Restaurant Brands International Inc. Reports Fourth Quarter and Full Year 2025 Results

Executive Summary

• RBI reported Q4 system‑wide sales up 5.8% YoY and full‑year growth of 5.3%, with comparable sales increasing 3.1% in Q4 and 2.4% for the year.
• Adjusted Operating Income (AOI) rose 16.5% YoY to $2.584 B for FY 2025; Adjusted EBITDA increased 6.7% to $2.970 B.
• Net leverage improved to 4.2×, and the company returned roughly $1.1 B of capital to shareholders while maintaining a $0.65 per share dividend (Q1 2026) and targeting a $2.60 annual dividend.

Key Details

• System‑wide sales: $12,131 M Q4 / $46,762 M FY (vs. $11,279 M / $44,476 M 2024).
• Comparable sales growth: 3.1% Q4, 2.4% FY (driven by INTL +6.1%, TH Canada +2.8%, BK US +2.6%).
• Net restaurant growth: 2.9% YoY (both Q4 and FY).
• Total revenues: $2,466 M Q4, $9,434 M FY (up 7.4% FY, driven by supply‑chain sales, CPG net sales, equipment sales).
• Adjusted Operating Income (AOI): $674 M Q4, $2,584 M FY (+16.5% YoY).
• Organic AOI growth: 15.6% Q4, 8.3% FY.
• Adjusted EBITDA: $772 M Q4, $2,970 M FY (+12.2% Q4, +6.7% FY).
• Net income (continuing): $274 M Q4, $1,201 M FY (down 24.1% Q4, 16.9% FY due to discontinued operations and FX impacts).
• Diluted EPS (adjusted): $0.96 Q4, $3.69 FY.
• Net leverage: 4.2× (down from 4.6× in 2024).
• Capital allocation: $1.108 B paid as cash dividends/partnership unit distributions; $400 M targeted capex & cash inducements for 2026.
• Dividend: $0.65 per share declared for Q1 2026; annual target $2.60 per share/unit.
• Guidance 2026:
• Segment G&A (ex‑RH) $600–$620 M, RH G&A ≈ $100 M.
• Adjusted net interest expense $500–$520 M.
• Total capex & cash inducements ≈ $400 M.
• Strategic updates:
• Completed BK China JV (CPE owns ~83%); recognized $114 M non‑cash charge in 2025.
• Continued “Reclaim the Flame” plan – $176 M invested to date of $550 M planned for Royal Reset through 2028.
• Acquisitions: Carrols (May 2024) and PLK China (June 2024) integrated into new Restaurant Holdings segment; BK China now held‑for‑sale (discontinued ops).

Notable Quotes

• Josh Kobza, CEO: “Our performance in 2025 reflects the progress we’ve made strengthening our brands… delivered a third consecutive year of roughly 8% organic Adjusted Operating Income growth.”