Restaurant Brands International Inc. Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Restaurant Brands International Inc. (RBI) reported a consolidated system-wide sales growth of 5.8% in Q4 2025 and 5.3% for the full year 2025, with comparable sales increasing by 3.1% in Q4 [1][2] - The company achieved its 2025 targets for organic Adjusted Operating Income (AOI) growth and net leverage, returning approximately $1.1 billion of capital to shareholders while investing for growth [1][4] - CEO Josh Kobza highlighted the consistent execution from teams and franchisees, leading to a third consecutive year of roughly 8% organic AOI growth [1][3] Operational Highlights - System-wide sales for Q4 2025 reached $12.131 billion, up from $11.279 billion in Q4 2024, while total revenues for the year were $46.762 billion compared to $44.476 billion in 2024 [1][2] - Net restaurant growth was reported at 2.9% for Q4 and 2.9% for the full year, with a total system restaurant count of 33,041 at the end of 2025 [1][2] - Adjusted Operating Income for Q4 was $674 million, reflecting a 15.6% growth compared to Q4 2024, while the full year adjusted operating income was $2.584 billion, up 8.3% from 2024 [1][2] Financial Performance - Total revenues for Q4 2025 were $2.466 billion, an increase from $2.296 billion in Q4 2024, while full-year revenues rose to $9.434 billion from $8.406 billion [1][5] - Net income from continuing operations for Q4 was $274 million, down from $361 million in Q4 2024, with diluted earnings per share from continuing operations at $0.60 compared to $0.79 in the prior year [1][5] - The company declared a dividend of $0.65 per common share for Q1 2026, with an annual total dividend target of $2.60 per share for 2026 [1][4] Segment Performance - Tim Hortons (TH) reported system-wide sales growth of 2.7% in Q4 2025, while Burger King (BK) saw a 1.9% increase, and Popeyes (PLK) experienced a decline of 2.5% [2][3] - The International (INTL) segment achieved a system-wide sales growth of 11.9% in Q4, driven by strong performance from Burger King and Popeyes [3][4] - The Restaurant Holdings (RH) segment, which includes results from the Carrols acquisition, reported total revenues of $480 million in Q4 2025, up from $445 million in Q4 2024 [4][5] Future Outlook - For 2026, RBI expects consolidated capital expenditures of around $400 million and adjusted interest expense between $500 million and $520 million [4][5] - The company aims for long-term consolidated performance of 8%+ organic AOI growth and 3%+ comparable sales from 2024 to 2028 [4][5] - RBI continues to focus on refranchising efforts and enhancing operational efficiency across its brands [4][5]