutive year of dividend growth.

4. Bad News, Challenges, or Points of Concern:

• Popeyes Performance: Comparable sales down 3.2% for the year; franchisee profitability declined, prompting leadership changes.
• Commodity Inflation: Significant beef cost increases (over 20% year-on-year) impacted profitability, particularly for Burger King.
• Franchisee Bankruptcy: One large franchisee in the Popeyes system declared bankruptcy, raising concerns about overall franchisee health.
• Market Conditions: The consumer environment remains challenging, with macroeconomic pressures affecting spending behavior.

5. Notable Q&A Insights:

• Tim Hortons Growth: Focus on expanding PM food offerings and enhancing speed of service; loyalty program membership is growing, with 33% of sales from loyalty members.
• International Performance: Strong growth attributed to structural market advantages and effective local strategies, particularly in Europe and Asia.
• Burger King U.S. Sentiment: Franchisee sentiment is improving due to operational enhancements and successful marketing campaigns, such as the SpongeBob promotion.
• Popeyes Strategy: Emphasis on core product focus and operational consistency to regain market share; new leadership expected to drive improvements.

Overall, while RBI demonstrated solid financial performance and strategic initiatives in 2025, challenges remain, particularly in the Popeyes brand and commodity cost pressures. The company is optimistic about its growth trajectory moving into 2026, backed by strong fundamentals and strategic partnerships.