Restaurant Brands Q3 system-wide sales rise 6.2% on Burger King gains

Restaurant Brands International Inc. (QSR) reported third-quarter 2026 results on Oct. 29. Adjusted diluted earnings per share were $1.10, in line with the $1.10 consensus estimate compiled by Finnhub. Revenue of $2.525 billion came in below the $2.57 billion estimate.

The company said in its earnings release that system-wide sales rose 6.2% in the quarter, to $12.972 billion, and that comparable sales grew 3.8%. Both figures cover the three months ended Sept. 30.

The company is one of the world's largest quick service restaurant companies, with over $49 billion in annual system-wide sales and more than 33,000 restaurants in more than 120 countries and territories, according to its release.

Here's how the company did:

• Adjusted diluted EPS: $1.10 vs. $1.03 a year earlier, in line with the $1.10 consensus estimate compiled by Finnhub
• Revenue: $2.525 billion vs. $2.449 billion a year earlier, below the $2.57 billion consensus estimate compiled by Finnhub
• Diluted EPS from continuing operations (GAAP): $1.54 vs. 96 cents a year earlier
• Adjusted operating income: $737 million vs. $702 million
• Adjusted EBITDA: $829 million vs. $794 million

Total revenues rose 3.1% from a year earlier. Income from operations rose 5.0% to $696 million, from $663 million. Net income from continuing operations was $704 million, against $440 million a year earlier.

Net leverage was 4.0x, down from 4.4x a year earlier. The company said it has returned $1.3 billion to shareholders year to date through dividends and share repurchases.

CEO Josh Kobza said in the release: “Those strengths are on display again this quarter, with over 3% global comparable sales led by outperformance at Burger King and steady growth at International and Tim Hortons.”

Segment results

Burger King was the main driver. Its system-wide sales grew 7.6% and comparable sales rose 8.3%. Its adjusted operating income reached $136 million, up from $123 million, and its total revenues were $396 million, against $387 million.

Tim Hortons adjusted operating income rose to $317 million from $304 million. The company said tariff refunds and higher system-wide sales drove the increase. Total revenues were $1,136 million, against $1,125 million.

Popeyes comparable sales fell 1.8%, and its adjusted operating income dropped to $58 million from $63 million. The company said the decline reflected lower Comparable Sales and higher Segment G&A, mainly from compensation-related expenses.

International system-wide sales rose 9.0% and comparable sales rose 3.9%. Its adjusted operating income rose to $205 million from $189 million.

Restaurant Holdings adjusted operating income was $5 million, against $10 million a year earlier, as Company restaurant expenses and Segment G&A rose.

Under its Reclaim the Flame plan, Burger King has funded $198 million of up to $550 million planned toward Royal Reset restaurant investments. The plan includes up to $700 million of investment through year-end 2028.

2026 guidance

The company continues to expect 2026 Segment G&A excluding RH of $600 million to $620 million. It expects RH adjusted operating income of about $10 million to $20 million, adjusted interest expense, net of $500 million to $520 million, and total capital expenditures and cash inducements of around $400 million.

It also continues to expect, on average from 2024 to 2028, 3%+ comparable sales and 8%+ organic adjusted operating income growth.

Capital returns

The board declared a dividend of 65 cents per common share and partnership exchangeable unit for the fourth quarter of 2026. It is payable Jan. 5, 2027, to holders of record at the close of business on Dec. 22, 2026.

In the quarter, the company repurchased 817,041 common shares for $61 million and 2,784,549 Class B exchangeable limited partnership units for $214 million, excluding excise taxes. It had $768 million remaining under its $1,000 million share repurchase authorization as of Sept. 30.

From Sept. 30 through Oct. 23, it repurchased 235,276 common shares for $17 million, leaving $751 million under the authorization.