Consolidated System-wide Sales grow 6.4% year-over-year, including 10.7% in International
Comparable Sales accelerated to 3.8%, including 8.5% at BK US and 5.5% at International
RBI returns $435 million of capital to shareholders via dividends and share repurchases
RBI remains on track for 8% organic Adjusted Operating Income growth in 2026
MIAMI, Aug. 6, 2026 /PRNewswire/ -- Restaurant Brands International Inc. ("RBI") $(QSR)$ (TSX: QSR) (TSX: QSP) today reported financial results for the second quarter ended June 30, 2026. Josh Kobza, Chief Executive Officer of RBI commented, "We built on our strong start to 2026 with another quarter of over 3% global comparable sales and double-digit earnings growth, led by Burger King's standout performance and continued strength at International. These results show the benefits of our diversified portfolio and that the strategy we outlined at Investor Day is working. Burger King's performance is a great example of what's possible when you invest in the fundamentals and execute well -- an approach we're applying across all of our brands."
Consolidated Operational and Financial Highlights
(in US$ millions, except per share and ratio data, unaudited)
Three Months Ended June
30, Six Months Ended June 30,
--------------------------
Operational
Highlights 2026 2025 2026 2025
--------- --------- ---------- ---------
System-wide
Sales
Growth (a) 6.4 % 5.3 % 6.3 % 4.1 %
System-wide
Sales (a) $ 12,702 $ 11,853 $ 24,213 $ 22,349
Comparable
Sales 3.8 % 2.4 % 3.5 % 1.3 %
Net
Restaurant
Growth 2.9 % 2.9 % 2.9 % 2.9 %
System
Restaurant
Count at
Period End 33,156 32,229 33,156 32,229
GAAP
Financials
Total
Revenues $ 2,520 $ 2,410 $ 4,784 $ 4,519
Income from
Operations $ 716 $ 483 $ 1,322 $ 918
Income from
Operations
Growth 48.4 % (27.2) % 44.0 % (24.0) %
Net Income
from
Continuing
Operations $ 665 $ 264 $ 1,110 $ 487
Diluted
Earnings
per Share
from
Continuing
Operations $ 1.45 $ 0.58 $ 2.42 $ 1.07
Financial
Highlights
(b)
Adjusted
Operating
Income
(AOI) $ 715 $ 668 $ 1,324 $ 1,208
Organic AOI
Growth 6.7 % 5.7 % 8.5 % 4.3 %
Adjusted
EBITDA $ 810 $ 762 $ 1,517 $ 1,404
Adjusted
Diluted
Earnings
per Share
(Adj. EPS) $ 1.07 $ 0.94 $ 1.93 $ 1.70
Nominal Adj.
EPS Growth 12.9 % 9.2 % 13.7 % 6.5 %
Organic Adj.
EPS Growth 12.3 % 10.3 % 11.8 % 10.0 %
Net Leverage 4.1x 4.6x 4.1x 4.6x
(a) System-wide Sales Growth is calculated on a constant currency basis and
therefore will not recalculate to the percentage change in System-wide
Sales, which is reported on a nominal basis.
(b) Non-GAAP metrics. Please refer to "Non-GAAP Financial Measures" for
further detail.
Reporting Segments
We have six operating and reportable segments, including four franchisor segments for our Tim Hortons, Burger King, Popeyes, and Firehouse Subs brands in the U.S. and Canada ("TH", "BK", "PLK", and "FHS", respectively) and a fifth franchisor segment for all of our brands in the rest of the world ("INTL"). Additionally, we have a sixth operating and reportable segment, Restaurant Holdings ("RH"), which includes the operations of Burger King restaurants acquired as part of our acquisition of Carrols Restaurant Group Inc. (the "Carrols Acquisition"), as well as our acquisition of Popeyes China ("PLK China") ("PLK China Acquisition") and Firehouse Subs Brazil ("FHS Brazil") restaurants.
RBI maintains the franchisor dynamics in its TH, BK, PLK, FHS, and INTL segments ("Five Franchisor Segments") to report results consistent with how the business will be managed long-term. This approach reflects RBI's intent to refranchise the vast majority of the Carrols Burger King restaurants and to find a new partner for PLK China and new investors for FHS Brazil and sunset the RH segment. RH results include Company restaurant sales and expenses, including expenses associated with royalties, rent, and advertising. These expenses are recognized, as applicable, as revenues in the respective franchisor segments (BK for the Carrols Burger King restaurants and INTL for PLK China and FHS Brazil restaurants) and eliminated upon consolidation.
Items Affecting Comparability
Burger King China
On February 14, 2025, we acquired substantially all of the remaining equity interests in Burger King China ("BK China"). For 2025, BK China was classified as held for sale and reported as discontinued operations. As such, for 2025, results for BK China were not recognized in the INTL segment. However, BK China KPIs continued to be included in our INTL segment KPIs.
On January 30, 2026, we established a joint venture with CPE Alder Investment Limited, a fund managed by CPE ("CPE"), with respect to the operations of BK China (such joint venture, the "BK China JV"). CPE invested $350 million of primary capital into the BK China JV. Following the transaction, we deconsolidated BK China and began accounting for our remaining 17% equity interest in the BK China JV under the equity method of accounting and recognizing franchise revenue, primarily related to royalties, in our INTL segment. We refer to the acquisition of BK China and the subsequent establishment of the BK China JV collectively as the "BK China Transactions."
2026 Convention Timing Impact on Franchise and Property Results
In 2025, PLK and INTL hosted conventions in Q2, BK and FHS hosted conventions in Q3, and TH did not host a convention. In 2026, PLK and FHS will host conventions in Q3, TH and BK will host conventions in Q4, and INTL will not host a convention. Convention-related revenues and expenses are recognized in each segment's Franchise and property revenues and Segment F&P expenses, respectively, and have an immaterial net AOI impact.
Supplemental Disclosures
Please review the Trending Schedules posted on the RBI Investor Relations webpage under "Financial Information" for additional disclosures, including:
-- Home Market and International KPIs by Brand and Company Restaurant Count
by Segment;
-- Segment Results with Disaggregated Franchise and Property Revenues
(Royalties, Property Revenue and Franchise Fees and Other Revenue);
-- Intersegment Revenue and Expense Eliminations;
-- Burger King US "Reclaim the Flame" Expenditures by Quarter; and
-- RH Burger King Carrols Restaurant-Level EBITDA Margins.
