Restaurant Brands International (QSR) DIvidends Date & History

Key Takeaways

• Current dividend yield of 3.25% on an annual payout of $2.60 per share, paid quarterly at $0.65.
• 11 consecutive years of dividend increases, with recent 4.8% hike to $0.65 per share.
• Higher yield than peers like MCD (2.5%), YUM (1.9%), and DPZ (2.3%).
• Payout ratio of approximately 107%, elevated but covered by free cash flow (FCF, cash generated after capital expenditures).
• Strong FCF generation supports dividend sustainability despite high payout on earnings.
• Attractive for income-focused investors in the quick-service restaurant sector.

Dividend Overview

Restaurant Brands International Inc. (QSR), the parent company of Burger King, Tim Hortons, Popeyes, and Firehouse Subs, maintains a consistent quarterly dividend policy. The company currently pays $0.65 per share, equating to an annual dividend of $2.60 and a yield of 3.25% as of May 2026. The most recent ex-dividend date was March 19, 2026, with payment on April 2, 2026. QSR is positioned as a higher-yield dividend stock rather than a rapid growth contender, offering reliable income from its global franchise model. With a history of steady payments since 2015, it appeals to investors seeking above-average yields in the consumer discretionary sector, though growth remains modest at around 5% annually over five years.

Dividend History and Growth

Restaurant Brands International initiated its dividend post its 2014 spin-off and has since delivered quarterly payments without interruption. The company boasts an 11-year streak of consecutive annual dividend increases, reflecting commitment to shareholders. Recent growth includes a 4.8% raise in February 2026 to $0.65 per share from $0.62. Over the past five years, the dividend compound annual growth rate (CAGR) stands at approximately 5.4%, with a three-year CAGR of 6%. This consistent progression aligns with the company's strategy of balancing reinvestment in brand expansion with shareholder returns, supported by stable franchise royalties and fees.

Dividend Sustainability and Payout Ratio

QSR's trailing payout ratio hovers around 107%, meaning dividends exceed reported earnings per share (EPS). This elevated figure raises caution, as it leaves limited buffer if earnings falter. However, sustainability is bolstered by robust free cash flow coverage, with an FCF payout ratio of about 88%. In recent periods, annual FCF has exceeded $1.2 billion, comfortably covering the roughly $1.2 billion in total dividends. Manageable debt levels and high-margin franchise operations further enhance stability, positioning the dividend as maintainable barring major economic disruptions in the restaurant industry.

Dividend Compared to Industry Peers

In the quick-service restaurant sector, QSR's 3.25% yield outpaces key competitors. McDonald's (MCD) offers around 2.5% with its legendary 49-year growth streak, emphasizing ultra-stability. Yum! Brands (YUM), parent of KFC and Taco Bell, yields about 1.9%, prioritizing growth. Domino's Pizza (DPZ) provides 2.3%, similar to peers but with higher growth potential. QSR's higher yield makes it stand out for income seekers, though peers generally exhibit lower payout ratios and longer histories.

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Is This Stock Attractive for Dividend Investors?

Restaurant Brands International (QSR) suits income-oriented dividend investors comfortable with a higher yield and moderate growth profile. Those prioritizing current income over aggressive dividend appreciation may find the 3.25% yield compelling, especially versus lower-yielding mega-peers like MCD. Long-term holders valuing franchise resilience and FCF-backed payouts could benefit from the 11-year growth streak. However, conservative investors wary of payout ratios above 100% might prefer stabler alternatives. The stock fits portfolios seeking sector exposure with elevated income, balanced against cyclical consumer risks and competition. Overall, it appeals to yield-focused strategies tolerant of moderate leverage.

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