Consolidated System-wide Sales grow 6.2% year-over-year, including 9.0% in International
Global Comparable Sales of 3.8%, including 8.4% at BK US and 3.9% at International
RBI returns $1.3 billion of capital to shareholders year to date through dividends and share repurchases
RBI remains on track for 8% organic Adjusted Operating Income growth in 2026
MIAMI, Oct. 29, 2026 /PRNewswire/ -- Restaurant Brands International Inc. ("RBI") $(QSR)$ (TSX: QSR) (TSX: QSP) today reported financial results for the third quarter ended September 30, 2026. Josh Kobza, Chief Executive Officer of RBI commented, "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."
Consolidated Operational and Financial Highlights
(in US$ millions, except per share and ratio data, unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- --------------------------------
Operational
Highlights 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
System-wide
Sales
Growth (a) 6.2 % 6.9 % 6.3 % 5.1 %
System-wide
Sales (a) $ 12,972 $ 12,282 $ 37,185 $ 34,631
Comparable
Sales 3.8 % 4.0 % 3.6 % 2.2 %
Net
Restaurant
Growth 3.0 % 2.8 % 3.0 % 2.8 %
System
Restaurant
Count at
Period End 33,401 32,423 33,401 32,423
GAAP
Financials
Total
Revenues $ 2,525 $ 2,449 $ 7,309 $ 6,968
Income from
Operations $ 696 $ 663 $ 2,018 $ 1,581
Income from
Operations
Growth 5.0 % 14.8 % 27.7 % (11.4) %
Net Income
from
Continuing
Operations $ 704 $ 440 $ 1,814 $ 927
Diluted
Earnings
per Share
from
Continuing
Operations $ 1.54 $ 0.96 $ 3.95 $ 2.03
Financial
Highlights
(b)
Adjusted
Operating
Income
(AOI) $ 737 $ 702 $ 2,061 $ 1,910
Organic AOI
Growth 6.7 % 8.8 % 7.8 % 5.9 %
Adjusted
EBITDA $ 829 $ 794 $ 2,345 $ 2,198
Adjusted
Diluted
Earnings
per Share
(Adj. EPS) $ 1.10 $ 1.03 $ 3.03 $ 2.73
Nominal Adj.
EPS Growth 6.9 % 10.7 % 11.1 % 8.1 %
Organic Adj.
EPS Growth 8.6 % 11.9 % 10.6 % 10.8 %
Net Leverage 4.0x 4.4x 4.0x 4.4x
(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 (i) Burger King restaurants acquired in our acquisition of Carrols Restaurant Group Inc. (the "Carrols Acquisition"), (ii) restaurants acquired in our acquisition of Popeyes China ("PLK China") ("PLK China Acquisition"), and (iii) 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 new investors for PLK China and 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 $350 million of primary capital into the BK China JV. Following the transaction, we deconsolidated BK China and began accounting for our remaining 17% equity interest in the BK China JV under the equity method of accounting and recognizing franchise revenue, primarily related to royalties, in our INTL segment. We refer to the acquisition of BK China and the subsequent establishment of the BK China JV collectively as the "BK China Transactions."
2026 Convention Timing Impact on Franchise and Property Results
In 2025, PLK and BK INTL hosted conventions in Q2, BK and FHS hosted conventions in Q3, and TH did not host a convention. In 2026, PLK and FHS hosted conventions in Q3, TH and BK will host conventions in Q4, and BK INTL will not host a convention. Convention-related revenues and expenses are recognized in each segment's Franchise and property revenues and Segment F&P expenses, respectively, and have an immaterial net AOI impact.
Supplemental Disclosures
Please review the Trending Schedules posted on the RBI Investor Relations webpage under "Financial Information" for additional disclosures, including:
-- Home Market and International KPIs by Brand and Company Restaurant Count
by Segment;
-- Segment Results with Disaggregated Franchise and Property Revenues
(Royalties, Property Revenue and Franchise Fees and Other Revenue);
-- Intersegment Revenue and Expense Eliminations;
-- Burger King US "Reclaim the Flame" Expenditures by Quarter; and
-- RH Burger King Carrols Restaurant-Level EBITDA Margins.
