third quarter 2026
Filed Oct 29, 2026Restaurant Brands International Inc. Reports Third Quarter 2026 Results
Third-quarter comparable sales were 3.8%, led by 8.4% at BK US and 3.9% at INTL, while Total revenues rose to $ 2,525, Adjusted Operating Income rose to $ 737, and Adjusted Diluted Earnings per Share rose to $ 1.10. Popeyes comparable sales and Adjusted Operating Income declined, RH Adjusted Operating Income declined to $ 5, and net restaurant growth at BK was (0.9) %.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 System-wide Sales Growthother | 6.2 % | – | – |
| Q3 2026 System-wide Salesother | $12.97B | – | – |
| Q3 2026 Comparable Salesother | 3.8 % | – | – |
| Q3 2026 Net Restaurant Growthother | 3.0 % | – | – |
| Q3 2026 System Restaurant Count at Period Endother | 33,401 | – | – |
| Q3 2026 Total revenuesGAAP | $2.52B | – | 3.1 % |
| Q3 2026 Total operating costs and expensesGAAP | $1.83B | – | – |
| Q3 2026 Income from operationsGAAP | $696M | – | 5.0 % |
| Q3 2026 Net income from continuing operationsGAAP | $704M | – | 59.8 % |
| Q3 2026 Net incomeGAAP | $704M | – | – |
| Q3 2026 Net income attributable to common shareholdersGAAP | $542M | – | – |
| Q3 2026 Diluted net income per share from continuing operationsGAAP | $ 1.54 | – | – |
| Q3 2026 Diluted net income per shareGAAP | $ 1.54 | – | – |
| Q3 2026 Adjusted Operating Incomenon-GAAP | $737M | – | 5.0 % |
| Q3 2026 Organic AOI Growthnon-GAAP | 6.7 % | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $829M | – | 4.4 % |
| Q3 2026 Adjusted net incomenon-GAAP | $505M | – | 7.0 % |
| Q3 2026 Adjusted Diluted Earnings per Sharenon-GAAP | $ 1.10 | – | 6.9 % |
| Q3 2026 Organic Adj. EPS Growthnon-GAAP | 8.6 % | – | – |
| Q3 2026 Net Leveragenon-GAAP | 4.0x | – | – |
| Nine months 2026 System-wide Sales Growthother | 6.3 % | – | – |
| Nine months 2026 System-wide Salesother | $37.19B | – | – |
| Nine months 2026 Comparable Salesother | 3.6 % | – | – |
| Nine months 2026 Total revenuesGAAP | $7.31B | – | 4.9 % |
| Nine months 2026 Income from operationsGAAP | $2.02B | – | 27.7 % |
| Nine months 2026 Net income from continuing operationsGAAP | $1.81B | – | 95.6 % |
| Nine months 2026 Diluted net income per share from continuing operationsGAAP | $ 3.95 | – | – |
| Nine months 2026 Adjusted Operating Incomenon-GAAP | $2.06B | – | 7.9 % |
| Nine months 2026 Organic AOI Growthnon-GAAP | 7.8 % | – | – |
| Nine months 2026 Adjusted EBITDAnon-GAAP | $2.35B | – | 6.7 % |
| Nine months 2026 Adjusted Diluted Earnings per Sharenon-GAAP | $ 3.03 | – | 11.1 % |
| Nine months 2026 Free Cash Flownon-GAAP | $1.13B | – | – |
| Nine months 2026 Net cash provided by operating activitiesGAAP | $1.31B | – | – |
| Nine months 2026 Payments for additions of property and equipmentGAAP | $181M | – | – |
| September 30, 2026 Cash and cash equivalentsGAAP | $974M | – | – |
| September 30, 2026 Total debtnon-GAAP | 13,588 | – | – |
| September 30, 2026 Net debtnon-GAAP | 12,614 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| THTotal revenues increased due to higher Supply chain sales, primarily from equipment sales to franchisees and commodity prices, and increased System-wide Sales. Comparable Sales were 1.5 %, Net Restaurant Growth was 1.0 %, and Adjusted Operating Income was $ 317 versus $ 304. | $1.14B | – | 2.5 % organic |
| BKComparable Sales were 8.3 %, including Comparable Sales - US of 8.4 %. Total revenues and Adjusted Operating Income were driven primarily by Comparable Sales; Adjusted Operating Income was $ 136 versus $ 123. Net Restaurant Growth was (0.9) %. | $396M | – | 2.3 % organic |
| PLKCompany restaurant sales increased due to restaurants acquired during the period, while advertising fund contributions declined. Comparable Sales were (1.8) %, and Adjusted Operating Income was $ 58 versus $ 63, reflecting lower Comparable Sales and higher compensation-related Segment G&A. | $204M | – | 1.8 % |
| FHSTotal revenues and Adjusted Operating Income were primarily driven by restaurant-count growth. Net Restaurant Growth was 7.8 %, System Restaurant Count was 1,509, and Adjusted Operating Income was $ 16 versus $ 14. | $ 65 | – | 9.1 % organic |
