Restaurant Brands International (NYSE:QSR) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Restaurant Brands International (NYSE:QSR) (TSE:QSR) posted its quarterly earnings data on Thursday. The restaurant operator reported $1.10 EPS for the quarter, topping analysts’ consensus estimates of $1.08 by $0.02, FiscalAI reports. Restaurant Brands International had a return on equity of 33.43% and a net margin of 13.12%. The company had revenue of $2.52 billion for the quarter, compared to the consensus estimate of $2.55 billion. During the same quarter in the previous year, the business earned $1.03 EPS. The company’s quarterly revenue was up 3.1% compared to the same quarter last year.

Here are the key takeaways from Restaurant Brands International’s conference call:

• Strong Q3 performance: Same-store sales rose 3.8%, net restaurant growth was 3%, and system-wide sales increased 6.2%, driving 6.7% organic adjusted operating income growth and 6.9% adjusted EPS growth.
• Burger King U.S. momentum accelerated, with same-store sales up 8.4% and the brand reclaiming the No. 2 position in the U.S. burger category. Management cited continued opportunities from restaurant remodels, menu upgrades, operations, and family-focused collaborations.
• Popeyes remained a weak spot, with same-store sales down 1.8%; management said the return to positive comparable sales will take longer than previously expected. The $6 Big Box promotion was less incremental than anticipated, while reducing the wings offering created additional year-over-year pressure.
• International growth remains strong, with 3.9% same-store sales growth, 5.6% net restaurant growth, and improving economics in markets including China, Japan, Korea, Brazil, and Germany. Popeyes international system sales have nearly doubled in two years to more than $2 billion across over 50 markets.
• RBI returned $569 million to shareholders in Q3, including $274 million in share repurchases, and remains on track to repurchase roughly $500 million for the year. The company also reiterated its goal of reaching investment-grade leverage by 2028 while progressing toward sunsetting the Restaurant Holdings segment by the end of 2027.

Restaurant Brands International Stock Down 1.9%

QSR traded down $1.40 during midday trading on Thursday, hitting $73.12. 5,502,610 shares of the company’s stock traded hands, compared to its average volume of 2,684,111. The company has a market cap of $25.50 billion, a PE ratio of 19.01, a price-to-earnings-growth ratio of 2.18 and a beta of 0.52. The stock’s fifty day simple moving average is $74.77 and its 200-day simple moving average is $73.92. The company has a debt-to-equity ratio of 2.49, a current ratio of 1.01 and a quick ratio of 0.92. Restaurant Brands International has a one year low of $64.52 and a one year high of $81.96.

Restaurant Brands International Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 5th. Investors of record on Tuesday, December 22nd will be issued a $0.65 dividend. The ex-dividend date is Tuesday, December 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 3.6%. Restaurant Brands International’s dividend payout ratio is currently 69.89%.

Wall Street Analyst Weigh In

QSR has been the subject of several recent research reports. Robert W. Baird increased their target price on shares of Restaurant Brands International from $80.00 to $85.00 and gave the company a “neutral” rating in a research note on Monday, August 24th. Guggenheim upped their target price on Restaurant Brands International from $85.00 to $86.00 and gave the company a “buy” rating in a report on Friday, September 18th. JPMorgan Chase & Co. reduced their price target on shares of Restaurant Brands International from $82.00 to $78.00 and set an “overweight” rating for the company in a research report on Tuesday, September 29th. Argus cut shares of Restaurant Brands International from a “buy” rating to a “hold” rating in a report on Friday, September 25th. Finally, Jefferies Financial Group lowered their price objective on shares of Restaurant Brands International from $82.00 to $78.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 29th. Sixteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Restaurant Brands International has an average rating of “Moderate Buy” and an average target price of $83.52.

Insider Transactions at Restaurant Brands International

In other Restaurant Brands International news, insider Axel Schwan sold 57,574 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $81.14, for a total value of $4,671,554.36. Following the completion of the sale, the insider directly owned 209,908 shares of the company’s stock, valued at $17,031,935.12. The trade was a 21.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 1.22% of the stock is owned by company insiders.

Restaurant Brands International News Roundup

Here are the key news stories impacting Restaurant Brands International this week:

• Positive Sentiment: QSR reported third-quarter adjusted earnings of $1.10 per share, exceeding the $1.08 analyst consensus and rising from $1.03 a year earlier. Consolidated system-wide sales increased 6.2% year over year. Restaurant Brands Beats Q3 Earnings Estimates
• Positive Sentiment: Burger King was the main growth driver, with U.S. comparable sales up 8.4%, suggesting that value promotions and the brand’s turnaround efforts are attracting more customers. International comparable sales also grew 3.9%. Restaurant Brands reports mixed results
• Positive Sentiment: Management maintained its outlook for approximately 8% organic adjusted operating-income growth in 2026 and said RBI has returned $1.3 billion to shareholders year to date through dividends and share repurchases. Restaurant Brands International Reports Third Quarter 2026 Results
• Positive Sentiment: The company declared a quarterly dividend of $0.65 per share, equivalent to $2.60 annually and a yield of approximately 3.6%. The dividend is payable January 5 to shareholders of record December 22.
• Neutral Sentiment: TD Cowen reaffirmed its “hold” rating while maintaining a $78 price target, indicating some potential upside but limited analyst conviction following the results.
• Negative Sentiment: Revenue of roughly $2.52 billion increased 3.1% year over year but fell short of expectations near $2.55 billion. The revenue miss likely overshadowed the earnings beat and contributed to the stock’s decline. Restaurant Brands Q3 Profit Exceeds Forecasts Despite Revenue Miss

About Restaurant Brands International

Restaurant Brands International Inc (NYSE:QSR) is a global quick-service restaurant company that owns and operates a portfolio of restaurant brands, primarily through franchised and licensed locations. Its brands include Tim Hortons, Burger King, Popeyes and Firehouse Subs, which serve coffee, baked goods, burgers, chicken, sandwiches and other prepared foods.

The company was formed in 2014 through the merger of Burger King Worldwide and Tim Hortons. RBI expanded its portfolio through the acquisition of Popeyes Louisiana Kitchen in 2017 and Firehouse Restaurant Group in 2021.