TH Segment Results Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- --------------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
System-wide Sales
Growth (a) 2.0 % 4.8 % 1.6 % 3.0 %
System-wide Sales
(a) $ 2,039 $ 2,029 $ 5,780 $ 5,655
Comparable Sales 1.5 % 4.2 % 1.0 % 2.7 %
Comparable Sales
- Canada 1.8 % 4.2 % 1.1 % 2.8 %
Net Restaurant
Growth 1.0 % 0.6 % 1.0 % 0.6 %
System Restaurant
Count at Period
End 4,579 4,532 4,579 4,532
Supply chain sales $ 780 $ 769 $ 2,254 $ 2,111
Company restaurant
sales $ 11 $ 12 $ 31 $ 34
Franchise and
property
revenues $ 266 $ 264 $ 761 $ 744
Advertising
revenues and
other services $ 79 $ 80 $ 224 $ 222
--------------- --------------- --------------- ---------------
Total
revenues $ 1,136 $ 1,125 $ 3,270 $ 3,112
Supply chain cost
of sales $ 618 $ 619 $ 1,817 $ 1,704
Company restaurant
expenses $ 10 $ 11 $ 28 $ 30
Segment F&P
expenses $ 86 $ 86 $ 254 $ 246
Advertising
expenses and
other services $ 77 $ 77 $ 249 $ 236
Segment G&A $ 32 $ 33 $ 100 $ 104
Adjustments:
Cash
distributions
received from
equity method
investments $ 4 $ 4 $ 11 $ 11
--------------- --------------- --------------- ---------------
Adjusted Operating
Income $ 317 $ 304 $ 833 $ 803
(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 third quarter, the increase in Total revenues was driven by higher Supply chain sales primarily due to increases in equipment sales to franchisees and commodity prices. The increase in Total revenues was also driven by increased System-wide Sales. Results also reflect an unfavorable FX Impact of $16 million. Excluding the FX Impact, Total revenues increased by $27 million.
The increase in Adjusted Operating Income was primarily driven by tariff refunds and increased System-wide Sales. Results also reflect an unfavorable FX Impact of $4 million. Excluding the FX Impact, Adjusted Operating Income increased by $17 million.
BK Segment Results Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- --------------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
System-wide Sales
Growth 7.6 % 2.3 % 7.1 % 0.6 %
System-wide Sales $ 3,178 $ 2,956 $ 9,224 $ 8,608
Comparable Sales 8.3 % 3.1 % 7.6 % 1.1 %
Comparable Sales
- US 8.4 % 3.2 % 7.6 % 1.2 %
Net Restaurant
Growth (0.9) % (1.1) % (0.9) % (1.1) %
System Restaurant
Count at Period
End 6,979 7,043 6,979 7,043
Company restaurant
sales $ 43 $ 62 $ 133 $ 183
Franchise and
property revenues
(a) $ 199 $ 187 $ 575 $ 537
Advertising
revenues and
other services
(b) $ 154 $ 138 $ 450 $ 411
--------------- --------------- --------------- ---------------
Total
revenues $ 396 $ 387 $ 1,157 $ 1,131
Company restaurant
expenses $ 38 $ 59 $ 120 $ 170
Segment F&P
expenses $ 33 $ 35 $ 99 $ 98
Advertising
expenses and
other services $ 156 $ 141 $ 453 $ 419
Segment G&A $ 33 $ 30 $ 97 $ 97
--------------- --------------- --------------- ---------------
Adjusted Operating
Income $ 136 $ 123 $ 388 $ 347
(a) Franchise and property revenues include intersegment revenues with RH
consisting of royalties and rent of $29 million and $86 million during
the three and nine months ended September 30, 2026, respectively, and $28
million and $83 million during three and nine months ended September 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 $22
million and $67 million during the three and nine months ended September
30, 2026, respectively, and $21 million and $63 million during the three
and nine months ended September 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 September 30, 2026, we have funded $198 million out of up to $550 million planned toward the Royal Reset investments.
