Restaurant Brands International Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated Total Revenues were $2,525 million for the three months ended September 30, 2026, compared to $2,449 million in the prior year period; for the nine months ended September 30, 2026, revenues were $7,309 million versus $6,968 million.
• Income from Operations was $696 million for the quarter (up 5.0% year-over-year) and $2,018 million for the nine months (up 27.7% year-over-year).
• Net Income from Continuing Operations was $704 million for the quarter ($1.54 diluted EPS) and $1,814 million for the nine months ($3.95 diluted EPS), compared to $440 million ($0.96 diluted EPS) and $927 million ($2.03 diluted EPS) respectively in the prior year periods.
• Adjusted Operating Income (AOI) was $737 million for the quarter (6.7% organic growth) and $2,061 million for the nine months (7.8% organic growth).
• Adjusted EBITDA was $829 million for the quarter and $2,345 million for the nine months.
• Adjusted Diluted EPS was $1.10 for the quarter and $3.03 for the nine months.
• Net Leverage ratio was 4.0x as of September 30, 2026, down from 4.4x in the prior year period.
• Free Cash Flow for the nine months ended September 30, 2026, was $1,127 million.
• Total Capex and Cash Inducements were $105 million for the quarter and $219 million for the nine months.

Guidance and Future Outlook:

• RBI maintains its 2026 financial guidance: Segment G&A (excluding RH) between $600 million and $620 million; RH AOI of approximately $10 to $20 million; Adjusted Interest Expense, net between $500 million and $520 million; and Consolidated capital expenditures, tenant inducements, and incentives of around $400 million.
• Long-term algorithm expectations for 2024-2028 include 3%+ Comparable Sales growth and 8%+ organic Adjusted Operating Income growth.
• RBI targets 5%+ Net Restaurant Growth towards the end of the algorithm period.
• The company remains on track for 8% organic Adjusted Operating Income growth in 2026.

Business Segments and Product Lines:

• Tim Hortons (TH): System-wide sales growth was 2.0% for the quarter (1.6% for nine months); comparable sales were 1.5% (1.0% for nine months). Total revenues were $1,136 million for the quarter and $3,270 million for the nine months.
• Burger King (BK): System-wide sales growth was 7.6% for the quarter (7.1% for nine months); comparable sales were 8.3% (7.6% for nine months), with US comparable sales at 8.4%. Total revenues were $396 million for the quarter and $1,157 million for the nine months.
• Popeyes (PLK): System-wide sales growth was (1.0)% for the quarter ((2.7)% for nine months); comparable sales were (1.8)% ((4.5)% for nine months). Total revenues were $204 million for the quarter and $593 million for the nine months.
• Firehouse Subs (FHS): System-wide sales growth was 8.3% for the quarter (7.7% for nine months); comparable sales were 1.5% (0.5% for nine months). Net restaurant growth was 7.8% for both periods. Total revenues were $65 million for the quarter and $186 million for the nine months.
• International (INTL): System-wide sales growth was 9.0% for the quarter (10.2% for nine months); comparable sales were 3.9% (5.0% for nine months). Total revenues were $289 million for the quarter and $817 million for the nine months.
• Restaurant Holdings (RH): Includes Carrols Burger King, PLK China, and FHS Brazil restaurants. System-wide sales were $488 million for the quarter and $1,443 million for the nine months. Adjusted Operating Income was $5 million for the quarter and $21 million for the nine months.
• Burger King is executing its "Reclaim the Flame" plan, with $198 million funded out of up to $550 million planned for Royal Reset investments through year-end 2028.

Market and Competitive Landscape:

• Global comparable sales increased 3.8% for the quarter, including 8.4% at Burger King US and 3.9% at International.
• Consolidated System-wide Sales grew 6.2% year-over-year, including 9.0% in International.
• Net Restaurant Growth was 3.0% for the quarter and nine months.
• System Restaurant Count at period end was 33,401.
• RBI operates over 33,000 restaurants in more than 120 countries and territories with over $49 billion in annual system-wide sales.

Risks and Challenges:

• The press release notes risks including macroeconomic pressures, currency fluctuations, commodity prices, interest rate fluctuations, and inflationary pressures affecting consumer spending.
• Risks related to franchisee financial stability, labor and employment laws, and the ability to refranchise Carrols restaurants or find investors for PLK China and FHS Brazil to sunset the RH segment.
• Potential impacts from tariffs, tax law changes, and global economic conditions.

Management Commentary and Tone:

• CEO Josh Kobza stated that RBI's strengths—iconic brands, ability to invest for long-term growth, and talented teams—are on display, with global comparable sales led by outperformance at Burger King and steady growth at International and Tim Hortons.
• Management emphasized listening to guests to deliver quality, service, and convenience.
• The tone regarding the "Reclaim the Flame" plan and refranchising efforts was forward-looking and focused on long-term value creation.

Other Key Points:

• RBI returned $1.3 billion of capital to shareholders year-to-date through dividends and share repurchases.
• The Board declared a dividend of $0.65 per common share for the fourth quarter of 2026, payable January 5, 2027.
• Share repurchase program authorization of up to $1,000 million was approved; $768 million remained available as of September 30, 2026.
• Subsequent to September 30, 2026, RBI repurchased an additional $17 million of common shares, leaving $751 million remaining under the authorization.
• BK China was deconsolidated in January 2026 following a joint venture with CPE Alder Investment Limited, with RBI retaining a 17% equity interest.
• The RH segment is planned to be sunset as the company refranchises Carrols restaurants and finds new investors for PLK China and FHS Brazil.