Six Months Ended June
TH Segment Results Three Months Ended June 30, 30,
----------------------------- ------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
--- --------- --------- --------- ---------
System-wide Sales
Growth (a) 0.4 % 3.9 % 1.3 % 2.1 %
System-wide Sales
(a) $ 2,003 $ 1,995 $ 3,741 $ 3,626
Comparable Sales 0.1 % 3.4 % 0.8 % 1.8 %
Comparable Sales
- Canada 0.1 % 3.6 % 0.7 % 2.0 %
Net Restaurant
Growth 1.1 % 0.3 % 1.1 % 0.3 %
System Restaurant
Count at Period
End 4,570 4,521 4,570 4,521
Supply chain sales $ 788 $ 732 $ 1,474 $ 1,343
Company restaurant
sales $ 11 $ 12 $ 20 $ 22
Franchise and
property
revenues $ 262 $ 262 $ 495 $ 480
Advertising
revenues and
other services $ 76 $ 78 $ 145 $ 142
--- --------- --------- --------- ---------
Total
revenues $ 1,137 $ 1,083 $ 2,134 $ 1,987
Supply chain cost
of sales $ 635 $ 589 $ 1,199 $ 1,085
Company restaurant
expenses $ 9 $ 10 $ 18 $ 19
Segment F&P
expenses $ 86 $ 83 $ 168 $ 161
Advertising
expenses and
other services $ 90 $ 93 $ 172 $ 159
Segment G&A $ 34 $ 34 $ 68 $ 71
Adjustments:
Cash
distributions
received from
equity method
investments $ 4 $ 4 $ 7 $ 7
--- --------- --------- --------- ---------
Adjusted Operating
Income $ 287 $ 278 $ 516 $ 499
(a) System-wide Sales Growth is calculated on a constant currency basis and
therefore will not recalculate to the percentage change in System-wide Sales,
which is reported on a nominal basis.
For the second quarter, the increase in Total revenues was primarily driven by higher Supply chain sales due to increases in commodity prices and CPG net sales.
The increase in Adjusted Operating Income was primarily driven by revenue growth, partially offset by higher Supply chain cost of sales primarily due to higher commodity prices.
BK Segment Results Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
------------- ------------- ------------- -------------
System-wide Sales
Growth 8.2 % 1.0 % 6.9 % (0.3) %
System-wide Sales $ 3,193 $ 2,952 $ 6,046 $ 5,652
Comparable Sales 8.6 % 1.3 % 7.2 % 0.0 %
Comparable Sales
- US 8.5 % 1.5 % 7.2 % 0.2 %
Net Restaurant
Growth (0.8) % (1.2) % (0.8) % (1.2) %
System Restaurant
Count at Period
End 6,992 7,046 6,992 7,046
Company restaurant
sales $ 44 $ 61 $ 90 $ 121
Franchise and
property revenues
(a) $ 198 $ 182 $ 376 $ 350
Advertising
revenues and
other services
(b) $ 155 $ 144 $ 295 $ 273
------------- ------------- ------------- -------------
Total
revenues $ 397 $ 388 $ 762 $ 744
Company restaurant
expenses $ 39 $ 57 $ 82 $ 111
Segment F&P
expenses $ 33 $ 33 $ 66 $ 64
Advertising
expenses and
other services $ 156 $ 147 $ 297 $ 278
Segment G&A $ 31 $ 31 $ 64 $ 67
------------- ------------- ------------- -------------
Adjusted Operating
Income $ 137 $ 121 $ 252 $ 224
(a) Franchise and property revenues include intersegment revenues with RH
consisting of royalties and rent of $30 million and $57 million during
the three and six months ended June 30, 2026, respectively, and $27
million and $55 million during three and six months ended June 30, 2025,
which are eliminated in consolidation.
(b) Advertising revenues and other services include intersegment revenues
with RH consisting of advertising contributions and tech fees of $24
million and $45 million during the three and six months ended June 30,
2026, respectively, and $22 million and $42 million during the three and
six months ended June 30, 2025, which are eliminated in consolidation.
As a reminder, BK segment results are presented consistently with our franchisor model. As such, results include intersegment Franchise and property revenues and Advertising revenues and other services from the Carrols Burger King restaurants included in RH (as footnoted above).
Burger King US Reclaim the Flame
Burger King is executing its multi-year "Reclaim the Flame" plan to accelerate sales growth and drive franchisee profitability. This plan includes investing up to $700 million through year-end 2028, comprised of advertising and digital investments (which were completed in 2024) and high-quality remodels and relocations, restaurant technology, kitchen equipment, and building enhancements ("Royal Reset"). As of June 30, 2026, we have funded $194 million out of up to $550 million planned toward the Royal Reset investments.
Second Quarter 2026 Results
The increase in Total revenues was primarily driven by the increase in Comparable Sales, partially offset by the net impact of refranchisings.
The increase in Adjusted Operating Income was primarily driven by higher Franchise and property revenues.
PLK Segment
Results Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
System-wide Sales
Growth (3.1) % 1.6 % (3.5) % (0.4) %
System-wide Sales $ 1,529 $ 1,578 $ 2,950 $ 3,053
Comparable Sales (5.1) % (1.4) % (5.8) % (2.7) %
Comparable Sales
- US (5.2) % (0.9) % (5.8) % (2.4) %
Net Restaurant
Growth 0.5 % 2.5 % 0.5 % 2.5 %
System Restaurant
Count at Period
End 3,542 3,524 3,542 3,524
Company restaurant
sales $ 46 $ 46 $ 90 $ 93
Franchise and
property
revenues $ 81 $ 87 $ 156 $ 165
Advertising
revenues and
other services $ 72 $ 77 $ 143 $ 147
------------- ------------- ------------- -------------
Total
revenues $ 199 $ 210 $ 389 $ 404
Company restaurant
expenses $ 41 $ 40 $ 79 $ 79
Segment F&P
expenses $ 3 $ 6 $ 6 $ 8
Advertising
expenses and
other services $ 74 $ 80 $ 148 $ 152
Segment G&A $ 18 $ 19 $ 36 $ 40
------------- ------------- ------------- -------------
Adjusted Operating
Income $ 63 $ 66 $ 119 $ 126
For the second quarter, the decrease in Total revenues and Adjusted Operating Income was primarily driven by the decline in Comparable Sales.
FHS Segment
Results Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
------------- ------------- ------------- -------------
System-wide Sales
Growth 7.5 % 6.3 % 7.4 % 6.8 %
System-wide Sales $ 361 $ 336 $ 708 $ 658
Comparable Sales 0.4 % (0.8) % 0.0 % (0.2) %
Comparable Sales
- US 0.7 % (1.1) % 0.5 % (0.4) %
Net Restaurant
Growth 8.1 % 6.4 % 8.1 % 6.4 %
System Restaurant
Count at Period
End 1,482 1,371 1,482 1,371
Company restaurant
sales $ 12 $ 11 $ 23 $ 22
Franchise and
property
revenues $ 29 $ 28 $ 58 $ 54
Advertising
revenues and
other services $ 21 $ 20 $ 40 $ 36
------------- ------------- ------------- -------------
Total
revenues $ 62 $ 59 $ 121 $ 113
Company restaurant
expenses $ 10 $ 9 $ 20 $ 19
Segment F&P
expenses $ 2 $ 2 $ 4 $ 3
Advertising
expenses and
other services $ 21 $ 20 $ 42 $ 38
Segment G&A $ 12 $ 13 $ 25 $ 27
------------- ------------- ------------- -------------
Adjusted Operating
Income $ 17 $ 15 $ 31 $ 26
For the second quarter, the increase in Total revenues and Adjusted Operating Income was primarily driven by the increase in restaurant count.
