Restaurant Brands International(US:QSR)2025-10-30 20:01Financial Performance - The company reported system-wide sales of $12,282 million for the three months ended September 30, 2025, representing a growth of 6.9% compared to $11,433 million in the same period of 2024[136]. - Comparable sales increased by 4.0% for the three months ended September 30, 2025, compared to a mere 0.3% growth in the same period of 2024[136]. - Total revenues for the three months ended September 30, 2025, increased to $2,449 million, up from $2,291 million, representing a growth of 6.9%[139]. - Net income from continuing operations for the three months ended September 30, 2025, was $440 million, an increase of 23.3% from $357 million in the prior year[144]. - Income from operations for the three months ended September 30, 2025, was $663 million, up 14.9% from $577 million in the same period of 2024[142]. - Adjusted Operating Income for Q3 2025 was $702 million, an increase of 8% from $652 million in Q3 2024[188]. - For the nine months ended September 30, 2025, Adjusted Operating Income was $1,910 million, up 5% from $1,824 million in the same period of 2024[188]. Restaurant Growth and Acquisitions - The net restaurant growth was 2.8% for the three months ended September 30, 2025, consistent with the 2.8% growth reported for the nine months ended September 30, 2025[136]. - The total system restaurant count reached 32,423 at the end of September 30, 2025, up from 31,525 at the end of September 30, 2024[136]. - The company completed the acquisition of Carrols Restaurant Group Inc. and Popeyes China, establishing a new segment called Restaurant Holdings[130]. - The company acquired Pangaea Foods (China) Holdings Ltd. on February 14, 2025, which is classified as discontinued operations[132]. - The increase in total revenues for the nine months ended September 30, 2025, was primarily driven by the net impact of restaurants acquired from franchisees, particularly from the Carrols Acquisition[141]. Segment Performance - System-wide sales for the BK segment increased to $2,956 million in Q3 2025, up from $2,891 million in Q3 2024, representing a growth of 2.3%[164]. - Comparable sales in the US for the BK segment grew by 3.2% in Q3 2025, compared to a decline of 0.4% in Q3 2024[164]. - Total revenues for the BK segment reached $387 million in Q3 2025, an increase of $25 million or 6.9% from $362 million in Q3 2024[170]. - System-wide sales for the PLK segment were $1,519 million in Q3 2025, slightly up from $1,509 million in Q3 2024, reflecting a growth of 0.7%[170]. - Total revenues for the PLK segment increased to $201 million in Q3 2025, a rise of $6 million or 3.1% from $195 million in Q3 2024[170]. - System-wide sales growth for the FHS segment increased by 10.7% in Q3 2025, compared to a decline of 1.3% in Q3 2024[174]. - The INTL segment reported system-wide sales of $5,447 million in Q3 2025, a 13.9% increase from $4,780 million in Q3 2024[177]. Financial Position and Cash Flow - As of September 30, 2025, the company had cash and cash equivalents of $1,206 million and borrowing availability of $1,248 million under its Revolving Credit Facility[191]. - Cash provided by operating activities increased to $1,159 million for the nine months ended September 30, 2025, up from $1,022 million in the prior year, driven by increased segment income and decreased working capital usage[207]. - Cash used for investing activities decreased significantly to $213 million for the nine months ended September 30, 2025, compared to $616 million in the prior year, primarily due to lower net payments for acquisition of franchised restaurants[208]. - Cash used for financing activities rose to $952 million for the nine months ended September 30, 2025, compared to $365 million in the prior year, mainly due to the non-recurrence of proceeds from long-term debt[209]. Debt and Dividends - As of September 30, 2025, total debt was primarily comprised of $5,942 million under Term Loan Facilities with a weighted average interest rate of 5.76%[199]. - Required debt service for the next twelve months is estimated to be approximately $345 million in interest payments and $79 million in principal payments[200]. - On October 7, 2025, the company paid a cash dividend of $0.62 per common share[202]. - The board of directors declared a cash dividend of $0.62 per common share to be paid on January 6, 2026[203]. Operational Efficiency - General and administrative expenses for the three months ended September 30, 2025, decreased to $170 million from $176 million, a reduction of 3.4%[146]. - Interest expense, net, decreased to $129 million for the three months ended September 30, 2025, down from $147 million, a decline of 12.2%[139]. - The effective tax rate for the three months ended September 30, 2025, was 17.6%, up from 16.7% in 2024, and for the nine months, it was 22.1% compared to 17.2% in 2024[157].