Third Quarter 2026 Results
The increase in Total revenues was primarily driven by the increase in Comparable Sales, partially offset by the net impact of refranchisings.
The increase in Adjusted Operating Income was primarily driven by the increase in Comparable Sales.
PLK Segment
Results Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
System-wide Sales
Growth (1.0) % 0.7 % (2.7) % 0.0 %
System-wide Sales $ 1,503 $ 1,519 $ 4,453 $ 4,571
Comparable Sales (1.8) % (2.4) % (4.5) % (2.6) %
Comparable Sales
- US (2.2) % (2.0) % (4.6) % (2.3) %
Net Restaurant
Growth 0.0 % 2.2 % 0.0 % 2.2 %
System Restaurant
Count at Period
End 3,542 3,541 3,542 3,541
Company restaurant
sales $ 55 $ 44 $ 145 $ 136
Franchise and
property
revenues $ 82 $ 81 $ 237 $ 245
Advertising
revenues and
other services $ 68 $ 76 $ 211 $ 223
--------------- --------------- --------------- ---------------
Total
revenues $ 204 $ 201 $ 593 $ 605
Company restaurant
expenses $ 49 $ 39 $ 128 $ 118
Segment F&P
expenses $ 8 $ 3 $ 14 $ 10
Advertising
expenses and
other services $ 71 $ 79 $ 220 $ 230
Segment G&A $ 19 $ 17 $ 55 $ 57
--------------- --------------- --------------- ---------------
Adjusted Operating
Income $ 58 $ 63 $ 177 $ 188
For the third quarter, the increase in Total revenues was primarily driven by higher Company restaurant sales due to restaurants acquired during the period, partially offset by lower Advertising revenues and other services due primarily to a decline in advertising fund contributions.
The decrease in Adjusted Operating Income was primarily driven by a decline in Comparable Sales and an increase in Segment G&A, primarily driven by higher compensation-related expenses, partially offset by higher Company restaurant sales.
FHS Segment
Results Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- --------------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
System-wide Sales
Growth 8.3 % 10.7 % 7.7 % 8.1 %
System-wide Sales $ 360 $ 332 $ 1,068 $ 991
Comparable Sales 1.5 % 2.6 % 0.5 % 0.7 %
Comparable Sales
- US 2.0 % 2.5 % 1.0 % 0.5 %
Net Restaurant
Growth 7.8 % 7.7 % 7.8 % 7.7 %
System Restaurant
Count at Period
End 1,509 1,400 1,509 1,400
Company restaurant
sales $ 12 $ 11 $ 35 $ 33
Franchise and
property
revenues $ 32 $ 30 $ 90 $ 84
Advertising
revenues and
other services $ 21 $ 18 $ 61 $ 55
--------------- --------------- --------------- ---------------
Total
revenues $ 65 $ 60 $ 186 $ 172
Company restaurant
expenses $ 10 $ 9 $ 30 $ 28
Segment F&P
expenses $ 4 $ 5 $ 8 $ 8
Advertising
expenses and
other services $ 22 $ 19 $ 64 $ 57
Segment G&A $ 12 $ 12 $ 38 $ 39
--------------- --------------- --------------- ---------------
Adjusted Operating
Income $ 16 $ 14 $ 47 $ 41
For the third quarter, the increases in Total revenues and Adjusted Operating Income were primarily driven by the increase in restaurant count.
