Financial Data and Key Metrics Changes - For the full year 2025, the company delivered comparable sales growth of 2.4%, net restaurant growth of 2.9%, and system-wide sales growth of 5.3% [31][32] - Organic adjusted operating income growth was 8.3%, and nominal adjusted EPS growth was over 10% [7][30] - The company achieved its third consecutive year of approximately 8% organic adjusted operating income growth, demonstrating consistency within the industry [7][49] Business Line Data and Key Metrics Changes - Tim Hortons, which represents roughly 42% of operating profit, delivered comparable sales growth of 2.8% in Canada, outperforming the broader Canadian QSR industry [10][14] - The international segment, contributing about 27% of operating profit, saw comparable sales growth of 4.9% and net restaurant growth of 4.9%, driving system-wide sales growth of nearly 11% [14][15] - Burger King U.S. achieved comparable sales growth of 1.6% for the full year, including 2.6% in the fourth quarter [20][24] - Popeyes experienced a net restaurant growth of 1.6% but faced a decline in comparable sales of 3.2% for the year, resulting in system-wide sales growth of -0.7% [25][28] Market Data and Key Metrics Changes - In the international markets, particularly in Europe and Asia Pacific, the company benefited from structural growth and positive same-store sales, with notable performance in France and Japan [62][66] - Burger King China reported a 9.2% growth in comparable sales, driven by improvements in restaurant fundamentals and a new joint venture with CPE [16][17] Company Strategy and Development Direction - The company is focused on long-term investments and operational improvements, with a goal to return to a 99% franchise business model [9][30] - The strategy includes refranchising efforts at Burger King U.S. and expanding the restaurant footprint in China [6][30] - The upcoming Investor Day on February 26 will address the company's growth algorithm and plans for net restaurant growth [9][30] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year due to elevated costs and macroeconomic pressures, but the fundamentals of the business showed resilience [44][46] - The company expects to ramp back towards 5% unit growth by the end of the growth algorithm period, with a positive outlook for 2026 [32][40] - Management expressed confidence in the ability to build on the momentum from 2025, emphasizing the importance of franchisee profitability and operational consistency [30][44] Other Important Information - The company generated nearly $1.6 billion of free cash flow in 2025 and returned $1.1 billion of capital to shareholders through dividends [36][37] - The total liquidity at year-end was approximately $2.4 billion, with a net leverage ratio of 4.2x [37] Q&A Session Summary Question: Can you discuss the comparable sales evolution and trajectory in 2026, particularly for Tim Hortons and Burger King? - Management indicated that the strong performance in 2025 sets a positive foundation for 2026, with expectations for a similar consumer environment and continued focus on fundamentals [53][54] Question: How much of the international momentum is driven by a healthier backdrop versus share gains? - Management responded that the momentum is a combination of a supportive market backdrop and effective local strategies, with strong performance in various international markets [60][63] Question: Can you summarize the performance in developed markets, particularly Europe? - Management highlighted consistent positive performance across major Western European markets, with strong results in Turkey and a healthy business in Canada [71][72]