Restaurant Brands International reported fourth-quarter results for the period ended Dec. 31 that beat Wall Street expectations, driven largely by stronger-than-anticipated international demand at Burger King. Adjusted earnings per share were $0.96 versus $0.95 expected, and revenue came in at $2.47 billion versus $2.41 billion forecast. The company posted net income attributable to shareholders of $113 million, or $0.34 per share, down from $259 million, or $0.79, a year earlier. Restaurant Brands said same-store sales rose 3.1% overall, with international markets outside the U.S. and Canada up 6.1%.
Key Takeaways
- Adjusted EPS: $0.96, beating the $0.95 consensus from LSEG/StreetAccount.
- Revenue: $2.47 billion, up 7.4% year-over-year; organic revenue (ex-currency and refranchising) rose 6.5%.
- Net income attributable to shareholders: $113 million, or $0.34 per share, versus $259 million ($0.79) a year prior.
- Company-wide same-store sales increased 3.1%; outside the U.S. and Canada, same-store sales climbed 6.1%.
- International Burger King restaurants recorded same-store sales growth of 5.8%, above StreetAccount’s 3.7% projection.
- Tim Hortons same-store sales grew 2.9% (Wall Street projected 3.8%) and represented 46% of quarterly revenue.
- Burger King same-store sales rose 2.7%, above the 2.4% StreetAccount estimate.
- Popeyes same-store sales declined 4.8%, worse than the 2.4% drop analysts expected; management has announced leadership and marketing changes to address the slump.
Background
Restaurant Brands International (RBI) is the parent of Burger King, Tim Hortons and Popeyes, operating through a mix of company-owned and franchised restaurants. Over the past decade the group has leaned into international expansion and refranchising to shift capital expenditure away from company-operated restaurants and toward franchise-led growth. That strategy has made the performance of international markets—particularly in large, fast-growing economies—a central driver of top-line results and investor expectations.
In November RBI announced a plan to form a joint venture for Burger King China to accelerate expansion in the country; that transaction closed in late January with CPE, a Chinese alternative asset manager, taking roughly an 83% stake in Burger King China while RBI retained about 17% and a board seat. The deal rebalances RBI’s exposure to China from full ownership toward a minority, capital-light stake while preserving strategic influence.
Main Event
The quarter’s headline beat was modest on EPS but notable on revenue and international same-store-sales. Adjusted EPS of $0.96 narrowly exceeded the $0.95 consensus, and revenue of $2.47 billion outpaced the $2.41 billion forecast. Management said net sales grew 7.4% year-over-year, and after stripping out currency swings and expected refranchising sales, organic revenue rose 6.5%.
Same-store sales were driven by international markets. Outside the U.S. and Canada, same-store sales increased 6.1% — a performance concentrated in the Burger King international footprint, which posted a 5.8% gain. That result comfortably outperformed StreetAccount’s 3.7% estimate and was the primary reason the quarter exceeded expectations.
Tim Hortons produced a 2.9% same-store-sales increase but missed the 3.8% projection, while Burger King’s overall same-store sales rose 2.7% versus an expected 2.4%. Popeyes underperformed, with same-store sales down 4.8% compared with a 2.4% decline forecast. RBI has moved to address Popeyes’ weakness by installing Peter Perdue to lead U.S. and Canadian operations and naming Matt Rubin as Popeyes’ chief marketing officer.
RBI reiterated plans to present additional growth initiatives at its investor day in Miami on Feb. 26, flagging continued emphasis on international expansion, refranchising, and targeted marketing investments to drive same-store sales recovery at underperforming brands.
Analysis & Implications
The results underscore a growing split between RBI’s brands: Burger King’s international momentum is offsetting softer trends at Popeyes and the modest miss at Tim Hortons. For investors, the quarter highlights the benefits of a franchise-heavy model in volatile markets; franchising and JV arrangements reduce capital intensity and shift franchisee-driven sales upside into company revenue through royalties and fees.
The Burger King China joint venture materially changes RBI’s exposure in its second-largest geography. By retaining a minority stake and a board seat, RBI preserves upside to system growth while transferring most operating and capital commitments to local partners. Financially, that reduces near-term revenue tied to company-owned restaurants but can improve margins and cash flow over time if the franchise model scales.
Popeyes’ sharper-than-expected decline is a credit-risk and brand-health issue. Management’s leadership changes and marketing hires are standard first responses; success will depend on product, pricing and promotion plans that reconnect the chain with its customer base. If Popeyes stabilizes, the company can capture margin expansion by accelerating refranchising and reducing corporate exposure to underperforming units.
Currency and refranchising adjustments also shaped headline numbers. The 6.5% organic revenue gain excludes currency swings and refranchised-store sales, meaning reported figures are influenced by both operational performance and portfolio moves. Analysts and investors will be watching franchise margins, unit economics in China, and the timeline RBI gives on Popeyes recovery at the upcoming investor day.
Comparison & Data
| Metric | Q4 (period ended Dec. 31) | StreetAccount/LSEG Estimate | Prior Year |
|---|---|---|---|
| Adjusted EPS | $0.96 | $0.95 | $0.79 (adjusted) |
| Revenue | $2.47B | $2.41B | — |
| Net income (attributable) | $113M (34¢) | — | $259M (79¢) |
| Company same-store sales | +3.1% | — | — |
| International (ex US/Canada) SSS | +6.1% | 3.7% (BK international est.) | — |
The table shows the core beats in EPS and revenue and highlights the divergence between international Burger King strength and Popeyes’ weakness. Investors will parse organic revenue and refranchising disclosures to estimate sustainable margin trends.
Reactions & Quotes
“We saw solid momentum internationally, particularly within Burger King’s global markets,”
Company statement, Restaurant Brands International
RBI framed the quarter as one where global franchise strength offset headwinds at select banners. The company pointed to the China JV and refranchising as levers to redeploy capital.
“The outperformance overseas underscores how international markets can drive upside when domestic growth is tepid,”
Industry analyst (data provider)
Analysts noted the margin and cash-flow benefits of the franchise-first approach and flagged Popeyes as the primary execution risk in the near term.
“Popeyes needs focused menu and marketing initiatives to reclaim growth — leadership changes are necessary but not sufficient,”
Restaurant sector consultant
Consultants and investors emphasized that management’s execution on product and marketing will determine whether Popeyes’ decline reverses.
Unconfirmed
- Long-term timing and financial lift from the Burger King China joint venture remain subject to future disclosures and operational execution.
- The exact timeline and measurable impact of Popeyes’ turnaround plan have not been publicly detailed beyond leadership and marketing appointments.
- How much refranchising will contribute to margin improvement in the next two quarters is not yet disclosed.
Bottom Line
Restaurant Brands’ Q4 beat was driven primarily by international momentum at Burger King, a dynamic that offset softer results at Tim Hortons and a steep downturn at Popeyes. The numbers validate RBI’s strategy of growing through franchising and strategic local partnerships, notably the minority-stake joint venture in China that transfers much of the operating burden to a local partner while keeping upside exposure.
Investors should watch the Feb. 26 investor day for concrete timelines and metrics on Popeyes’ recovery, refranchising targets and the commercial plans for Burger King China. Absent clear execution milestones for Popeyes, the company’s valuation and margin trajectory will remain tied to international franchise performance and refranchising progress.