INTL Segment
Results Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- --------------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
System-wide Sales
Growth (a) 9.0 % 12.1 % 10.2 % 10.3 %
System-wide Sales
(a) $ 5,893 $ 5,447 $ 16,662 $ 14,806
Comparable Sales 3.9 % 6.5 % 5.0 % 4.5 %
Comparable Sales
- INTL - Burger
King 3.8 % 6.4 % 4.8 % 4.5 %
Net Restaurant
Growth 5.6 % 5.1 % 5.6 % 5.1 %
System Restaurant
Count at Period
End 16,792 15,907 16,792 15,907
Franchise and
property
revenues $ 266 $ 245 $ 754 $ 673
Advertising
revenues and
other services $ 23 $ 22 $ 63 $ 62
--------------- --------------- --------------- ---------------
Total
revenues $ 289 $ 268 $ 817 $ 735
Segment F&P
expenses $ 6 $ 7 $ (4) $ 21
Advertising
expenses and
other services $ 25 $ 25 $ 70 $ 70
Segment G&A $ 53 $ 47 $ 155 $ 145
--------------- --------------- --------------- ---------------
Adjusted Operating
Income $ 205 $ 189 $ 596 $ 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 third quarter, the increase in Total revenues was primarily driven by higher royalty revenues from Burger King and Popeyes restaurants resulting from increased System-wide Sales, as well as the resumption of royalty revenues from BK China. Results also reflect an unfavorable FX Impact of $2 million. Excluding the FX Impact, Total revenues increased by $23 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 an unfavorable FX Impact of $2 million. Excluding the FX Impact, Adjusted Operating Income increased by $18 million.
RH Segment Results Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------
(in US$ millions,
unaudited) 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
System-wide Sales $ 488 $ 464 $ 1,443 $ 1,359
System-wide Sales
- BK US $ 471 $ 458 $ 1,403 $ 1,345
System-wide Sales
- INTL $ 17 $ 6 $ 40 $ 13
Comparable Sales 7.8 % 4.8 % 7.1 % 2.3 %
Comparable Sales
- BK US 7.8 % 4.8 % 7.2 % 2.3 %
System Restaurant
Count at Period
End 1,071 1,068 1,071 1,068
System Restaurant
Count at Period
End - BK US 950 1,012 950 1,012
System Restaurant
Count at Period
End - INTL 121 56 121 56
Total revenues $ 487 $ 459 $ 1,441 $ 1,360
Food, beverage
and packaging
costs $ 148 $ 136 $ 435 $ 391
Restaurant wages
and related
expenses $ 154 $ 148 $ 454 $ 445
Restaurant
occupancy and
other expenses
(a) $ 126 $ 119 $ 376 $ 353
--------------- --------------- --------------- ---------------
Company restaurant
expenses $ 429 $ 403 $ 1,265 $ 1,188
Advertising
expenses and
other services
(b) $ 26 $ 23 $ 75 $ 68
Segment G&A $ 28 $ 23 $ 79 $ 70
--------------- --------------- --------------- ---------------
Adjusted Operating
Income $ 5 $ 10 $ 21 $ 33
Note: RH KPIs are shown consistently with RBI's reporting calendar, but in
2025, results from BK restaurants in the statements of operations were shown
consistently with the Carrols reporting calendar, which for the three and nine
months ended September 30, 2025 were from June 30, 2025 to September 28, 2025
and from December 30, 2024 to September 28, 2025, respectively.
(a) Restaurant occupancy and other expenses include intersegment royalties
and property expenses of $30 million and $88 million during the three and
nine months ended September 30, 2026, respectively, and $28 million and
$83 million for the three and nine months ended September 30, 2025, which
are eliminated in consolidation.
(b) Advertising expenses and other services include intersegment advertising
expenses and tech fees of $22 million and $67 million during the three
and nine months ended September 30, 2026, respectively, and $21 million
and $63 million for the three and nine months ended September 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. RH segment results reflect the impact of refranchising Carrols Burger King restaurants as well as incremental investments in the PLK China and FHS Brazil start-up businesses.
For the third 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 the refranchisings of Carrols Burger King restaurants.