INTL Segment
Results Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
------------- ------------- ------------- -------------
System-wide Sales
Growth (a) 10.7 % 9.8 % 10.9 % 9.3 %
System-wide Sales
(a) $ 5,616 $ 4,992 $ 10,768 $ 9,360
Comparable Sales 5.5 % 4.2 % 5.6 % 3.4 %
Comparable Sales
- INTL - Burger
King 5.4 % 4.1 % 5.4 % 3.4 %
Net Restaurant
Growth 5.1 % 5.4 % 5.1 % 5.4 %
System Restaurant
Count at Period
End 16,570 15,767 16,570 15,767
Franchise and
property
revenues $ 253 $ 228 $ 488 $ 428
Advertising
revenues and
other services $ 22 $ 21 $ 40 $ 40
------------- ------------- ------------- -------------
Total
revenues $ 274 $ 250 $ 528 $ 468
Segment F&P
expenses $ 3 $ 9 $ (11) $ 14
Advertising
expenses and
other services $ 24 $ 23 $ 46 $ 45
Segment G&A $ 52 $ 47 $ 103 $ 98
------------- ------------- ------------- -------------
Adjusted Operating
Income $ 194 $ 172 $ 390 $ 310
(a) System-wide Sales Growth is calculated on a constant currency basis and
therefore will not recalculate to the percentage change in System-wide Sales, which is reported on a nominal basis
For the second quarter, the increase in Total revenues was primarily driven by higher royalty revenues from Burger King and Popeyes restaurants resulting from the increase in System-wide Sales, as well as the resumption of royalty revenues from BK China. Results also reflect a favorable FX Impact of $4 million. Excluding the FX Impact, Total revenues increased by $20 million.
The increase in Adjusted Operating Income was driven by revenue growth, partially offset by an increase in Segment G&A primarily due to higher compensation-related expenses. Results also reflect a favorable FX Impact of $2 million. Excluding the FX Impact, Adjusted Operating Income increased by $20 million.
RH Segment Results Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
------------- ------------- ------------- -------------
System-wide Sales $ 506 $ 469 $ 954 $ 895
System-wide Sales
- BK US $ 493 $ 464 $ 932 $ 887
System-wide Sales
- INTL $ 13 $ 5 $ 23 $ 8
Comparable Sales 9.0 % 2.9 % 6.8 % 1.0 %
Comparable Sales
- BK US 9.2 % 2.9 % 6.9 % 1.0 %
System Restaurant
Count at Period
End 1,104 1,044 1,104 1,044
System Restaurant
Count at Period
End - BK US 994 1,012 994 1,012
System Restaurant
Count at Period
End - INTL 110 32 110 32
Total revenues $ 506 $ 469 $ 953 $ 901
Food, beverage
and packaging
costs $ 154 $ 134 $ 287 $ 255
Restaurant wages
and related
expenses $ 154 $ 152 $ 300 $ 297
Restaurant
occupancy and
other expenses
(a) $ 128 $ 120 $ 250 $ 233
------------- ------------- ------------- -------------
Company restaurant
expenses $ 435 $ 406 $ 836 $ 785
Advertising
expenses and
other services
(b) $ 27 $ 24 $ 50 $ 45
Segment G&A $ 27 $ 23 $ 51 $ 48
------------- ------------- ------------- -------------
Adjusted Operating
Income $ 17 $ 16 $ 16 $ 23
Note: RH KPIs are shown consistently with RBI's reporting calendar, but in
2025, results from BK Carrols restaurants in the statements of operations were
shown consistently with the Carrols reporting calendar which for the three and
six months ended June 30, 2025 were from March 31, 2025 to June 29, 2025 and
from December 30, 2024 to June 29, 2025, respectively.
(a) Restaurant occupancy and other expenses include intersegment royalties
and property expenses of $31 million and $58 million during the three and
six months ended June 30, 2026, respectively, and $27 million and $55
million for the three and six months ended June 30, 2025, which are
eliminated in consolidation.
(b) Advertising expenses and other services include intersegment advertising
expenses and tech fees of $24 million and $45 million during the three
and six months ended June 30, 2026, respectively, and $22 million and $42
million for the three and six months ended June 30, 2025, which are
eliminated in consolidation.
The RH segment includes results from (i) Burger King restaurants acquired as part of the Carrols Acquisition and (ii) PLK China and FHS Brazil restaurants. RBI is actively working to refranchise the Carrols Burger King restaurants, and as a result, RH segment results reflect the impact of refranchisings as well as incremental investments in the PLK China and FHS Brazil start-up businesses.
For the second quarter, the increase in Total revenues was primarily driven by an increase in BK US Comparable Sales and an increase in PLK China restaurant count, partially offset by BK US refranchisings.
Adjusted Operating Income remained relatively flat as revenue growth was offset by an increase in Company restaurant expenses. The increase in Company restaurant expenses reflects higher BK US Company restaurant expenses, primarily driven by increased sales and depreciation and amortization expense, as well as expenses related to scaling our international start-up businesses.
Cash and Liquidity
The RBI Board of Directors has declared a dividend of $0.65 per common share and partnership exchangeable unit of RBI LP for the third quarter of 2026. The dividend will be payable on October 2, 2026 to shareholders and unitholders of record at the close of business on September 18, 2026.
On August 6, 2025, our Board of Directors approved a share repurchase program authorizing the repurchase of up to $1,000 million of our common shares from September 15, 2025 through September 30, 2027. For the three months ended June 30, 2026, we repurchased 1,821,167 of our common shares for $137 million, excluding excise taxes. Of these repurchases, 13,782 common shares had not yet settled as of June 30, 2026 and therefore were not retired at that date. As of June 30, 2026, we had $829 million remaining under the share repurchase authorization.
Subsequent Events
Subsequent to June 30, 2026 through July 31, 2026, we repurchased 463,385 of our common shares for $35 million and as of July 31, 2026 had $794 million remaining under the share repurchase authorization.
2026 Financial Guidance
For 2026, RBI continues to expect:
-- Segment G&A (excluding RH) for 2026 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
-- Consolidated capital expenditures, tenant inducements and incentives
(including RH), or "Total Capex and Cash Inducements" of around $400
million.
Long-Term Algorithm
RBI continues to expect the following long-term consolidated performance on average, from 2024 to 2028:
-- 3%+ Comparable Sales; and -- 8%+ organic Adjusted Operating Income growth.
In addition, RBI continues to expect to reach 5%+ Net Restaurant Growth towards the end of its algorithm period.
