Restaurant Brands International Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did QSR Beat Earnings? Q1 2025 Results
Restaurant Brands International delivered a mixed first quarter for 2025, falling short of Wall Street expectations on both the top and bottom lines as currency headwinds and soft comparable sales weighed on results. Adjusted diluted EPS came in at $0.75, missing the $0.78 consensus estimate by 4.09%, while revenue of $2.11 billion trailed the $2.15 billion forecast by 1.94%, even as reported revenue surged 21.3% year-over-year, a figure inflated by the consolidation of acquired company-operated restaurants rather than underlying growth. The more telling organic picture was considerably more modest, with global comparable sales essentially flat at 0.1% and a $61.00 million foreign exchange drag compressing results across segments. Burger King posted a -1.3% comparable sales decline and Popeyes fared worse at -4.0%, offsetting a standout performance from Firehouse Subs, which grew system-wide sales 7.3%. Despite the quarter's shortfalls, management reiterated its full-year guidance for 8%+ organic Adjusted Operating Income growth and expressed confidence in building momentum through the remainder of 2025.
- Consolidated system-wide sales growth of 2.8% YoY including 8.6% in International
- Global comparable sales of 0.1%, or over 1% adjusting for Leap Day
- Net restaurant growth of 3.3% with system restaurant count reaching 32,149
- Firehouse Subs led with 7.3% system-wide sales growth and 5.9% net restaurant growth
- Unfavorable FX impact of $61 million on total revenues and $20 million on AOI
- Supply chain sales increase due to commodity price increases
- Burger King advertising fund contribution rate increase from 4% to 4.5%
- Popeyes comparable sales declined 4.0%, weakest among the brands
- Tim Hortons Canada comparable sales slightly positive at 0.1%
“We are making solid progress executing the fundamentals of our business, despite a slower start to the year. We have clear growth plans across each of our brands and strong alignment with our franchisees. We're seeing encouraging momentum in Q2 and combined with responsible cost management, are on track to deliver stronger results through the balance of the year and achieve at least 8 percent organic adjusted operating income growth in 2025.”
Restaurant Brands International CEO, on the earnings call
Forward Guidance & Outlook
RBI remains on track for 8%+ organic Adjusted Operating Income growth in 2025. Management sees encouraging momentum in Q2 and expects stronger results through the balance of the year. 2025 guidance includes: Adjusted Interest Expense, net between $500-$520 million; RH Segment G&A of approximately $100 million; Total Capex and Cash Inducements between $400-$450 million; and Segment G&A (excluding RH) now expected between $600-$620 million. Long-term algorithm (2024-2028) targets 3%+ Comparable Sales and 8%+ organic AOI growth on average, with net restaurant growth now expected to reach 5%+ toward the end of the algorithm period.
QSR YoY Financials
QSR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.