Restaurant Brands International (QSR) Q1 2026 earnings

Restaurant Brands International On Wednesday, Burger King reported better-than-expected quarterly earnings and revenue thanks to strong international growth in another quarter and a successful turnaround in the U.S.

However, there are some potential challenges ahead for the company; such as high beef prices, which will remain so for longer than Restaurant Brands initially anticipated, and weakening consumer sentiment as a result of the US-Israeli war with Iran.

The company’s shares fell nearly 5% in morning trading.

Here are the company’s reported results compared to Wall Street expectations, based on a survey of analysts by LSEG:

• Earnings per share: 86 cents adjusted, 82 cents expected
• Revenues: 2.26 billion dollars, while the expectation was 2.24 billion dollars

Restaurant Brands reported first-quarter net income attributable to common shareholders was $338 million, or 97 cents per share, compared to $159 million, or 49 cents per share, a year earlier.

Excluding one-time expenses and other items, the restaurant company earned 86 cents per share.

Revenues It increased by 7% to $2.26 billion.

Restaurant Brands’ same-store sales rose 3.2% in the quarter, driven by strong growth at Burger King’s U.S. locations and the company’s international restaurants.

Outside the U.S. and Canada, Restaurant Brands’ international business saw a 5.7% increase in same-store sales; This was above the 5.1% growth forecast by Wall Street analysts surveyed by StreetAccount. Same-store sales at international Burger King restaurants, which represent the majority of the segment, increased by 5.4%.

Burger King reported same-store sales growth of 5.8%, above StreetAccount’s estimates for a 3.5% increase. The chain’s U.S. business is renovating its restaurants, improving its Whopper toppings and offering consistent value products.

“There’s remarkable success in the industry right now, including Burger King, and they’re doing huge numbers,” Restaurant Brands president Patrick Doyle said on the call. “There are other sectors of the industry where things are clearly deteriorating and losing market share.”

Tim Hortons’ same-store sales rose 1.6%, below StreetAccount’s forecast for 2.5% growth. Restaurant Brands CEO Josh Kobza said January snowstorms and consumers’ general economic concerns put pressure on the Canadian coffee chain’s sales, but the chain is outperforming the broader coffee category in Canada.

Popeyes fell behind the portfolio again this quarter. The fried chicken chain reported a 6.5% drop in same-store sales; That’s a steeper decline than Wall Street’s forecast for a 1.5% decline and the largest quarterly decline in years.

Facing stiffer competition and more value-conscious consumers, Popeyes is trying to revive sales by focusing on its operations and core menu items. Speaking to analysts on a conference call, Kobza said the chain’s same-store sales should start growing again in the second half of the year.