The decrease in Adjusted Operating Income was primarily driven by an increase in Company restaurant expenses and Segment G&A, partially offset by higher revenues. The increase in Company restaurant expenses reflects higher Carrols Burger King Company restaurant expenses, primarily driven by increased sales, as well as expenses related to scaling our international start-up businesses. The increase in Segment G&A was primarily due to higher compensation-related expenses.
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 fourth quarter of 2026. The dividend will be payable on January 5, 2027 to shareholders and unitholders of record at the close of business on December 22, 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 September 30, 2026, we repurchased 817,041 of our common shares for $61 million and 2,784,549 of Class B exchangeable limited partnership units for $214 million, excluding excise taxes. Of these repurchases, 28,010 common shares had not yet settled as of September 30, 2026 and therefore were not retired at that date. As of September 30, 2026, we had $768 million remaining under the share repurchase authorization.
Subsequent Events
Subsequent to September 30, 2026 through October 23, 2026, we repurchased 235,276 of our common shares for $17 million and as of October 23, 2026 had $751 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, October 29, 2026, to review financial results for the third quarter ended September 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: 613365043.
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 over $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 new investors for PLK China and FHS Brazil and the subsequent sunset of the RH segment; (ix) refranchising of restaurants acquired in the Carrols Acquisition; (x) commodity prices; (xi) our growth opportunities and our ability to accelerate net restaurant growth, and (xii) 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 investors for PLK China and 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 Nine Months Ended
September 30, September 30,
------------------------------- -------------------------------
2026 2025 2026 2025
-------------- --------------- -------------- ---------------
Revenues:
Supply chain
sales $ 780 $ 769 $ 2,254 $ 2,112
Company
restaurant
sales 608 588 1,784 1,746
Franchise and
property
revenues 814 778 2,329 2,201
Advertising
revenues and
other
services 323 314 942 909
-------------- --------------- -------------- ---------------
Total
revenues 2,525 2,449 7,309 6,968
Operating costs
and expenses:
Supply chain
cost of sales 618 619 1,817 1,704
Company
restaurant
expenses 509 498 1,494 1,464
Franchise and
property
expenses 151 147 409 421
Advertising
expenses and
other
services 354 342 1,064 1,017
General and
administrative
expenses 183 170 544 549
(Income) loss
from equity
method
investments (6) (2) (10) (12)
Other operating
expenses
(income), net 20 12 (27) 244
-------------- --------------- -------------- ---------------
Total
operating
costs and
expenses 1,829 1,786 5,291 5,387
-------------- --------------- -------------- ---------------
Income from
operations 696 663 2,018 1,581
Interest expense,
net 125 129 372 391
-------------- --------------- -------------- ---------------
Income from
continuing
operations before
income taxes 571 534 1,646 1,190
Income tax
(benefit)
expense from
continuing
operations (133) 94 (168) 263
-------------- --------------- -------------- ---------------
Net income from
continuing
operations 704 440 1,814 927
Net loss from
discontinued
operations
(net of tax of
$0) -- 4 -- 7
-------------- --------------- -------------- ---------------
Net income 704 436 1,814 920
-------------- --------------- -------------- ---------------
Net income
attributable
to
noncontrolling
interests 162 121 427 257