Investor Conference Call
We will host an investor conference call and webcast at 8:30 a.m. Eastern Time on Thursday, August 6, 2026, to review financial results for the second quarter ended June 30, 2026. The earnings call will be broadcast live via our investor relations website at http://rbi.com/investors and a replay will be available for a limited time following the release. The dial-in number is 1 (833) 461-5787 for U.S. callers, 1 (365) 657-4084 for Canadian callers, and 1 (585) 542-9983 for callers from other countries. For all dial-in numbers please use the following access code: 686849151.
Contacts:
Investors: investor@rbi.com
Media: media@rbi.com
About Restaurant Brands International Inc.
Restaurant Brands International Inc. is one of the world's largest quick service restaurant companies with nearly $49 billion in annual system-wide sales and over 33,000 restaurants in more than 120 countries and territories. RBI owns four of the world's most prominent and iconic quick service restaurant brands -- TIM HORTONS$(R)$, BURGER KING(R), POPEYES(R), and FIREHOUSE SUBS(R). These independently operated brands have been serving their respective guests, franchisees and communities for decades. Through its Restaurant Brands for Good framework, RBI is improving sustainable outcomes related to its food, the planet, and people and communities.
RBI's principal executive offices are in Miami, Florida. In North America, RBI's brands are headquartered in their home markets where they were founded decades ago: Canada for Tim Hortons and the U.S. for Burger King, Popeyes and Firehouse Subs. To learn more about RBI, please visit the company's website at www.rbi.com.
Forward-Looking Statements
This press release and our investor conference call contain certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties.
These forward-looking statements include statements about our expectations or beliefs regarding (i) the impact of macroeconomic pressures and currency fluctuations on our and our franchisees' results of operations and business; (ii) our remodel program and refranchising efforts; (iii) future share repurchases; (iv) leverage and free cash flow, including our path to achieving investment-grade status; (v) our and our franchisees' future operational and financial performance, including our performance against our long-term algorithm; (vi) certain tax matters, including our estimates with respect to tax matters and their impact on future periods, and any costs associated with contesting tax liabilities; (vii) our future financial obligations, including capital expenditures and dividend payments; (viii) efforts to identify long-term partners for Popeyes China and investors for FHS Brazil and the subsequent sunset of the RH segment; (ix) refranchising of restaurants acquired in the Carrols Acquisition; (x) commodity prices; (xi) certain accounting matters,
including the impact of changes in accounting standards and the assumptions underlying our critical accounting estimates; (xii) our growth opportunities and our ability to accelerate net restaurant growth, and (xiii) our plans and strategies for each of our brands to enhance operations and drive long-term, sustainable growth. The factors that could cause actual results to differ materially from our expectations are detailed in our filings with the Securities and Exchange Commission and applicable Canadian securities regulatory authorities, such as our annual and quarterly reports and current reports on Form 8-K, and include the following: (1) the effectiveness of our marketing, advertising and digital programs and franchisee support of these programs; (2) the effectiveness of our operational and culinary initiatives; (3) increased commodity prices; (4) significant and rapid fluctuations in interest rates and in the currency exchange markets and the effectiveness of our hedging activity; (5) changes in applicable tax laws or interpretations thereof, and our ability to accurately interpret and predict the impact of such changes or interpretations on our financial condition and results; (6) our supply chain operations; (7) our reliance on franchisees, including master franchisees and subfranchisees, to accelerate restaurant growth and execute their development commitments (including for BK China); (8) our relationship with, and the success of, our franchisees and risks related to our franchised business model; (9) our franchisees' financial stability and their ability to access and maintain the liquidity necessary to operate their businesses; (10) evolving legislation and regulations, including in the area of franchise and labor and employment law; (11) global economic or other business conditions that may affect the desire or ability of our guests to purchase our products, such as inflationary pressures, high unemployment levels, declines in median income growth, consumer confidence and consumer discretionary spending and changes in consumer perceptions of dietary health, food safety, brand identity and value; (12) our ability to refranchise restaurants acquired in the Carrols Acquisition and to identify and successfully consummate agreements with new partners for PLK China and new investors for FHS Brazil when we plan to do so, and our ability to subsequently sunset the RH segment; (13) the ability to access liquidity under our credit facilities and derivatives, including counterparty risks; (14) our indebtedness, which could adversely affect our financial condition and prevent us from fulfilling our obligations; (15) tariffs and their impact on economic conditions or our business; (16) our ownership and leasing of real estate; (17) our ability to successfully estimate the impact of certain accounting matters, including changes to factors underlying our critical accounting estimates and the price and pace of refranchisings; and (18) risks related to unforeseen events, such as natural disasters or pandemics.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In millions of U.S. dollars, except per share data, Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------ ------------------------------
2026 2025 2026 2025
-------------- -------------- -------------- --------------
Revenues:
Supply chain
sales $ 788 $ 732 $ 1,474 $ 1,343
Company
restaurant
sales 617 600 1,176 1,158
Franchise and
property
revenues 793 760 1,515 1,423
Advertising
revenues and
other
services 322 318 619 595
-------------- -------------- -------------- --------------
Total
revenues 2,520 2,410 4,784 4,519
Operating costs
and expenses:
Supply chain
cost of sales 635 589 1,199 1,085
Company
restaurant
expenses 508 498 985 966
Franchise and
property
expenses 139 144 258 274
Advertising
expenses and
other
services 369 364 710 675
General and
administrative
expenses 181 188 361 379
(Income) loss
from equity
method
investments (2) (5) (4) (10)
Other operating
expenses
(income), net (26) 149 (47) 232
-------------- -------------- -------------- --------------
Total
operating
costs and
expenses 1,804 1,927 3,462 3,601
-------------- -------------- -------------- --------------
Income from
operations 716 483 1,322 918
Interest expense,
net 124 132 247 262
-------------- -------------- -------------- --------------
Income from
continuing
operations before
income taxes 592 351 1,075 656
Income tax
(benefit)
expense from
continuing
operations (73) 87 (35) 169
-------------- -------------- -------------- --------------
Net income from
continuing
operations 665 264 1,110 487
Net loss from
discontinued
operations
(net of tax of
$0) -- 1 -- 3
-------------- -------------- -------------- --------------
Net income 665 263 1,110 484
-------------- -------------- -------------- --------------
Net income
attributable
to
noncontrolling
interests 158 74 265 136
-------------- -------------- -------------- --------------
