Restaurant Brands International (NYSE:QSR) executives used the company’s fourth-quarter 2025 earnings call to highlight steady system-wide sales growth, a return to net unit growth at Tim Hortons Canada, improving trends at Burger King U.S., and strong momentum across the international segment, while acknowledging softer results at Popeyes U.S. and ongoing commodity pressure from elevated beef prices.
2025 results and management’s focus
CEO Josh Kobza said 2025 results reflected “staying focused on the basics” and continuing long-term investments across the portfolio. For the full year, the company reported comparable sales growth of 2.4%, net restaurant growth of 2.9%, and system-wide sales growth of 5.3%. Kobza said those top-line trends translated into 8.3% organic adjusted operating income (AOI) growth and nominal adjusted EPS growth of over 10%.
Executive Chairman Patrick Doyle described 2025 as a difficult operating environment, citing pressured consumers, elevated costs, and macro and geopolitical uncertainty. He emphasized franchisee profitability as the company’s most important metric, noting resilience at Tim Hortons and pressure at Burger King and Popeyes tied largely to commodity costs and sales performance, respectively.
Tim Hortons: steady comps, cold beverage strength, and loyalty expansion
Tim Hortons, which management said represents roughly 42% of operating profit, posted comparable sales growth of 2.8% in Canada in the fourth quarter, which Kobza said outperformed the broader Canadian QSR industry by nearly two points. Kobza pointed to gains across key categories:
- Breakfast food sales grew 3.5%, supported by innovations such as “100% Canadian freshly cracked scrambled eggs” and strength in core items like the Farmer’s Wrap.
- Baked goods grew 2%, driven by seasonal items including a Biscoff Boston Cream Donut and Croissant.
- Fourth-quarter beverage sales grew 3.2%, with cold beverages up 8.6% and reaching nearly 27% of total beverage sales, the highest fourth-quarter mix on record.
Kobza said digital ordering and payments reached all-time highs in the fourth quarter and kiosks expanded to more than 800 restaurants. On loyalty, management said about 33% of sales in 2025 came from loyalty members, with seven million active members. Siddiqui said active members spend more than 50% more after joining compared to pre-joining behavior and visit more often than non-members. Kobza also reiterated plans to launch a loyalty partnership with Canadian Tire later in 2026.
On development, Kobza said Tim Hortons returned to net restaurant growth in Canada for the first time since 2021, with growth focused on “suburban developments, capacity-constrained markets, and urban densification.” In the U.S., the brand posted its highest level of new restaurant openings in the past decade, with progress cited in existing markets and newer markets including Florida and Virginia.
Tim Hortons Canada franchisee profitability faced headwinds from tariffs and higher operating commodity costs, including coffee, but Kobza said average four-wall EBITDA remained “resilient” at approximately CAD 295,000.
International: double-digit system-wide sales growth and a new China partner
The international segment, which management said accounts for about 27% of operating profit, delivered comparable sales growth of 4.9% for the full year, including 6.1% in the fourth quarter. Net restaurant growth was 4.9%, driving nearly 11% system-wide sales growth for the year.
Kobza cited market-specific initiatives including value platforms in Brazil, beverage innovation in Australia, and marketing activations in France. He also highlighted performance in Japan, where Burger King delivered 22% same-store sales in 2025 on top of 19% in 2024, along with 84 net new restaurants.
A central theme of the call was Burger King China. Kobza said RBI temporarily took control of the business during 2025, built a local leadership team, improved marketing and operations, optimized the restaurant portfolio, and achieved three consecutive quarters of positive same-store sales. In the fourth quarter, Burger King China comparable sales grew 9.2%.
During the quarter, RBI announced a joint venture with CPE, described as an experienced Chinese investment firm. The transaction closed on January 30, and CPE injected $350 million of primary capital. Kobza said the partners share an ambition to roughly double Burger King China’s footprint to at least 2,500 restaurants by 2030.
Burger King U.S.: industry outperformance, value consistency, and remodel pacing
Burger King, representing roughly 18% of operating profit, posted U.S. comparable sales growth of 1.6% for the full year and 2.6% in the fourth quarter. Kobza said Burger King U.S. outperformed the burger QSR industry in nine of the last 12 quarters.
Marketing highlights included a December SpongeBob SquarePants activation featuring the “Krabby Whopper” with a square bun. Kobza said kids’ meals reached their highest incidence level in the last 10 years during the promotion and added that Burger King retained traffic after the promotion ended, with new SpongeBob guests returning in January.
Management also emphasized the role of its ongoing value platform, with $5 Duos and $7 Trios offered throughout the year. On operations, Kobza said the system continued its Royal Roundtables with restaurant managers, and noted that “A operators” outperformed system average profitability by nearly $50,000 in 2025.
On remodels, Burger King ended 2025 at 58% Modern Image, up from 51% in 2024. Kobza said the current cost environment is influencing the pace of remodel activity, and the company expects it will take longer than previously discussed to reach 85% Modern Image. He also said Carrols completed roughly 60 remodels in 2025, including 54 “Sizzles,” and that Carrols’ fourth-quarter comparable sales were impacted by weather in the Northeast.
Franchisee profitability at Burger King U.S. was about $185,000 in 2025, down from about $205,000 in 2024. Siddiqui attributed the decline primarily to commodity inflation, saying Burger King U.S. experienced about 7% commodity inflation in 2025 driven by beef, which increased over 20% for the year.
Popeyes and Firehouse: rebuilding at Popeyes U.S., continued growth at Firehouse
Popeyes reported comparable sales down 3.2% for the full year, while net restaurant growth of 1.6% resulted in system-wide sales growth of -0.7%. Kobza said franchisee profitability declined to roughly $235,000 and emphasized that Popeyes’ biggest opportunity is improving restaurant-level execution and re-engaging core guests.
In November, the company named Peter Perdue as president of Popeyes U.S. and Canada, with Kobza describing a mandate focused on improving operational consistency. He said the company increased its field operations team by about 75%, launched in-restaurant coaching visits, and planned Restaurant General Manager Experience Rallies across the U.S. in the spring. Kobza also said Popeyes would sharpen its core product focus, prioritizing items such as bone-in chicken, tenders, and the sandwich.
Firehouse Subs posted comparable sales growth of 1.1% for the year, including 2.1% in the fourth quarter, and net restaurant growth of 7.7%, driving system-wide sales growth of 8.6%. Kobza said the brand opened 104 net new restaurants across the U.S. and Canada and that franchisee profitability grew to over $100,000.
Looking ahead, management reiterated plans to provide additional forward-looking detail at its Investor Day on February 26. Siddiqui said the company is targeting a fourth consecutive year of “on-algorithm” 8% AOI growth in 2026 and expects to increase its dividend target by roughly 5% to $2.60 per share.
About Restaurant Brands International (NYSE:QSR)
Restaurant Brands International Inc (NYSE: QSR) is a global quick-service restaurant company formed through the combination of established brands. The company’s principal holdings include Burger King, Tim Hortons and Popeyes, each of which operates under its own brand identity and menu. Restaurant Brands International’s business is centered on developing and expanding these franchised restaurant systems, supporting franchisees with brand management, supply chain coordination, and marketing programs.
RBI’s restaurants offer a range of quick-service food and beverage products: Burger King is known for its flame-grilled hamburgers and sandwiches, Tim Hortons for coffee, baked goods and breakfast items, and Popeyes for Louisiana-style fried chicken and seafood.
