Restaurant Brands International Inc. Reports Second Quarter 2025 Results

Executive Summary

• Restaurant Brands International (RBI) reported financial results for the second quarter ended June 30, 2025, showing consolidated system-wide sales growth of 5.3% year-over-year, with international sales accelerating to 9.8%.
• The company reported GAAP diluted earnings per share of $0.58 and Adjusted Diluted EPS of $0.94 for the quarter. Consolidated Total Revenues reached $2,410 million, while Adjusted Operating Income (AOI) grew 5.7% to $668 million.
• RBI reaffirmed its 2025 guidance for 8%+ organic Adjusted Operating Income growth and announced a new $1 billion share repurchase authorization effective September 15, 2025, alongside a quarterly dividend of $0.62 per share.

Key Details

• Consolidated Financials (Q2 2025):
  • Total Revenues: $2,410 million (vs. $2,080 million in Q2 2024).
  • Income from Operations: $483 million (vs. $663 million in Q2 2024).
  • Net Income from Continuing Operations: $264 million (vs. $399 million in Q2 2024).
  • Diluted EPS from Continuing Operations: $0.58 (vs. $0.88 in Q2 2024).
  • Adjusted Operating Income (AOI): $668 million (vs. $632 million in Q2 2024).
  • Organic AOI Growth: 5.7%.
  • Adjusted EBITDA: $762 million (vs. $721 million in Q2 2024).
  • Adjusted Diluted EPS: $0.94 (vs. $0.86 in Q2 2024).
  • Net Leverage: 4.6x (vs. 5.0x in Q2 2024).
• Operational Highlights:
  • System-Wide Sales Growth: 5.3% (vs. 5.0% in Q2 2024).
  • Comparable Sales: 2.4% (vs. 1.9% in Q2 2024).
  • Net Restaurant Growth: 2.9%.
  • System Restaurant Count: 32,229 at period end.
• Segment Performance (Q2 2025):
  • Tim Hortons (TH): System-wide sales growth 3.9%; Comparable sales 3.4%; AOI $278 million.
  • Burger King (BK): System-wide sales growth 1.0%; Comparable sales 1.3%; AOI $121 million.
  • Popeyes (PLK): System-wide sales growth 1.6%; Comparable sales -1.4%; AOI $66 million.
  • Firehouse Subs (FHS): System-wide sales growth 6.3%; Comparable sales -0.8%; AOI $15 million.
  • International (INTL): System-wide sales growth 9.8%; Comparable sales 4.2%; AOI $172 million.
  • Restaurant Holdings (RH): Total Revenues $469 million; AOI $16 million.
• Strategic Updates & M&A:
  • BK China: Acquired substantially all remaining equity interests on February 14, 2025; classified as held for sale and reported as discontinued operations as management seeks a new controlling shareholder.
  • Reclaim the Flame: Burger King is executing a multi-year plan investing up to $700 million through year-end 2028. As of June 30, 2025, $152 million of the $550 million planned for "Royal Reset" investments has been funded.
• Capital Allocation & Guidance:
  • Dividend: Board declared a dividend of $0.62 per common share and partnership exchangeable unit for Q3 2025, payable October 7, 2025.
  • Share Repurchase: Approved a new authorization to repurchase up to $1 billion of common shares from September 15, 2025, until September 30, 2027.
  • 2025 Guidance:
    • Segment G&A (excluding RH): $600–$620 million.
    • RH Segment G&A: ~$100 million.
    • Total Capex and Cash Inducements: $400–$450 million.
    • Adjusted Interest Expense: ~$520 million.
  • Long-Term Algorithm (2024-2028): Expect 3%+ Comparable Sales, 8%+ organic AOI growth, and 5%+ Net Restaurant Growth.

Notable Quotes

• "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." — Josh Kobza, Chief Executive Officer