Net income
attributable to
common
shareholders $ 507 $ 189 $ 845 $ 348
============== ============== ============== ==============
Earnings per
common share
Basic net
income per
share from
continuing
operations $ 1.46 $ 0.58 $ 2.43 $ 1.07
Basic net loss
per share from
discontinued
operations $ -- $ (0.00) $ -- $ (0.01)
-------------- -------------- -------------- --------------
Basic net
income per
share $ 1.46 $ 0.58 $ 2.43 $ 1.07
============== ============== ============== ==============
Diluted net
income per
share from
continuing
operations $ 1.45 $ 0.58 $ 2.42 $ 1.07
Diluted net
loss per share
from
discontinued
operations $ -- $ (0.00) $ -- $ (0.01)
-------------- -------------- -------------- --------------
Diluted net
income per
share $ 1.45 $ 0.57 $ 2.42 $ 1.06
============== ============== ============== ==============
Weighted average
shares outstanding
(in millions):
Basic 348 328 347 327
Diluted 460 457 459 456
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions of U.S. dollars, except share data, Unaudited)
As of
---------------------------------------
June 30, 2026 December 31, 2025
-------------------- -----------------
ASSETS
-----------------------------------
Current assets:
Cash and cash equivalents $ 1,063 $ 1,163
Accounts and notes receivable,
net of allowance of $43 and
$54, respectively 800 794
Inventories, net 224 205
Prepaids and other current
assets 256 179
Assets held for sale -
discontinued operations -- 489
-------------------- -----------------
Total current assets 2,343 2,830
Property and equipment, net of
accumulated depreciation and
amortization of $1,299 and $1,245,
respectively 2,230 2,303
Operating lease assets, net 1,964 1,961
Intangible assets, net 10,945 11,190
Goodwill 6,183 6,306
Other assets, net 1,357 1,025
-------------------- -----------------
Total assets $ 25,022 $ 25,615
==================== =================
LIABILITIES AND SHAREHOLDERS'
EQUITY
-----------------------------------
Current liabilities:
Accounts and drafts payable $ 884 $ 866
Other accrued liabilities 1,165 1,271
Gift card liability 183 249
Current portion of long-term
debt and finance leases 82 68
Liabilities held for sale -
discontinued operations -- 437
-------------------- -----------------
Total current liabilities 2,314 2,891
Long-term debt, net of current
portion 13,206 13,250
Finance leases, net of current
portion 243 261
Operating lease liabilities, net of
current portion 1,908 1,900
Other liabilities, net 900 1,034
Deferred income taxes, net 1,056 1,120
-------------------- -----------------
Total liabilities 19,627 20,456
-------------------- -----------------
Shareholders' equity:
Common shares, no par value;
unlimited shares authorized at
June 30, 2026 and December 31,
2025; 349,205,651 shares issued
and outstanding at June 30,
2026; 346,323,165 shares issued
and outstanding at December 31,
2025 2,870 2,859
Retained earnings 2,179 1,795
Accumulated other comprehensive
income (loss) (1,199) (1,020)
-------------------- -----------------
Total Restaurant Brands
International Inc.
shareholders' equity 3,850 3,634
Noncontrolling interests 1,545 1,525
-------------------- -----------------
Total shareholders' equity 5,395 5,159
-------------------- -----------------
Total liabilities and
shareholders' equity $ 25,022 $ 25,615
==================== =================
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars, Unaudited)
Six Months Ended June 30,
------------------------------------------
2026 2025
-------------------- --------------------
Cash flows from operating
activities:
Net income $ 1,110 $ 484
Net loss from discontinued
operations -- 3
-------------------- --------------------
Net income from continuing
operations 1,110 487
Depreciation and amortization 155 148
Amortization of deferred
financing costs and debt
issuance discount 12 13
(Income) loss from equity
method investments (4) (10)
(Gain) loss on remeasurement
of foreign denominated
transactions (50) 207
Net (gains) losses on
derivatives (82) (102)
Share-based compensation and
non-cash incentive
compensation expense 70 81
Deferred income taxes (215) 8
Other non-cash adjustments,
net (7) 31
Changes in current assets and
liabilities, excluding
acquisitions and
dispositions:
Accounts and notes
receivable (24) (72)
Inventories and prepaids
and other current assets (35) (30)
Accounts and drafts
payable 42 (6)
Other accrued liabilities
and gift card liability (184) (155)
Tenant inducements paid to
franchisees (18) (14)
Changes in other long-term
assets and liabilities (13) (19)
-------------------- --------------------
Net cash provided
by operating
activities from
continuing
operations 757 567
-------------------- --------------------
Cash flows from investing
activities:
Payments for additions of
property and equipment (109) (102)
Net proceeds from disposal of
assets, restaurant closures,
and refranchisings 33 12
Net payments for acquisition
of franchised restaurants,
net of cash acquired -- (152)
Settlement/sale of
derivatives, net 28 40
Other investing activities,
net (12) --
-------------------- --------------------
Net cash used for
investing
activities from
continuing
operations (60) (202)
-------------------- --------------------
Cash flows from financing
activities:
Repayments of long-term debt
and finance leases (57) (66)
Payment of common share
dividends and Partnership
exchangeable unit
distributions (579) (544)
Repurchase of common shares (170) --
Proceeds from stock option
exercises 35 20
Proceeds from derivatives 19 34
Other financing activities,
net (1) 1
-------------------- --------------------
Net cash used for
financing
activities from
continuing
operations (753) (555)
-------------------- --------------------
Net cash used for
discontinued operations (27) (85)
Effect of exchange rates on
cash and cash equivalents (8) 19
-------------------- --------------------
(Decrease) increase in cash
and cash equivalents,
including cash classified as
assets held for sale -
discontinued operations (91) (256)
Increase in cash classified
as assets held for sale -
discontinued operations (9) (52)
-------------------- --------------------
(Decrease) increase in cash
and cash equivalents (100) (308)
Cash and cash equivalents at
beginning of period 1,163 1,334
-------------------- --------------------
Cash and cash equivalents at
end of period $ 1,063 $ 1,026
==================== ====================
Supplemental cash flow
disclosures:
Interest paid $ 329 $ 360
Income taxes paid, net $ 229 $ 285
Accruals for additions of
property and equipment $ 20 $ 22
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Key Operating Metrics and Non-GAAP Financial Measures
Key Operating Metrics
Key performance indicators ("KPIs") are shown for RBI's Five Franchisor Segments. The KPIs for the Carrols Burger King restaurants are included in the BK segment and KPIs for the PLK China, BK China, and FHS Brazil restaurants are included in the INTL segment.
-- System-wide Sales Growth refers to the percentage change in sales at all
franchised restaurants and company restaurants (referred to as
System-wide Sales) in one period from the same period in the prior year
on a constant currency basis, which means the results exclude the effect
of foreign currency translation ("FX Impact"). We calculate the FX Impact
by translating prior year results at current year monthly average
exchange rates. System-wide Sales is reported on a nominal basis.
-- Comparable Sales refers to the percentage change in restaurant sales in
one period from the same prior year period on a constant currency basis
for restaurants that have been open for an initial consecutive period,
typically at least 13 months. Additionally, if a restaurant is closed for
a significant portion of a month, the restaurant is excluded from the
monthly Comparable Sales calculation.
