Restaurant Brands International Inc. Reports Third Quarter 2025 Results

Executive Summary

• RBI reported strong Q3 2025 performance: system‑wide sales up 6.9% YoY (12.1% internationally) and comparable sales accelerated to 4.0%.
• Adjusted Operating Income rose 7.6% YoY to $702 M, driven by higher revenues and lower G&A expenses; Adjusted EBITDA increased 5.0% to $794 M.
• Net income from continuing operations grew 23.2% YoY to $440 M (diluted EPS $0.96). The board declared a $0.62 per share dividend for Q4 2025.

Key Details

• System‑wide Sales: $12,282 M (Q3) vs. $11,433 M (Q3 2024); YoY growth 6.9% (constant currency).
• Comparable Sales: +4.0% YoY (overall); brand breakdown – Tim Hortons +4.2%, Burger King +3.1%, Popeyes ‑2.4%, Firehouse +2.6%.
• Net Restaurant Growth: 2.8% YoY (down from 3.8% prior year). Total restaurants at period end: 32,423 (up 898).
• Revenue Highlights (US$ M):
• Total Revenues – $2,449 vs. $2,291 last year (+6.9%).
• Supply‑Chain Sales – $769 (+10.0%).
• Franchise & Property Revenues – $778 (+5.8%).
• Advertising Revenues – $314 (+8.3%).
• Operating Performance:
• Income from Operations – $663 M vs. $577 M (+14.8%).
• Adjusted Operating Income (AOI) – $702 M vs. $652 M (+7.6%).
• Adjusted EBITDA – $794 M vs. $748 M (+5.0%).
• Profitability: Net income from continuing ops $440 M (+23.2%); diluted EPS $0.96 vs. $0.79 last year.
• Leverage: Net leverage improved to 4.4× (down from 4.8×). Net debt $12,692 M; cash & equivalents $1,206 M.
• Capital Allocation: Total Capex & cash inducements for Q3 2025 = $110 M (property additions $61 M, tenant inducements $12 M, other inducements $9 M).
• Dividend: Board declared $0.62 per common share / RBI LP unit payable 6 Jan 2026 to shareholders of record 23 Dec 2025.
• Guidance Update (2025):
• Segment G&A (ex‑RH) $600‑$620 M; RH G&A ≈ $100 M.
• Adjusted interest expense net ≈ $520 M.
• Total capex & cash inducements ≈ $400 M for the year.
• Strategic Updates:
• Completed Carrols and Popeyes China acquisitions (May‑June 2024); created new “Restaurant Holdings” segment.
• BK China acquired Feb 14 2025; classified as held‑for‑sale, excluded from INTL results.
• Updated AOI presentation to exclude franchise agreement & reacquired franchise right amortization – no impact on reported AOI.
• Investor Call: Conference call scheduled for Oct 30 2025, 8:30 a.m. ET (dial‑in details provided).

Notable Quotes

“Our teams delivered a strong quarter, driven by momentum from Tim Hortons and our International business… we remain firmly on track to deliver at least 8% organic Adjusted Operating Income growth this year.” – Josh Kobza, CEO, RBI.