Restaurant Brands International (QSR) Earnings Date & Reports
Restaurant Brands generates about $47 billion in system sales across more than 33,000 restaurants in over 120 markets, making it one of the largest restaurant companies globally... Show more
QSR is expected to report earnings to rise 20.93% to $1.04 per share on August 06
Restaurant Brands International (QSR) Q1 2026 Earnings Recap: Beats Estimates on Burger King Surge
Key Takeaways
- Restaurant Brands International reported Q1 2026 total revenues of $2.264 billion, up 7.4% year-over-year and beating consensus estimates of $2.24 billion.
- Adjusted diluted EPS came in at $0.86, surpassing expectations of $0.82-$0.83 and up 14.6% from $0.75 a year ago.
- System-wide sales grew 6.2% to $11.51 billion, driven by 3.2% comparable sales growth, with Burger King U.S. at +5.8% and International at +5.7%.
- Organic adjusted operating income (AOI) rose 10.7%, with the company reaffirming guidance for 8%+ organic AOI growth in 2026.
- Popeyes comparable sales fell 6.5%, steeper than expected, offsetting gains elsewhere; shares dropped about 5-6% post-earnings.
- Resumed $500 million share repurchase program in 2026, signaling confidence in capital returns.
Earnings Context and Why It Matters
Restaurant Brands International (QSR), the parent of Burger King, Tim Hortons, Popeyes, and Firehouse Subs, released first quarter 2026 results for the period ended March 31, 2026, on May 6. This report is pivotal amid ongoing quick-service restaurant industry challenges, including shifting consumer traffic and value wars. QSR's franchise-heavy model (over 33,000 locations globally) amplifies the importance of system-wide sales and comparable sales growth, key indicators of brand strength and franchisee health. Strong U.S. Burger King momentum under the "Reclaim the Flame" initiative and international expansion provide tailwinds, while Popeyes' weakness highlights execution risks. For investors, these results signal progress toward long-term targets of 3%+ comps and 5%+ net unit growth, influencing valuation in a sector trading at discounts to historical multiples.
Restaurant Brands International delivered robust Q1 2026 results, exceeding Wall Street expectations across key metrics. Total revenues reached $2.264 billion, a 7.4% increase from $2.109 billion in Q1 2025 and above the $2.24 billion consensus. Adjusted diluted EPS of $0.86 topped estimates of $0.82-$0.83, reflecting 14.6% nominal growth and 11.0% organic. Diluted EPS from continuing operations was $0.97, up from $0.49 year-over-year.
System-wide sales climbed 6.2% to $11.51 billion, fueled by 3.2% comparable sales (comps) growth versus 0.1% last year. Adjusted operating income hit $610 million (up 13.0%), with organic AOI growth of 10.7%. By brand: Burger King comps +5.8% (U.S. +5.8%), system sales +5.5%; Tim Hortons +1.6%; International +5.7% (system sales +11.1%); Firehouse Subs -0.5%; Popeyes -6.5% (system sales -3.9%). Net restaurant growth was 2.6%, with 32,985 units.
Guidance remains intact: 8%+ organic AOI growth for 2026, with segment G&A (general and administrative expenses) at $600-620 million (excluding Restaurant Holdings), capex/inducements ~$400 million, and $500 million in share repurchases planned.
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Market Reaction and Investor Sentiment
Despite beating earnings and revenue estimates, QSR shares fell 5-6% in post-earnings trading on May 6, 2026, trading around $76.57 after pre-market dips of ~4.8%. Investors appeared disappointed by Popeyes' steeper-than-expected -6.5% comps decline (versus -1.5% forecast), overshadowing Burger King U.S. strength (+5.8% vs. +3.5% expected) and international outperformance. Sentiment remains cautiously optimistic, with analysts like TD Cowen maintaining a Hold but lifting targets (e.g., $76 to $79), citing progress on strategic initiatives. Over the last four quarters, QSR has beaten EPS estimates three times.
Forward Outlook and Key Factors to Monitor
Restaurant Brands International reaffirmed its 2026 outlook, targeting 8%+ organic AOI growth amid $500 million in planned share repurchases and a growing dividend. Management highlighted confidence in converting topline momentum into double-digit earnings expansion, supported by Burger King's "Reclaim the Flame" investments ($700 million through 2028) and international scaling (29% of operating profit).
Key brand-specific watches include Popeyes' turnaround, with CEO Josh Kobza expecting positive comps by H2 2026 via improved execution, core menu focus, and value propositions—following franchisee alignment in April roadshows. Tim Hortons' 20th straight positive comp quarter in Canada signals stability, while Firehouse Subs' 8.1% unit growth and <4-year paybacks bolster development.
Broader factors: net leverage improved to 4.2x; Carrols refranchising progress; potential PLK China/FHS Brazil partnerships to phase out Restaurant Holdings AOI (~$10-20 million). Industry dynamics like U.S. traffic recovery and FX headwinds warrant monitoring, alongside Q2 results on August 6. Long-term algorithm (2024-2028) eyes 3%+ comps, 5%+ net growth.
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