-- Unless otherwise stated, System-wide Sales Growth, System-wide Sales and
Comparable Sales are presented on a system-wide basis, which means they
include franchised restaurants and company restaurants. System-wide
results are driven by our franchised restaurants, as over 95% of
system-wide restaurants are franchised. Franchise sales represent sales
at all franchised restaurants and are revenues to our franchisees. We do
not record franchise sales as revenues; however, our royalty revenues and
advertising fund contributions are calculated based on a percentage of
franchise sales.
-- Net Restaurant Growth refers to the net change in restaurant count
(openings, net of permanent closures) over a trailing twelve month period,
divided by the restaurant count at the beginning of the trailing twelve
month period. In determining whether a restaurant meets our definition of
a restaurant that will be included in our Net Restaurant Growth, we
consider factors such as scope of operations, format and image, separate
franchise agreement, and minimum sales thresholds. We refer to
restaurants that do not meet our definition as "alternative formats" and
we believe these are helpful to build brand awareness, test new concepts
and provide convenience in certain markets.
-- Total Capex and Cash Inducements refers to the sum of payments for
additions to property and equipment, tenant inducements paid to
franchisees, other cash inducements (included in changes in other
long-term assets and liabilities), and increase (decrease) in accruals
for additions to property and equipment.
These metrics are important indicators of the overall direction of our business, including trends in sales and the effectiveness of each brand's marketing, operations and growth initiatives. Total Capex and Cash Inducements is an indicator of the capital intensity of our business.
Non-GAAP Financial Measures
Below, we define non-GAAP financial measures, provide a reconciliation of each measure to the most directly comparable financial measure calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), and discuss the reasons management uses this information and why we believe this information may be useful to investors. These measures do not have standardized meanings under GAAP and may differ from similarly captioned measures of other companies in our industry. We believe that these non-GAAP measures are useful to investors in assessing our operating performance and liquidity. By disclosing these non-GAAP measures, we intend to provide investors with a consistent comparison of our operating results and trends for the periods presented.
AOI represents Income from operations adjusted to exclude (i) franchise agreement and reacquired franchise right intangible asset amortization as a result of acquisition accounting, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net and, (iv) expenses from non-recurring projects and non-operating activities. For the periods referenced, expenses from non-recurring projects and non-operating activities included (i) non-recurring fees and expenses, consisting primarily of professional fees, compensation-related expenses, and integration costs, incurred in connection with (a) the Carrols Acquisition, the PLK China Acquisition, and the BK China Transactions, and (b) the anticipated refranchising of restaurants held in the RH segment, primarily those acquired in the Carrols Acquisition, in connection with the planned sunset of the RH segment ("RH and BK China Transaction costs") and (ii) non-operating costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements as well as services related to significant tax reform legislation and regulations ("Corporate restructuring and advisory fees"). Management believes that these types of expenses are either not related to our underlying profitability drivers or not likely to reoccur in the foreseeable future, and the varied timing, size, and nature of these projects may cause volatility in our results unrelated to the performance of our core business that does not reflect trends of our core operations. AOI is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items. AOI, as defined above, also represents our measure of segment income for each of our operating segments.
Adjusted EBITDA is defined as earnings (net income or loss from continuing operations) before interest expense, net, (gain) loss on early extinguishment of debt, income tax (benefit) expense from continuing operations, and depreciation and amortization excluding (i) the non-cash impact of share-based compensation and non-cash incentive compensation expense, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net, and (iv) income or expense from non-recurring projects and non-operating activities (as described above) and is used by management to measure leverage.
Segment G&A is defined as general and administrative expenses excluding RH and BK China Transaction costs and Corporate restructuring and advisory fees. Segment G&A (excluding RH) is defined as Segment G&A for our Five Franchisor Segments.
Segment F&P Expenses is defined as franchise and property expenses excluding franchise agreement amortization ("FAA") and reacquired franchise rights amortization as a result of acquisition accounting.
Adjusted Net Income is defined as Net income from continuing operations excluding (i) franchise agreement and reacquired franchise right intangible asset amortization as a result of acquisition accounting, (ii) amortization of deferred financing costs and debt issuance discount, (iii) loss on early extinguishment of debt and interest expense, which represents non-cash interest expense related to amounts reclassified from accumulated comprehensive income (loss) into interest expense in connection with restructured interest rate swaps, (iv) (income) loss from equity method investments, net of cash distributions received from equity method investments, (v) other operating expenses (income), net, and (vi) income or expense from non-recurring projects and non-operating activities (as described above).
Adjusted Interest Expense, net is defined as interest expense, net less (i) amortization of deferred financing costs and debt issuance discount and (ii) non-cash interest expense related to amounts reclassified from accumulated comprehensive income (loss) into interest expense in connection with restructured interest rate swaps.
Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted average diluted shares outstanding of RBI during the reporting period. Adjusted Net Income and Adjusted Diluted EPS are used by management to evaluate the operating performance of the business, excluding certain non-cash and other specifically identified items that management believes are not relevant to management's assessment of operating performance.
Net Debt is defined as Total debt less cash and cash equivalents. Total debt is defined as long-term debt, net of current portion plus (i) Finance leases, net of current portion, (ii) Current portion of long-term debt and finance leases and (iii) Unamortized deferred financing costs and deferred issue discount. Net Debt is used by management to evaluate RBI's liquidity. We believe this measure is an important indicator of RBI's ability to service its debt obligations.
Net Leverage is defined as Net Debt divided by Adjusted EBITDA. This metric is an operating performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.
Revenue growth, Income from Operations growth, Adjusted Operating Income growth, Net Income growth, Adjusted EBITDA growth, Adjusted Net Income growth and Adjusted Diluted EPS growth on an organic basis, are non-GAAP measures that exclude the impact of FX movements and the results of our RH segment. With respect to Adjusted Diluted EPS, growth on an organic basis also excludes the impact of incremental debt incurred as part of the Carrols transaction. Management believes that organic growth is an important metric for measuring the operating performance of our business as it helps identify underlying business trends, without distortion from the effects of FX movements and the RH segment given RBI's plans to refranchise the vast majority of the Carrols Burger King restaurants and to find a new partner for PLK China and new investors for FHS Brazil and sunset the RH segment. We calculate the impact of FX movements by translating prior year results at current year monthly average exchange rates.
Free Cash Flow ("FCF") is the total of Net cash provided by operating activities minus Payments for property and equipment. FCF is a liquidity measure used by management as one factor in determining the amount of cash that is available for working capital needs or other uses of cash and it does not represent residual cash flows available for discretionary expenditures.
