Restaurant Brands International Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did QSR Beat Earnings? Q2 2025 Results
Restaurant Brands International delivered a split verdict in Q2 2025, beating on revenue while falling just short on the bottom line. The parent of Burger King, Tim Hortons, and Popeyes posted adjusted diluted EPS of $0.94, missing the $0.97 consensus estimate by 2.84%, even as total revenue climbed 15.9% year-over-year to $2.41 billion, ahead of the $2.34 billion Wall Street had expected. The top-line strength was driven largely by higher supply chain sales tied to commodity price increases and broad system-wide sales growth of 5.3%, though the adjusted earnings gain of 9.2% was tempered by rising company restaurant expenses connected to the 2024 Carrols acquisition. Segment performance was uneven; Tim Hortons led with 3.9% system-wide sales growth and comparable sales of 3.4%, while Popeyes lagged with negative 1.4% comparable sales. Notably, both Burger King and Tim Hortons reached their highest customer satisfaction scores in years, a signal management is leaning on as it reaffirms its 2025 guidance for organic adjusted operating income growth of at least 8%.
- Consolidated comparable sales accelerated to 2.4%, up from 1.9% in Q2 2024
- Tim Hortons Canada comparable sales of 3.6% and Burger King International comparable sales of 4.1%
- International system-wide sales growth of 9.8%
- Higher supply chain sales from increased commodity prices and system-wide sales growth
- Lower compensation-related G&A expenses across multiple segments
- Non-recurrence of Fuel the Flame expenses in Burger King US segment
- Higher advertising fund contribution rate at Burger King US
“We made great progress in the second quarter advancing our strategic priorities, with improved sales trends and strong execution led by our two largest businesses, Tim Hortons and International. Across the system, we're seeing strong franchisee alignment, impactful marketing, and focused operational initiatives drive meaningful improvements in the guest experience. With positive momentum heading into the back half of the year, we remain confident in our ability to deliver 8%+ organic Adjusted Operating Income growth in 2025.”
Restaurant Brands International CEO, on the earnings call
Forward Guidance & Outlook
RBI continues to expect 8%+ organic Adjusted Operating Income growth in 2025. For 2025, the company guides Segment G&A (excluding RH) between $600 million and $620 million, RH Segment G&A of approximately $100 million, Total Capex and Cash Inducements between $400 million and $450 million, and now expects Adjusted Interest Expense, net of around $520 million. The long-term algorithm (2024-2028) targets 3%+ comparable sales, 8%+ organic AOI growth, and 5%+ net restaurant growth toward the end of the algorithm period.
QSR YoY Financials
QSR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.