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] - Organic adjusted operating income (AOI) growth was 8.3%, and nominal adjusted EPS growth exceeded 10% [7][31] - The company achieved its third consecutive year of approximately 8% organic adjusted operating income growth, demonstrating consistency within the industry [7][50] Business Line Data and Key Metrics Changes - Tim Hortons, which represents about 42% of operating profit, achieved comparable sales growth of 2.8% in Canada, outperforming the broader Canadian QSR industry [10] - The international segment, contributing around 27% of operating profit, saw comparable sales grow by 4.9% for the full year, with system-wide sales growth nearing 11% [15] - Burger King U.S. reported comparable sales growth of 1.6% for the full year, with a notable 2.6% in the fourth quarter [20] Market Data and Key Metrics Changes - In Canada, Tim Hortons experienced a solid performance despite macroeconomic challenges, with breakfast food sales growing by 3.5% [11] - The international segment's performance was bolstered by strong results in markets like France and Australia, with double-digit system-wide sales growth [15][17] - Burger King China reported a 9.2% increase in comparable sales, driven by improved restaurant fundamentals and marketing efforts [16] Company Strategy and Development Direction - The company is focused on long-term growth, with plans to return to a 99% franchise business model and accelerate net restaurant growth to 5%+ [9][32] - A new partnership with CPE in China aims to double Burger King China's restaurant footprint to at least 2,500 units by 2030 [16] - The company is prioritizing operational consistency and franchisee profitability, particularly at Popeyes, where leadership changes have been made to enhance performance [25][26] 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 remained resilient [44] - The company expects to build on the momentum from 2025, with a commitment to delivering another year of 8% organic AOI growth in 2026 [42][43] - Management highlighted the importance of franchisee profitability as a key metric for assessing business health, with Tim Hortons maintaining strong average four-wall EBITDA [45] Other Important Information - The company generated nearly $1.6 billion in free cash flow in 2025 and returned $1.1 billion to shareholders through dividends [36] - The total liquidity at year-end was approximately $2.4 billion, with a net leverage ratio of 4.2x [37] - The upcoming Investor Day on February 26 will provide further insights into the company's strategic plans and performance metrics [9] 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 structural growth in many international markets [60][62] Question: Can you summarize the performance in developed markets, particularly Europe? - Management noted that Western European markets showed consistent positive performance, with strong results across major markets like France, Spain, and Germany [71]