Restaurant Brands International (QSR) Q3 2025 earnings

Restaurant Brands International on thursday reported Quarterly earnings and revenue beat analysts’ expectations, boosted by growth at international restaurants and Tim Hortons.

Together, these two divisions account for about 70% of the company’s earnings, according to CEO Josh Kobza.

Like many restaurants, the company has seen low- and middle-income consumers spending less on food in recent quarters. Restaurant customers didn’t change their behavior in the third quarter, but executives credited Burger King’s U.S. restaurants in particular with sticking to their strategy for the company’s strong quarterly performance and avoiding so-called value wars.

“If you look at our results, we’re in good shape despite some trends,” Kobza told CNBC.

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

• Earnings per share: Adjusted $1.03, expected $1
• Revenues: 2.45 billion dollars, while the expectation was 2.4 billion dollars

Restaurant Brands reported net income attributable to shareholders in the third quarter was $315 million, or 96 cents per share, compared to $252 million, or 79 cents per share, a year earlier.

Excluding transaction costs and other items, the company earned $1.03 per share.

Net sales increased 6.9% to $2.45 billion. The company’s same-store sales, which track metrics only at restaurants open at least a year, rose 4%.

Restaurant Brands’ international segment was the star of the quarter, reporting a 6.5% increase in same-store sales. This was above the StreetAccount consensus estimate of 4.4%. The company’s restaurants in Western Europe, China and Japan are fueling the segment’s same-store sales growth, Kobza told CNBC.

Tim Hortons reported 4.2% growth in same-store sales. The Canadian coffee chain is leaning more into food offerings to increase sales and traffic at its restaurants. Executives also said the improved iced latte boosted sales of cold beverages, which rose 10% in the quarter.

Burger King’s same-store sales increased 3.1%; This shows that the chain’s comeback strategy in the US is working. To stimulate domestic sales, Burger King has focused on restaurant renovations and marketing around core menu items like the Whopper. According to Burger King USA President Tom Curtis, renovated restaurants also generate profits for franchisees, which increases the profitability of operators.

Looking ahead, the burger chain plans to focus on “product upgrades,” Curtis said.

“I think that’s important in an environment where you hear a lot about degrowth and you hear a lot about cost-cutting. So, we’re going to zig while others are zig-zagging,” he added.

Popeyes was the only Restaurant Brands division to report same-store sales declines. The chicken chain’s same-store sales decreased by 2.4%. In recent quarters, it has struggled to keep up with its rivals, especially when it comes to competing for value-oriented customers.

“I think what we want to focus on in the coming quarters is making even more progress on the operational side in terms of the consistency of the guest experience we deliver on a store-by-store basis,” Kobza said.

After spending much of last year touting innovations like bone-in chicken wings, Popeyes will focus more on core menu items going forward, executives said.