Restaurant Brands International (NYSE:QSR) reported third-quarter results marked by 3.8% comparable sales growth, 3% net restaurant growth and 6.2% system-wide sales growth, as strength at Burger King and the company’s international operations helped offset continued sales pressure at Popeyes.
Chief Executive Officer Josh Kobza said organic adjusted operating income rose 6.7% during the quarter, extending a streak of five consecutive quarters in which comparable sales exceeded 3%. Adjusted earnings per share increased 6.9% year over year to $1.10, Chief Financial Officer Sami Siddiqui said.
Burger King U.S. Drives Growth
Burger King U.S. delivered 8.4% same-store sales growth and 7.5% system-wide sales growth in the third quarter. Kobza said the chain widened its gap versus burger quick-service restaurant peers to nearly 10 percentage points and reclaimed the No. 2 position in the U.S. burger category.
The company attributed the performance to its menu “Elevation” efforts, family-focused marketing collaborations and value offerings. Burger King continued promoting variations of its Whopper and introduced upgraded chicken nuggets during September, with crisper breading, juicier chicken, premium packaging and a revamped sauce lineup, according to Kobza.
The Dragon Ball Z collaboration and the nugget launch helped lift King Jr. average unit volumes to their highest level in more than a decade, Kobza said. He added that $5 Duos and $7 Trios continued to support value transactions while the company experienced growth in more premium menu categories.
Management said the Burger King turnaround has further room to run. Kobza said roughly 60% of the U.S. system has been remodeled, leaving a substantial number of restaurants still to be updated. Siddiqui said remodeled “Sizzle” locations are averaging more than $2.2 million in annual unit volumes and that the company expects most of the system to have a modern image by 2028 or 2029, though the timeline may be modestly longer than previously expected due to elevated beef costs affecting franchisee profitability.
Executive Chairman Patrick Doyle said Burger King’s consumer consideration rate has increased to 78% from 70% three years ago, indicating that more consumers are including the brand among their restaurant options.
Tim Hortons Improves, International Continues Expansion
Tim Hortons Canada posted 1.8% same-store sales growth, an improvement from the prior quarter. Kobza said sales rose across dayparts and menu categories, with particular improvement in afternoon food. Cold beverages increased nearly 5%, supported by the July launch of Matcha drinks.
More than two-thirds of Matcha beverage sales occur during the afternoon daypart, while nearly 75% of Matcha orders include another item, Kobza said. The company also cited growth from its Melts platform and the return of the Turkey Bacon Club with honey mustard. Tim Hortons introduced a Canadian Tire loyalty partnership during September, with early account linkages ahead of expectations and potential access to at least 5 million additional members.
Management said it sees opportunities to build Tim Hortons through additional Canadian development, stronger afternoon beverage and food sales, and longer-term growth in the U.S. Siddiqui also said roughly half of the company’s long-term capital expenditures are expected to go toward Tim Hortons, including investments tied to its property business.
In the international segment, same-store sales grew 3.9% and net restaurant growth was 5.6%, producing 9% system-wide sales growth. Kobza highlighted strong performance in Germany, Brazil, China, Japan and Korea. Burger King Japan recorded its sixth consecutive quarter of double-digit same-store sales growth, while Burger King China posted its third consecutive quarter of double-digit growth.
Burger King surpassed 13,000 restaurants outside the U.S. and Canada, while Popeyes exceeded 2,000 international restaurants and now operates in more than 50 markets. Popeyes’ international system-wide sales have reached more than $2 billion, nearly double the level of two years ago, according to management.
Popeyes Sales Decline as Company Simplifies Operations
Popeyes recorded a 1.8% decline in same-store sales. Kobza said the company saw improvement in service satisfaction, value for money and food quality, and said guest satisfaction with Popeyes’ core chicken reached a record level. Traffic trends also improved sequentially, he said.
However, the return of the $6 Big Box promotion in September was less incremental than the company expected. Popeyes also scaled back its wings offering as part of an effort to simplify operations and concentrate on bone-in chicken, tenders and sandwiches. Kobza said the decision created year-over-year sales pressure but was necessary for the brand’s long-term health.
As a result, management no longer expects Popeyes to return to positive same-store sales during the second half of 2026. Siddiqui clarified that Popeyes North America unit growth is expected to be softer than last year, while Popeyes International remains a growing contributor to development.
Firehouse Subs posted 1.5% same-store sales growth and 7.8% net restaurant growth, resulting in 8.3% system-wide sales growth. The chain opened its 1,500th North American restaurant, including its 200th Canadian location.
Cash Flow, Buybacks and 2026 Outlook
Restaurant Brands generated more than $500 million in free cash flow during the quarter and returned $569 million to shareholders through dividends and stock repurchases. The company bought back $274 million of shares in the quarter and has returned $1.3 billion to shareholders year to date.
Siddiqui said the company remains on track to repurchase about $500 million of stock in 2026 and return more than $1.6 billion of capital to shareholders for the year. It ended the quarter with approximately $2.2 billion of total liquidity, including $1 billion of cash, and a net leverage ratio of 4.0 times.
The company maintained its 2026 guidance for segment general and administrative expense excluding Restaurant Holdings of $600 million to $620 million, net adjusted interest expense of $500 million to $520 million, and capital expenditures and cash inducements of about $400 million. It also continues to target corporate investment-grade leverage by 2028.
About Restaurant Brands International (NYSE:QSR)
Restaurant Brands International Inc (NYSE:QSR) is a global quick-service restaurant company that owns and operates a portfolio of restaurant brands, primarily through franchised and licensed locations. Its brands include Tim Hortons, Burger King, Popeyes and Firehouse Subs, which serve coffee, baked goods, burgers, chicken, sandwiches and other prepared foods.
The company was formed in 2014 through the merger of Burger King Worldwide and Tim Hortons. RBI expanded its portfolio through the acquisition of Popeyes Louisiana Kitchen in 2017 and Firehouse Restaurant Group in 2021.