We are not currently able to reconcile our forward-looking non-GAAP measures because we cannot predict the timing and amounts of certain important components of estimated operating income and general and administrative expenses, including the impact of equity method investments and other operating expenses or income from non-recurring projects and non-operating activities, which could significantly impact GAAP results.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures | Organic Growth
Three Months Ended June 30, 2026
(In millions of U.S. dollars, except per share data, Unaudited)
Three Months Ended
June 30, Variance RH Impact FX Impact Organic Growth
---------------------- ------------------- ---------- ----------- -------------------
2026 2025 $ % $ $ $ %
---------- ---------- ---------- ------- ---------- ----------- ---------- -------
Revenue
--------------
TH $ 1,137 $ 1,083 $ 54 4.9 % $ -- $ (1) $ 54 5.0 %
BK 397 388 9 2.3 % -- -- 9 2.3 %
PLK 199 210 (11) (5.4) % -- -- (11) (5.4) %
FHS 62 59 3 4.7 % -- -- 3 4.7 %
INTL 274 250 25 9.8 % -- 4 20 8.1 %
RH 506 469 36 7.7 % 36 -- -- -- %
Elimination of
intersegment
revenues
(a) (55) (49) (5) 11.0 % (5) -- -- -- %
---------- ---------- ---------- ------- ---------- ----------- ---------- -------
Total Revenues $ 2,520 $ 2,410 $ 109 4.5 % $ 31 $ 3 $ 75 3.8 %
========== ========== ========== ======= ========== =========== ========== =======
Income from
Operations $ 716 $ 483 $ 233 48.4 % $ 10 $ (2) $ 225 47.0 %
Net Income from
Continuing
Operations $ 665 $ 264 $ 401 152.1 % $ 7 $ (2) $ 396 151.6 %
Adjusted
Operating
Income
--------------
TH $ 287 $ 278 $ 9 3.2 % $ -- $ (1) $ 10 3.5 %
BK 137 121 16 13.2 % -- -- 16 13.3 %
PLK 63 66 (4) (5.4) % -- -- (3) (5.3) %
FHS 17 15 2 11.4 % -- -- 2 11.4 %
INTL 194 172 23 13.2 % -- 2 20 11.7 %
RH 17 16 -- 3.0 % -- -- -- -- %
---------- ---------- ---------- ------- ---------- ----------- ---------- -------
Adjusted
Operating
Income $ 715 $ 668 $ 46 6.9 % $ -- $ 2 $ 44 6.7 %
========== ========== ========== ======= ========== =========== ========== =======
Adjusted EBITDA $ 810 $ 762 $ 48 6.3 % $ 3 $ 2 $ 43 5.9 %
Adjusted Net
Income $ 490 $ 432 $ 59 13.6 % $ 1 $ 1 $ 56 13.0 %
Adjusted
Diluted
Earnings per
Share $ 1.07 $ 0.94 $ 0.12 12.9 % $ -- $ -- $ 0.12 12.3 %
(a) Represents elimination of intersegment revenues that consists of
royalties, property and advertising and other services revenue recognized
by BK and INTL from intersegment transactions with RH.
Note: Totals, variances, and percentage changes may not recalculate due to
rounding.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures | Organic Growth
Six Months Ended June 30, 2026
(In millions of U.S. dollars, except per share data, Unaudited)
Six Months Ended
June 30, Variance RH Impact FX Impact Organic Growth
---------------------- -------------------- ---------- ---------- -------------------
2026 2025 $ % $ $ $ %
---------- ---------- ---------- -------- ---------- ---------- ---------- -------
Revenue
--------------
TH $ 2,134 $ 1,987 $ 147 7.4 % $ -- $ 36 $ 111 5.5 %
BK 762 744 18 2.4 % -- 1 17 2.3 %
PLK 389 404 (15) (3.7) % -- -- (15) (3.8) %
FHS 121 113 9 7.7 % -- -- 9 7.5 %
INTL 528 468 60 12.9 % -- 19 42 8.6 %
RH 953 901 52 5.8 % 52 -- -- -- %
Elimination of
intersegment
revenues
(a) (103) (97) (6) 6.4 % (6) -- -- -- %
---------- ---------- ---------- -------- ---------- ---------- ---------- -------
Total Revenues $ 4,784 $ 4,519 $ 265 5.9 % $ 46 $ 55 $ 163 4.3 %
========== ========== ========== ======== ========== =======
Income from
Operations $ 1,322 $ 918 $ 404 44.0 % $ -- $ 10 $ 394 42.6 %
Net Income from
Continuing
Operations $ 1,110 $ 487 $ 623 128.0 % $ (4) $ 8 $ 619 125.1 %
Adjusted
Operating
Income
--------------
TH $ 516 $ 499 $ 17 3.5 % $ -- $ 9 $ 9 1.7 %
BK 252 224 28 12.6 % -- -- 28 12.6 %
PLK 119 126 (7) (5.2) % -- -- (7) (5.4) %
FHS 31 26 5 17.8 % -- -- 5 17.6 %
INTL 390 310 80 25.8 % -- 11 69 21.5 %
RH 16 23 (7) (31.1) % (7) -- -- -- %
---------- ---------- ---------- -------- ---------- ---------- ---------- -------
Adjusted
Operating
Income $ 1,324 $ 1,208 $ 116 9.6 % $ (7) $ 20 $ 104 8.5 %
========== ========== ========== ======== ========== ========== ========== =======
Adjusted EBITDA $ 1,517 $ 1,404 $ 112 8.0 % $ 3 $ 22 $ 87 6.3 %
Adjusted Net
Income $ 886 $ 775 $ 111 14.4 % $ (5) $ 17 $ 99 12.5 %
Adjusted
Diluted
Earnings per
Share $ 1.93 $ 1.70 $ 0.23 13.7 % $ (0.01) $ 0.04 $ 0.20 11.8 %
(a) Represents elimination of intersegment revenues that consists of
royalties, property and advertising and other services revenue recognized
by BK and INTL from intersegment transactions with RH.