| INTLRevenue growth reflected higher Burger King and Popeyes royalty revenues from increased System-wide Sales and the resumption of BK China royalty revenues. System-wide Sales Growth was 9.0 %, Comparable Sales were 3.9 %, Net Restaurant Growth was 5.6 %, and Adjusted Operating Income was $ 205 versus $ 189. | $289M | – | 8.8 % organic |
| RHRevenue growth was driven by BK US Comparable Sales and PLK China restaurant-count growth, partly offset by Carrols refranchisings. Adjusted Operating Income was $ 5 versus $ 10, as higher company restaurant expenses and Segment G&A more than offset higher revenues. | $487M | – | 6.2 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- NoteSegment G&A (excluding RH) for 2026 between $600 million and $620 million
- NoteRH AOI of approximately $10 to $20 million
- NoteAdjusted Interest Expense, net between $500 million and $520 million
- NoteConsolidated capital expenditures, tenant inducements and incentives (including RH), or "Total Capex and Cash Inducements" of around $400 million
- NoteLong-term consolidated performance on average, from 2024 to 2028: 3%+ Comparable Sales
- NoteLong-term consolidated performance on average, from 2024 to 2028: 8%+ organic Adjusted Operating Income growth
- Note5%+ Net Restaurant Growth towards the end of its algorithm period
Capital returns
- RBI returns $1.3 billion of capital to shareholders year to date through dividends and share repurchases.
- The Board declared a dividend of $0.65 per common share and partnership exchangeable unit of RBI LP for the fourth quarter of 2026, payable on January 5, 2027 to holders of record on December 22, 2026.
- For the three months ended September 30, 2026, RBI repurchased 817,041 common shares for $61 million and 2,784,549 Class B exchangeable limited partnership units for $214 million, excluding excise taxes.
- For the nine months ended September 30, 2026, payment of common share dividends and Partnership exchangeable unit distributions was $ 875 and repurchase of RBI common shares and Partnership exchangeable units was $ 444.
- As of September 30, 2026, $768 million remained under the share repurchase authorization. Subsequent to September 30, 2026 through October 23, 2026, RBI repurchased 235,276 common shares for $17 million; $751 million remained as of October 23, 2026.
What drove it
- Consolidated System-wide Sales Growth was 6.2 % on a constant currency basis, while Comparable Sales were 3.8 % and Net Restaurant Growth was 3.0 %.
- BK US Comparable Sales were 8.4 %, and BK segment Adjusted Operating Income increased to $ 136 from $ 123.
- INTL System-wide Sales Growth was 9.0 % and revenue growth included the resumption of royalty revenues from BK China.
- TH Adjusted Operating Income benefited primarily from tariff refunds and increased System-wide Sales.
- FHS revenue and Adjusted Operating Income increases were primarily driven by restaurant-count growth.
- The income tax benefit from continuing operations was $ 133, compared with income tax expense from continuing operations of $ 94. The filing attributes the effective-tax-rate change primarily to discrete tax benefits related to movements in net deferred tax assets from intra-group reorganizations undertaken in 2026.
Concerns
- PLK Comparable Sales were (1.8) %, including Comparable Sales - US of (2.2) %, and PLK Adjusted Operating Income declined to $ 58 from $ 63.
- BK Net Restaurant Growth was (0.9) % and its system restaurant count was 6,979, compared with 7,043.
- RH Adjusted Operating Income declined to $ 5 from $ 10, as higher company restaurant expenses and Segment G&A partly offset higher revenue.
- TH Total revenues and Adjusted Operating Income reflected unfavorable FX Impact of $16 million and $4 million, respectively. INTL Total revenues and Adjusted Operating Income each reflected unfavorable FX Impact of $2 million.
- Net Leverage was 4.0x as of September 30, 2026.
What to watch
- Delivery against the 2026 expectation for Segment G&A (excluding RH) between $600 million and $620 million.
