Restaurant Brands Q2 2026 earnings: Burger King and international growth lead results

Restaurant Brands International (NYSE: QSR) reported Q2 2026 revenue of US$2.52 billion, up 4.5% from US$2.41 billion a year earlier, while GAAP diluted EPS from continuing operations rose to US$1.45 from US$0.58. Adjusted diluted EPS increased 12.9% to US$1.07. Burger King and International led the operating performance, offsetting declining Popeyes sales and nearly flat comparable sales at Tim Hortons.

Core earnings data

Global comparable sales accelerated to 3.8% from 2.4%, while constant-currency system-wide sales growth reached 6.4%. Adjusted operating income and adjusted EBITDA grew at mid-single-digit rates, a more moderate pace than the increase in GAAP earnings.

The large difference between GAAP and adjusted profit growth reflected favorable movements in other operating items and income taxes, rather than operating growth alone.

System-wide sales represent sales generated by franchised and company-operated restaurants and are not recorded as RBI revenue. The reported system-wide growth rate is calculated at constant currency, while the dollar values are nominal.

Business and segment performance

Performance varied significantly across RBI’s brands. Burger King and International generated the strongest comparable-sales and adjusted operating income growth, while Popeyes remained the main drag.

Burger King’s comparable sales rose 8.6%, including 8.5% in the U.S. Revenue growth was partly offset by refranchising, but higher franchise and property revenue lifted adjusted operating income. Under the Reclaim the Flame plan, RBI had funded US$194 million of up to US$550 million planned for Royal Reset investments as of June 30.

International revenue benefited from higher Burger King and Popeyes royalty revenue, increased system-wide sales, and resumed royalties from Burger King China. Excluding a favorable US$4 million foreign-exchange effect, International revenue increased by US$20 million; adjusted operating income also rose by US$20 million excluding currency effects.

Tim Hortons revenue increased primarily because of higher commodity prices and consumer packaged goods sales, but higher supply-chain costs limited profit growth. Popeyes’ revenue and profit declines were driven by weaker comparable sales. Firehouse Subs’ improvement came mainly from restaurant expansion, with net restaurant growth of 8.1% despite limited comparable-sales growth.

Restaurant Holdings benefited from Burger King U.S. comparable sales and additional Popeyes China restaurants. Adjusted operating income was nearly flat because revenue growth was absorbed by higher company restaurant expenses, depreciation and amortization, and costs associated with scaling the international start-up operations.

GAAP earnings rose much faster than underlying operating profit

GAAP income from operations increased 48.4%, compared with 6.9% growth in adjusted operating income. One major contributor was the swing in other operating items: RBI recorded US$26 million of other operating income in Q2 2026, compared with US$149 million of other operating expense a year earlier.

The tax line created an additional difference. RBI recognized a US$73 million income tax benefit from continuing operations, versus US$87 million of tax expense in Q2 2025. The company attributed the effective tax-rate change primarily to discrete deferred-tax benefits associated with intra-group reorganizations, partly offset by OECD administrative guidance issued in 2025.

As a result, net income from continuing operations rose 152.1%, while adjusted net income increased a more moderate 13.6% to US$490 million. The adjusted figures therefore provide a clearer view of the quarter’s underlying operating trend than the unusually large GAAP increase alone.

Cash flow, leverage and capital allocation

Cash-flow information was provided for the first six months rather than Q2 alone. First-half operating cash flow increased to US$757 million from US$567 million, while free cash flow rose to US$648 million from US$465 million after US$109 million of property and equipment spending.

Cash and cash equivalents stood at US$1.06 billion, down from US$1.16 billion at December 31, 2025. Net debt declined to US$12.55 billion from US$13.01 billion a year earlier, and net leverage improved to 4.1 times from 4.6 times.

RBI reported returning US$435 million to shareholders through dividends and repurchases during Q2. It repurchased approximately 1.82 million shares for US$137 million during the quarter, leaving US$829 million under its authorization at June 30. The board also declared a third-quarter dividend of US$0.65 per common share and partnership exchangeable unit.

2026 guidance

RBI maintained its quantitative 2026 spending and profitability ranges. Q2 organic adjusted operating income growth was 6.7%, while the first-half rate was 8.5%; the company said it remains on track for 8% organic adjusted operating income growth for the year.

For its 2024–2028 long-term framework, RBI continues to target average comparable-sales growth of at least 3% and organic adjusted operating income growth of at least 8%. It also expects net restaurant growth to reach at least 5% toward the end of that period.

Risks investors need to watch

• Brand performance remains uneven. Popeyes comparable sales declined 5.1%, while Tim Hortons increased only 0.1%, leaving consolidated growth more dependent on Burger King and International.
• Restaurant expansion needs to accelerate. Consolidated net restaurant growth was 2.9%, unchanged from the prior year and still requiring acceleration to reach RBI’s long-term goal of at least 5% near the end of the framework period.
• Leverage remains material. Net leverage improved to 4.1 times, but RBI still expects US$500 million–US$520 million of adjusted net interest expense in 2026.
• Restaurant Holdings requires execution. RBI is working to refranchise most Carrols Burger King restaurants, find a new Popeyes China partner and attract investors for Firehouse Subs Brazil. Start-up costs and the timing of these transactions can affect segment profitability.
• Commodity costs are affecting Tim Hortons’ economics. Higher commodity prices increased supply-chain revenue but also raised supply-chain cost of sales, limiting the benefit to adjusted operating income.

Summary

Restaurant Brands’ Q2 2026 performance was led by Burger King and International, which produced higher comparable sales and double-digit adjusted operating income growth. Popeyes remained under pressure, while Tim Hortons’ sales were nearly flat despite higher supply-chain revenue. Cash flow and leverage improved on a first-half basis, but the sharp increase in GAAP earnings was amplified by favorable other operating items and tax benefits. The main next steps are sustaining Burger King and International momentum, improving Popeyes, accelerating restaurant growth and delivering the reaffirmed 2026 outlook.