Note: Totals, variances, and percentage changes may not recalculate due to
rounding.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Reconciliation of Net Leverage, Free Cash Flow, and Capex and Cash Inducements
(In millions of U.S. dollars, except ratio, Unaudited)
As of
--------------------------------------------------
Net Leverage June 30, 2026 June 30, 2025
--------------------- ------------------------ ------------------------
Long-term debt, net
of current portion $ 13,206 $ 13,428
Finance leases, net
of current portion 243 282
Current portion of
long-term debt and
finance leases 82 221
Unamortized deferred
financing costs and
deferred issuance
discount 78 104
------------------------ ------------------------
Total debt 13,609 14,035
Cash and cash
equivalents 1,063 1,026
Net debt 12,546 13,009
LTM Net Income from
continuing
operations 1,824 1,205
------------------------ ------------------------
Net Income from
continuing operations
Net leverage 6.9x 10.8x
======================== ========================
LTM Adjusted EBITDA 3,083 2,840
------------------------ ------------------------
Net Leverage 4.1x 4.6x
======================== ========================
Free Cash Twelve Months Ended Twelve Months Ended
Flow Six Months Ended June 30, December 31, June 30,
------------- ---------------------------------- ------------------------ ------------------------
2026 2025 2024 2025 2024 2026 2025
---------- ---------- ---------- ----------- ----------- ----------- -----------
Calculation: A B C D E A + D - B B + E - C
---------- ---------- ---------- ----------- ----------- ----------- -----------
Net cash
provided by
operating
activities $ 757 $ 567 $ 482 $ 1,714 $ 1,503 $ 1,904 $ 1,588
Payments for
additions
of property
and
equipment (109) (102) (69) (265) (201) (272) (234)
---------- ---------- ---------- ----------- ----------- ----------- -----------
Free Cash
Flow $ 648 $ 465 $ 413 $ 1,449 $ 1,302 $ 1,632 $ 1,354
========== ========== ========== =========== =========== =========== ===========
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
Capex and Cash
Inducements 2026 2025 2026 2025
-------------- ------------- ------------- ------------- -------------
Payments for
additions of
property and
equipment $ 51 $ 38 $ 109 $ 102
Tenant
inducements
paid to
franchisees 10 8 18 14
Other cash
inducements
(incl. in
changes in
other
long-term
assets and
liabilities) 9 19 21 28
Increase
(decrease)
in accruals
for
additions to
property and
equipment (8) 3 (34) (29)
------------- ------------- ------------- -------------
Total Capex
and Cash
Inducements $ 62 $ 68 $ 114 $ 115
============= ============= ============= =============
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures| Reconciliations
(In millions of U.S. dollars, except per share data, Unaudited)
Net income from continuing operations to Income from Operations to Adjusted Operating Income to Adjusted EBITDA
Three Months Twelve Months Ended Twelve Months
Ended June 30, Six Months Ended June 30, December 31, Ended June 30,
----------------- ------------------------------- ------------------------ ------------------
2026 2025 2026 2025 2024 2025 2024 2026 2025
-------- ------- --------- --------- --------- ------------ ---------- -------- --------
A + D - B + E -
A B C D E B C
-------- ------- --------- --------- --------- ------------ ---------- -------- --------
Net income from
continuing
operations $ 665 $ 264 $ 1,110 $ 487 $ 727 $ 1,201 $ 1,445 $ 1,824 $ 1,205
Income tax
(benefit)
expense from
continuing
operations(3) (73) 87 (35) 169 153 483 364 279 380
Loss on early
extinguishment
of debt -- -- -- -- 32 2 33 2 1
Interest
expense, net 124 132 247 262 295 516 577 501 544
-------- ------- --------- --------- --------- ------------ ---------- -------- --------
Income from
operations 716 483 1,322 918 1,207 2,202 2,419 2,606 2,130
Franchise
agreement and
reacquired
franchise
rights
amortization
(FAA) 16 17 32 33 19 65 53 64 67
RH and BK China
Transaction
costs 3 16 9 22 13 37 22 24 31
Corporate
restructuring
and advisory
fees 2 5 4 6 8 14 20 12 18
Impact of
equity method
investments(2) 3 (1) 4 (3) (64) 5 (53) 12 8
Other operating
expenses
(income), net (26) 149 (47) 232 (11) 261 (59) (18) 184
-------- ------- --------- --------- --------- ------------ ---------- -------- --------
Adjusted
Operating
Income 715 668 $ 1,324 $ 1,208 $ 1,172 $ 2,584 $ 2,402 $ 2,700 $ 2,438
======== ======= ========= ========= ========= ============ ========== ======== ========
Depreciation
and
amortization,
excluding FAA 61 61 123 116 89 236 210 243 237
Share-based
compensation
and non-cash
incentive
compensation
expense(1) 35 33 70 81 87 151 172 139 166
-------- ------- --------- --------- --------- ------------ ---------- -------- --------
Adjusted EBITDA 810 762 $ 1,517 $ 1,404 $ 1,348 $ 2,970 $ 2,784 $ 3,083 $ 2,840
======== ======= ========= ========= ========= ============ ========== ======== ========
Net income from continuing operations to Adjusted Net Income and Adjusted Diluted EPS
Three Months Ended June 30, Six Months Ended June 30,
---------------------------------- ----------------------------------
2026 2025 2026 2025
---------------- ---------------- ---------------- ----------------
Net income from
continuing
operations $ 665 $ 264 $ 1,110 $ 487
Income tax
(benefit)
expense from
continuing
operations(3) (73) 87 (35) 169
---------------- ---------------- ---------------- ----------------
Income from
continuing
operations
before income
taxes 592 351 1,075 656
Adjustments:
Franchise
agreement and
reacquired
franchise
rights
amortization 16 17 32 33
Amortization of
deferred
financing
costs and debt
issuance
discount 6 7 12 13
Interest
expense and
loss on
extinguished
debt(4) (7) (6) (14) (10)
RH and BK China
Transaction
costs 3 16 9 22
Corporate
restructuring
and advisory
fees 2 5 4 6
Impact of
equity method
investments(2) 3 (1) 4 (3)
Other operating
expenses
(income), net (26) 149 (47) 232
---------------- ---------------- ---------------- ----------------
Total
adjustments (3) 187 -- 293
Adjusted income
before income
taxes 589 538 1,075 949
---------------- ---------------- ---------------- ----------------
Adjusted income
tax
expense(3)(5) 99 106 189 174
---------------- ---------------- ---------------- ----------------
Adjusted net
income $ 490 $ 432 $ 886 $ 775
================ ================ ================ ================
Adjusted diluted
earnings per
share $ 1.07 $ 0.94 $ 1.93 $ 1.70
Weighted average
diluted shares
outstanding (in
millions) 460 457 459 456
Note: Totals may not recalculate due to rounding.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Footnotes to Reconciliation Tables
(1) Represents share-based compensation expense associated with equity awards
for the periods indicated; also includes the portion of annual non-cash
incentive compensation expense that eligible employees elected to receive
or are expected to elect to receive as common equity in lieu of their
2026 and 2025 cash bonus, respectively.
(2) Represents (i) (income) loss from equity method investments and (ii) cash
distributions received from our equity method investments. Cash
distributions received from our equity method investments are included in
Adjusted Operating Income which is our measure of segment income.
(3) The change in our effective tax rate was primarily due to discrete tax
benefits resulting from the movements in net deferred taxes in connection
with intra-group reorganizations, partially offset by the impact of the
administrative guidance issued by the Organization of Economic
Cooperation and Development ("OECD") in 2025. The reorganization has a
favorable impact to the full year effective tax rate but does not impact
the adjusted effective tax rate.
(4) Represents loss on early extinguishment of debt and interest expense.
Interest expense included in this amount represents non-cash interest
expense related to amounts reclassified from accumulated comprehensive
income (loss) into interest expense in connection with restructured
interest rate swaps.
(5) Adjusted income tax expense includes the tax impact of the non-GAAP
adjustments and is calculated using our statutory tax rate in the
jurisdiction in which the costs were incurred.
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SOURCE Restaurant Brands International Inc.
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