-------------- --------------- -------------- ---------------
Net income
attributable to
common
shareholders $ 542 $ 315 $ 1,387 $ 663
============== =============== ============== ===============
Earnings per
common share
Basic net
income per
share from
continuing
operations $ 1.55 $ 0.97 $ 3.99 $ 2.04
Basic net loss
per share from
discontinued
operations $ -- $ (0.01) $ -- $ (0.02)
-------------- --------------- -------------- ---------------
Basic net
income per
share $ 1.55 $ 0.96 $ 3.99 $ 2.03
============== =============== ============== ===============
Diluted net
income per
share from
continuing
operations $ 1.54 $ 0.96 $ 3.95 $ 2.03
Diluted net
loss per share
from
discontinued
operations $ -- $ (0.01) $ -- $ (0.01)
-------------- --------------- -------------- ---------------
Diluted net
income per
share $ 1.54 $ 0.96 $ 3.95 $ 2.01
============== =============== ============== ===============
Weighted average
shares outstanding
(in millions):
Basic 349 328 348 327
Diluted 457 457 459 456
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions of U.S. dollars, except share data, Unaudited)
As of
------------------------------------------
September 30, 2026 December 31, 2025
-------------------- --------------------
ASSETS
--------------------------------
Current assets:
Cash and cash equivalents $ 974 $ 1,163
Accounts and notes
receivable, net of allowance
of $45 and $54,
respectively 799 794
Inventories, net 237 205
Prepaids and other current
assets 300 179
Assets held for sale -
discontinued operations -- 489
-------------------- --------------------
Total current assets 2,310 2,830
Property and equipment, net of
accumulated depreciation and
amortization of $1,335 and
$1,245, respectively 2,251 2,303
Operating lease assets, net 1,998 1,961
Intangible assets, net 10,880 11,190
Goodwill 6,166 6,306
Other assets, net 1,658 1,025
-------------------- --------------------
Total assets $ 25,263 $ 25,615
==================== ====================
LIABILITIES AND SHAREHOLDERS'
EQUITY
--------------------------------
Current liabilities:
Accounts and drafts payable $ 816 $ 866
Other accrued liabilities 1,344 1,271
Gift card liability 168 249
Current portion of long-term
debt and finance leases 89 68
Liabilities held for sale -
discontinued operations -- 437
-------------------- --------------------
Total current liabilities 2,417 2,891
Long-term debt, net of current
portion 13,184 13,250
Finance leases, net of current
portion 243 261
Operating lease liabilities, net
of current portion 1,941 1,900
Other liabilities, net 895 1,034
Deferred income taxes, net 1,055 1,120
-------------------- --------------------
Total liabilities 19,735 20,456
-------------------- --------------------
Shareholders' equity:
Common shares, no par value;
unlimited shares authorized
at September 30, 2026 and
December 31, 2025;
348,600,694 shares issued
and outstanding at
September 30, 2026;
346,323,165 shares issued
and outstanding at
December 31, 2025 2,686 2,859
Retained earnings 2,490 1,795
Accumulated other
comprehensive income (loss) (1,236) (1,020)
-------------------- --------------------
Total Restaurant Brands
International Inc.
shareholders' equity 3,940 3,634
Noncontrolling interests 1,588 1,525
-------------------- --------------------
Total shareholders' equity 5,528 5,159
-------------------- --------------------
Total liabilities and
shareholders' equity $ 25,263 $ 25,615
==================== ====================
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars, Unaudited)
Nine Months Ended September 30,
------------------------------------------
2026 2025
-------------------- --------------------
Cash flows from operating
activities:
Net income $ 1,814 $ 920
Net loss from discontinued
operations -- 7
-------------------- --------------------
Net income from continuing
operations 1,814 927
