Tim Hortons Boosts Restaurant Brands Growth but Investors Are Not Impressed

Restaurant Brands International (NYSE: QSR) reported Q4 2025 results that met earnings expectations while delivering modest revenue upside, capping a year marked by steady execution across its global quick-service restaurant portfolio. Shares retreated marginally in early trading following the report but are still up 2.8% year-to-date.

Financial Snapshot

The company posted adjusted diluted EPS of $0.96, matching consensus estimates. Revenue reached $2.47 billion, beating the $2.44 billion estimate by 1.2% and representing 7.4% year-over-year growth.

Adjusted operating income climbed 16.5% to $674 million, while reported operating income declined 2.2% to $621 million. Net income from continuing operations increased 5.8% to $274 million, though higher tax expenses tempered bottom-line gains.

Brand Performance

Tim Hortons led segment growth with revenue of $1.14 billion, up 10.6%, and comparable sales growth of 2.8% in Canada. The International segment posted $263 million in revenue, climbing 10.8% with 6.1% comparable sales gains.

Burger King generated $383 million in revenue, up 2.1%, with U.S. comparable sales increasing 2.6%. Popeyes revenue declined 2.5% to $196 million.

Capital Allocation and Outlook

The company returned $1.1 billion to shareholders in 2025 through dividends and reduced net leverage to 4.2x from 4.6x. The company declared a Q1 2026 dividend of $0.65 per share and set a 2026 annual dividend target of $2.60 per share.

CEO Josh Kobza noted, “Our performance in 2025 reflects the progress we’ve made strengthening our brands and our system, driven by consistent execution from our teams and franchisees.” The company achieved its third consecutive year of roughly 8% organic adjusted operating income growth and maintained long-term targets of 3%+ comparable sales growth and 8%+ organic AOI growth through 2028.