- RH AOI relative to the approximately $10 to $20 million 2026 expectation and progress refranchising Carrols Burger King restaurants and finding new investors for PLK China and FHS Brazil.
- Progress of Burger King's Royal Reset: $198 million funded as of September 30, 2026 out of up to $550 million planned.
- Whether PLK Comparable Sales and Adjusted Operating Income recover from their third-quarter declines.
- Progress toward the long-term 3%+ Comparable Sales, 8%+ organic Adjusted Operating Income growth, and 5%+ Net Restaurant Growth objectives.
Balance sheet and cash flow
- Cash and cash equivalents were $ 974 as of September 30, 2026, compared with $ 1,163 as of December 31, 2025.
- Long-term debt, net of current portion was $ 13,184, current portion of long-term debt and finance leases was $ 89, and finance leases, net of current portion were $ 243 as of September 30, 2026.
- Net debt was 12,614 and Net Leverage was 4.0x as of September 30, 2026.
- Nine-month net cash provided by operating activities from continuing operations was $ 1,308, versus $ 1,159.
- Nine-month Free Cash Flow was $ 1,127, versus $ 996.
- Nine-month Total Capex and Cash Inducements were $ 219, versus $ 225.
Analysis
RBI reported third-quarter Total revenues of $ 2,525, compared with $ 2,449, and Income from operations of $ 696, compared with $ 663. System-wide Sales Growth was 6.2 % on a constant currency basis, Comparable Sales were 3.8 %, and Net Restaurant Growth was 3.0 %. Adjusted Operating Income increased to $ 737 from $ 702, while organic AOI Growth was 6.7 %.
Burger King was the principal domestic sales contributor. BK Comparable Sales were 8.3 %, including 8.4 % in the US, and BK Adjusted Operating Income increased to $ 136 from $ 123. International also contributed broad growth, with 9.0 % System-wide Sales Growth, 3.9 % Comparable Sales, 5.6 % Net Restaurant Growth, and $ 205 of Adjusted Operating Income. International revenue growth included the resumption of BK China royalty revenues.
Brand performance was uneven elsewhere. Tim Hortons Comparable Sales were 1.5 %, although Adjusted Operating Income increased to $ 317 from $ 304, primarily on tariff refunds and increased System-wide Sales. Popeyes Comparable Sales were (1.8) % and Adjusted Operating Income fell to $ 58 from $ 63 amid lower comparable sales and higher compensation-related Segment G&A. Firehouse Subs maintained 7.8 % Net Restaurant Growth, which drove higher revenue and Adjusted Operating Income.
The reported GAAP profit increase was materially affected by tax. Net income from continuing operations was $ 704 versus $ 440, and the filing reported an income tax benefit from continuing operations of $ 133 versus income tax expense of $ 94. The company cited discrete tax benefits from movements in net deferred tax assets tied to intra-group reorganizations undertaken in 2026. Adjusted Diluted Earnings per Share increased to $ 1.10 from $ 1.03, and organic Adj. EPS Growth was 8.6 %.
Capital allocation remained active. Nine-month Free Cash Flow was $ 1,127, compared with $ 996, while cash and cash equivalents were $ 974 and Net Leverage was 4.0x at September 30, 2026. RBI paid $ 875 of common-share dividends and Partnership exchangeable unit distributions and repurchased $ 444 of common shares and Partnership exchangeable units in the first nine months. The company maintained its 2026 outlook, including Segment G&A excluding RH between $600 million and $620 million, RH AOI of approximately $10 to $20 million, Adjusted Interest Expense, net between $500 million and $520 million, and Total Capex and Cash Inducements of around $400 million.
Management, verbatim
At our Investor Day earlier this year, we highlighted what makes RBI a strong business – four iconic global brands, the ability to invest for long-term growth, and talented teams and franchisees around the world. Those strengths are on display again this quarter, with over 3% global comparable sales led by outperformance at Burger King and steady growth at International and Tim Hortons. I'm proud of what we're accomplishing together. Across our brands, we're continuing to listen to our guests and act on their feedback to deliver the quality, service, and convenience they expect every day.
Josh Kobza, Chief Executive Officer of RBI
Not in the filing
stated, not guessed- Gross margin was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly Free Cash Flow was not reported.
- Prior-quarter comparisons for the reported third-quarter metrics were not reported.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- A consolidated GAAP operating-expense guidance figure was not reported.
- Revenue, gross-margin, and tax-rate guidance were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.