Depreciation and amortization 229 225
Amortization of deferred
financing costs and debt
issuance discount 18 19
(Income) loss from equity
method investments (10) (12)
(Gain) loss on remeasurement
of foreign denominated
transactions (61) 208
Net (gains) losses on
derivatives (125) (151)
Share-based compensation and
non-cash incentive
compensation expense 104 113
Deferred income taxes (465) (19)
Other non-cash adjustments,
net 21 44
Changes in current assets and
liabilities, excluding
acquisitions and
dispositions:
Accounts and notes
receivable (27) (66)
Inventories and prepaids
and other current assets (55) (76)
Accounts and drafts
payable (35) 58
Other accrued liabilities
and gift card liability (55) (62)
Tenant inducements paid to
franchisees (32) (26)
Changes in other long-term
assets and liabilities (13) (23)
-------------------- --------------------
Net cash provided
by operating
activities from
continuing
operations 1,308 1,159
-------------------- --------------------
Cash flows from investing
activities:
Payments for additions of
property and equipment (181) (163)
Net proceeds from disposal of
assets, restaurant closures,
and refranchisings 54 26
Net payments for acquisition
of franchised restaurants,
net of cash acquired (10) (152)
Settlement/sale of
derivatives, net 42 58
Other investing activities,
net (23) 18
-------------------- --------------------
Net cash used for
investing
activities from
continuing
operations (118) (213)
-------------------- --------------------
Cash flows from financing
activities:
Repayments of long-term debt
and finance leases (86) (198)
Payment of common share
dividends and Partnership
exchangeable unit
distributions (875) (826)
Repurchase of RBI common
shares and Partnership
exchangeable units (444) --
Proceeds from stock option
exercises 44 20
Proceeds from derivatives 29 52
-------------------- --------------------
Net cash used for
financing
activities from
continuing
operations (1,332) (952)
-------------------- --------------------
Net cash used for
discontinued operations (27) (52)
Effect of exchange rates on
cash and cash equivalents (11) 15
-------------------- --------------------
Decrease in cash and cash
equivalents, including cash
classified as assets held
for sale - discontinued
operations (180) (43)
Increase in cash classified
as assets held for sale -
discontinued operations (9) (85)
-------------------- --------------------
(Decrease) increase in cash
and cash equivalents (189) (128)
Cash and cash equivalents at
beginning of period 1,163 1,334
-------------------- --------------------
Cash and cash equivalents at
end of period $ 974 $ 1,206
==================== ====================
Supplemental cash flow
disclosures:
Interest paid $ 468 $ 514
Income taxes paid, net $ 297 $ 369
Accruals for additions of
property and equipment $ 30 $ 50
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 LTM 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 new investors for PLK China and 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 September 30, 2026
(In millions of U.S. dollars, except per share data, Unaudited)
Three Months Ended
September 30, Variance RH Impact FX Impact Organic Growth
---------------------- -------------------- ----------- ----------- -------------------
2026 2025 $ % $ $ $ %
---------- ---------- ---------- -------- ----------- ----------- ---------- -------
Revenue
--------------
TH $ 1,136 $ 1,125 $ 11 1.0 % $ -- $ (16) $ 27 2.5 %
BK 396 387 9 2.3 % -- -- 9 2.3 %
PLK 204 201 4 1.8 % -- -- 4 1.8 %
FHS 65 60 5 9.0 % -- -- 5 9.1 %
INTL 289 268 22 8.1 % -- (2) 23 8.8 %
RH 487 459 28 6.2 % 28 -- -- -- %
Elimination of
intersegment
revenues (a) (52) (49) (2) 5.0 % (2) -- -- -- %
---------- ---------- ---------- -------- ----------- ----------- ---------- -------
Total Revenues $ 2,525 $ 2,449 $ 77 3.1 % $ 26 $ (18) $ 69 3.4 %
