Summary of Restaurant Brands International (Q2 2026 Earnings Call)

1Key Financial Results and Metrics

Same-Store Sales Growth: 3.8%

Net Restaurant Growth: 2.9%

System-Wide Sales Growth: 6.4%

Organic Adjusted Operating Income Growth: 6.7%

Adjusted EPS Growth: 12.9% to $1.07 from $0.94 YoY

Free Cash Flow: $501 million

Capital Returned to Shareholders: $435 million

Total Liquidity: Approximately $2.3 billion with a net leverage ratio of 4.1x

2Strategic Updates and Business Highlights

Strong Performance Across Brands: Tim Hortons and International segments achieved their 21st consecutive quarters of positive same-store sales growth. Burger King U.S. outperformed the industry with 8.5% same-store sales growth.

Tim Hortons: Launched new marketing campaigns and menu items, including the Harry Potter partnership and new beverage innovations. Plans for 80 gross openings in Canada this year.

International Growth: Strong performance in markets like Germany, Spain, Brazil, China, Korea, and Japan, with a focus on local innovations and value offerings.

Burger King: Continued elevation strategy with new service initiatives and menu improvements. Strong focus on family and kids' meals, with significant growth in kids' meal AUVs.

Popeyes: Focused on operational improvements and value consistency, with expectations for a return to positive same-store sales in the second half of the year.

Firehouse Subs: Achieved 7.5% system-wide sales growth with successful new product launches.

3Forward Guidance and Outlook

2026 Financial Guidance: Continued expectation for 8% organic adjusted operating income growth. Anticipation of net restaurant growth accelerating towards the 5% target by 2028.

Challenges Ahead: Expected FX headwinds of approximately $10 million to AOI and $0.02 to $0.03 to adjusted EPS for the second half of 2026.

4Bad News, Challenges, or Points of Concern

Tim Hortons: Canadian same-store sales were flat at +0.1% due to weaker marketing performance early in the quarter. Competitive pressures in Canada are increasing, with new entrants into the market.

Popeyes: Experienced a same-store sales decline of 5.2%, indicating ongoing operational challenges despite improvements in product satisfaction.

Beef Costs: Continued high beef prices are impacting profitability, with expectations for relief only in early 2027.

5Notable Q&A Insights

Burger King's Future: Executives expressed confidence in continued growth driven by operational improvements and franchisee alignment. Emphasis on ongoing menu elevation and modernization of restaurants.

Tim Hortons' Competitive Landscape: Executives acknowledged the need for faster innovation, particularly in cold beverages, to maintain market share against increasing competition.

Popeyes' Recovery: Management remains optimistic about returning to positive comps in the second half of the year, citing effective value strategies and operational improvements.

Refranchising Strategy: The refranchising process is on track, with a strong pipeline of interested buyers, although the pace may be slower than initially anticipated. Overall, Restaurant Brands International demonstrated solid financial performance in Q2 2026, with strategic initiatives in place to address challenges and capitalize on growth opportunities across its diverse portfolio of brands.