Restaurant Brands International Q3 Adjusted EPS Rises to $1.10

Restaurant Brands International (QSR ) reported financial results for the third quarter ended September 30, 2026, on October 29, 2026, with total revenues of $2,525 million, up from $2,449 million a year earlier, and adjusted diluted earnings per share of $1.10, up from $1.03, according to the company’s third-quarter 2026 earnings release. Net income from continuing operations was $704 million, compared with $440 million in the prior-year quarter. All figures are in U.S. dollars.

Consolidated system-wide sales grew 6.2% year over year on a constant-currency basis, with nominal system-wide sales of $12,972 million against $12,282 million in the third quarter of 2025. Global comparable sales rose 3.8%, net restaurant growth was 3.0%, and the system restaurant count stood at 33,401 at period end versus 32,423 a year earlier.

Income from operations was $696 million versus $663 million, and diluted earnings per share from continuing operations were $1.54 versus $0.96. Adjusted operating income, a non-GAAP measure the company defines in the release, was $737 million versus $702 million, which RBI reported as 6.7% organic growth. Adjusted EBITDA was $829 million versus $794 million, and net leverage stood at 4.0x, compared with 4.4x a year earlier.

The quarter’s income tax line was a benefit of $133 million from continuing operations, compared with an expense of $94 million a year earlier. A reconciliation footnote states that the change in the effective tax rate was primarily due to discrete tax benefits resulting from movements in net deferred tax assets in connection with intra-group reorganizations undertaken in 2026, partially offset by the impact of administrative guidance issued by the Organization for Economic Cooperation and Development in 2025.

Chief Executive Officer Josh Kobza pointed to “over 3% global comparable sales led by outperformance at Burger King and steady growth at International and Tim Hortons,” adding that across its brands the company is continuing to listen to guests and act on their feedback.

For the nine months ended September 30, 2026, total revenues were $7,309 million versus $6,968 million, net income from continuing operations was $1,814 million versus $927 million, and adjusted diluted earnings per share were $3.03 versus $2.73.

Segment Results

Burger King segment comparable sales rose 8.3%, including 8.4% in the United States. Segment total revenues were $396 million versus $387 million, and adjusted operating income increased to $136 million from $123 million. RBI attributed the revenue and adjusted operating income increases primarily to the comparable-sales gain, with revenue partially offset by the net impact of refranchisings. Under Burger King’s multi-year Reclaim the Flame plan, the company is investing up to $700 million through year-end 2028 in advertising and digital initiatives, which were completed in 2024, and in Royal Reset remodels, relocations, restaurant technology, kitchen equipment, and building enhancements. As of September 30, 2026, RBI had funded $198 million of the up to $550 million planned toward Royal Reset investments.

Tim Hortons comparable sales rose 1.5%, including 1.8% in Canada. Segment total revenues were $1,136 million versus $1,125 million, an increase the company said was driven by higher supply chain sales, primarily from increases in equipment sales to franchisees and commodity prices, and by increased system-wide sales, and which reflected an unfavorable foreign-exchange impact of $16 million. Adjusted operating income was $317 million versus $304 million, an increase RBI attributed primarily to tariff refunds and increased system-wide sales, with an unfavorable currency impact of $4 million.

Popeyes comparable sales fell 1.8%, including a 2.2% decline in the United States. Segment total revenues were $204 million versus $201 million, and adjusted operating income declined to $58 million from $63 million, a decrease the company attributed primarily to the comparable-sales decline and higher segment general and administrative expenses, the latter driven by higher compensation-related expenses, partially offset by higher company restaurant sales.

Firehouse Subs system-wide sales grew 8.3% with net restaurant growth of 7.8%. Segment total revenues were $65 million versus $60 million, and adjusted operating income was $16 million versus $14 million; RBI said both increases were primarily driven by the increase in restaurant count.

International segment system-wide sales grew 9.0% and comparable sales rose 3.9%. Segment total revenues were $289 million versus $268 million, and adjusted operating income was $205 million versus $189 million. The company attributed the revenue increase primarily to higher royalty revenues from Burger King and Popeyes restaurants resulting from increased system-wide sales, along with the resumption of royalty revenues from Burger King China, and said the adjusted operating income increase was driven by revenue growth, partially offset by higher segment general and administrative expenses from higher compensation-related expenses.

Restaurant Holdings, which includes Burger King restaurants acquired in the Carrols acquisition plus Popeyes China and Firehouse Subs Brazil restaurants, reported total revenues of $487 million versus $459 million, while adjusted operating income fell to $5 million from $10 million, a decrease RBI attributed primarily to higher company restaurant expenses and segment general and administrative expenses. The company said it intends to refranchise the vast majority of the Carrols Burger King restaurants, find new investors for Popeyes China and Firehouse Subs Brazil, and then sunset the segment.

On January 30, 2026, RBI established a Burger King China joint venture with CPE Alder Investment Limited, a fund managed by CPE, which invested $350 million of primary capital into the venture. RBI deconsolidated the business and now accounts for its remaining 17% equity interest under the equity method of accounting, recognizing franchise revenue, primarily royalties, in its International segment.

Capital Returns, Debt, and 2026 Guidance

The board of directors declared a fourth-quarter 2026 dividend of $0.65 per common share and partnership exchangeable unit of RBI LP, payable on January 5, 2027, to shareholders and unitholders of record at the close of business on December 22, 2026.

During the third quarter, RBI repurchased 817,041 of its common shares for $61 million and 2,784,549 Class B exchangeable limited partnership units for $214 million, excluding excise taxes; of those repurchases, 28,010 common shares had not yet settled as of September 30, 2026. As of that date, $768 million remained under the share repurchase authorization of up to $1,000 million that the board approved on August 6, 2025, covering September 15, 2025 through September 30, 2027. Between September 30, 2026 and October 23, 2026, RBI repurchased a further 235,276 common shares for $17 million, leaving $751 million remaining under the authorization as of October 23, 2026. RBI said it has returned $1.3 billion of capital to shareholders year to date through dividends and share repurchases.

Total debt was $13,588 million and net debt was $12,614 million as of September 30, 2026, with cash and cash equivalents of $974 million.

For full-year 2026, RBI said it continues to expect segment general and administrative expenses excluding Restaurant Holdings of between $600 million and $620 million, Restaurant Holdings adjusted operating income of approximately $10 million to $20 million, adjusted interest expense, net, of between $500 million and $520 million, and total capital expenditures and cash inducements of around $400 million. The company also said it remains on track for 8% organic adjusted operating income growth in 2026. RBI reiterated its long-term algorithm of 3%+ comparable sales and 8%+ organic adjusted operating income growth on average from 2024 to 2028, and said it continues to expect to reach 5%+ net restaurant growth toward the end of the algorithm period.

RBI scheduled an investor conference call and webcast for 8:30 a.m. Eastern Time on October 29, 2026, to review the third-quarter results.