Restaurant Brands International Q2 Earnings Call Highlights

Restaurant Brands International delivered solid Q2 growth: Systemwide comparable sales rose 3.8%, adjusted EPS increased 12.9% to $1.07, and organic adjusted operating income grew 6.7%. Burger King U.S. led the performance with 8.5% same-store sales growth. International operations provided additional momentum, with 5.5% comparable-sales growth and 5.1% net restaurant growth. Burger King China again posted double-digit comparable-sales growth, supporting the company’s goal of reaching 5% annual net restaurant growth by 2028. Results were mixed across other major brands: Tim Hortons Canada was nearly flat at 0.1% comparable-sales growth, while Popeyes U.S. same-store sales fell 5.2%. Management is relying on new promotions, operational improvements and value offerings to restore Popeyes to positive comparable sales in the second half of 2026.

Restaurant Brands International reported second-quarter results that showed continued sales and earnings growth, led by Burger King U.S. and its international operations, while Tim Hortons Canada posted nearly flat comparable sales and Popeyes remained under pressure. Chief Executive Officer Josh Kobza said the company generated 3.8% systemwide comparable-sales growth and 2.9% net restaurant growth in the quarter ended June 30. Those results drove 6.4% systemwide sales growth, 6.7% organic adjusted operating income growth and 12.9% adjusted earnings-per-share growth. Adjusted EPS rose to $1.07 from $0.94 a year earlier. Kobza said the company has exceeded its long-term 3% same-store sales growth algorithm for three consecutive quarters and returned $435 million of capital to shareholders during the quarter.

Burger King was the company’s strongest major domestic contributor in the quarter. The brand posted 8.6% comparable-sales growth and 8.2% systemwide sales growth. U.S. same-store sales increased 8.5%, outperforming the burger quick-service restaurant industry by more than nine percentage points, according to Kobza. The performance followed the rollout of Burger King’s Whopper and brand-elevation campaigns, part of the company’s multiyear “Reclaim the Flame” turnaround strategy. Kobza said the company has expanded its focus to service through its “Your Way Champion” restaurant leadership role and a Whopper Guarantee that promises a replacement Whopper and another sandwich if a guest’s order does not meet standards. The company said average unit volumes for its Whopper platform have grown more than 20% since the elevation campaign began. Burger King also reported that Kids Meal average unit volumes exceeded 28 per day in the second quarter, up nearly 50% from 2022, following a Mandalorian-themed promotion. Executive Chairman J. Patrick Doyle said the brand’s gains reflect cumulative work on operations, food, marketing, restaurant image and franchisee quality rather than a single promotion. He said the company still sees opportunities to modernize additional restaurants, improve operations and further elevate menu offerings. On refranchising, Chief Financial Officer Sami Siddiqui said Restaurant Brands began selling acquired Carrols restaurants to franchisees earlier than originally expected. While second-quarter activity was slower than anticipated, he said the pipeline of prospective buyers has more than doubled since the company’s investor day. Restaurant Brands expects to refranchise a few hundred restaurants in 2026 and the remainder in 2027, with the goal of winding down the R...