========== ========== ========== ======== =========== =========== ========== =======
Income from
Operations $ 696 $ 663 $ 33 5.0 % $ (23) $ (7) $ 64 9.7 %
Net Income from
Continuing
Operations $ 704 $ 440 $ 264 59.8 % $ (20) $ (6) $ 290 66.7 %
Adjusted
Operating
Income
--------------
TH $ 317 $ 304 $ 13 4.2 % $ -- $ (4) $ 17 5.8 %
BK 136 123 13 10.6 % -- -- 13 10.7 %
PLK 58 63 (5) (8.0) % -- -- (5) (7.9) %
FHS 16 14 2 11.1 % -- -- 2 11.2 %
INTL 205 189 17 8.9 % -- (2) 18 9.9 %
RH 5 10 (4) (46.6) % (4) -- -- -- %
---------- ---------- ---------- -------- ----------- ----------- ---------- -------
Adjusted
Operating
Income $ 737 $ 702 $ 35 5.0 % $ (4) $ (6) $ 46 6.7 %
========== ========== ========== ======== =========== =========== ========== =======
Adjusted EBITDA $ 829 $ 794 $ 35 4.4 % $ (5) $ (7) $ 46 6.1 %
Adjusted Net
Income $ 505 $ 471 $ 33 7.0 % $ (3) $ (5) $ 41 8.8 %
Adjusted
Diluted
Earnings per
Share $ 1.10 $ 1.03 $ 0.07 6.9 % $ (0.01) $ (0.01) $ 0.09 8.6 %
(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
Nine Months Ended September 30, 2026
(In millions of U.S. dollars, except per share data, Unaudited)
Nine Months Ended
September 30, Variance RH Impact FX Impact Organic Growth
---------------------- -------------------- ----------- ---------- -------------------
2026 2025 $ % $ $ $ %
---------- ---------- ---------- -------- ----------- ---------- ---------- -------
Revenue
--------------
TH $ 3,270 $ 3,112 $ 158 5.1 % $ -- $ 20 $ 139 4.4 %
BK 1,157 1,131 26 2.3 % -- -- 26 2.3 %
PLK 593 605 (12) (1.9) % -- -- (12) (1.9) %
FHS 186 172 14 8.1 % -- -- 14 8.1 %
INTL 817 735 82 11.2 % -- 17 65 8.6 %
RH 1,441 1,360 81 5.9 % 81 -- -- -- %
Elimination of
intersegment
revenues (a) (155) (146) (9) 5.9 % (9) -- -- -- %
---------- ---------- ---------- -------- ----------- ---------- ---------- -------
Total Revenues $ 7,309 $ 6,968 $ 341 4.9 % $ 72 $ 37 $ 232 4.0 %
========== ========== ========== ======== =========== ========== ========== =======
Income from
Operations $ 2,018 $ 1,581 $ 437 27.7 % $ (23) $ 2 $ 458 29.0 %
Net Income from
Continuing
Operations $ 1,814 $ 927 $ 887 95.6 % $ (24) $ 2 $ 909 97.8 %
Adjusted
Operating
Income
--------------
TH $ 833 $ 803 $ 30 3.8 % $ -- $ 4 $ 26 3.2 %
BK 388 347 41 11.9 % -- -- 41 11.9 %
PLK 177 188 (12) (6.1) % -- -- (12) (6.2) %
FHS 47 41 6 15.4 % -- -- 6 15.3 %
INTL 596 499 97 19.4 % -- 9 88 17.2 %
RH 21 33 (12) (35.6) % (12) -- -- -- %
---------- ---------- ---------- -------- ----------- ---------- ---------- -------
Adjusted
Operating
Income $ 2,061 $ 1,910 $ 151 7.9 % $ (12) $ 14 $ 149 7.8 %
========== ========== ========== ======== =========== ========== ========== =======
Adjusted EBITDA $ 2,345 $ 2,198 $ 147 6.7 % $ (1) $ 15 $ 133 6.2 %
Adjusted Net
Income $ 1,391 $ 1,247 $ 144 11.6 % $ (8) $ 12 $ 140 11.1 %
Adjusted
Diluted
Earnings per
Share $ 3.03 $ 2.73 $ 0.30 11.1 % $ (0.02) $ 0.03 $ 0.29 10.6 %
(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 September 30, 2026 September 30, 2025
--------------------- ------------------------ ------------------------
Long-term debt, net
of current portion $ 13,184 $ 13,415
Finance leases, net
of current portion 243 269
Current portion of
long-term debt and
finance leases 89 116
Unamortized deferred
financing costs and
deferred issuance
discount 72 98
------------------------ ------------------------
Total debt 13,588 13,898
Cash and cash
equivalents 974 1,206
Net debt 12,614 12,692
LTM Net Income from
continuing
operations 2,088 1,288
------------------------ ------------------------
Net Income from
continuing operations
Net leverage 6.0x 9.9x
======================== ========================
LTM Adjusted EBITDA 3,117 2,886
------------------------ ------------------------
Net Leverage 4.0x 4.4x
======================== ========================
Free Cash Twelve Months Ended Twelve Months Ended
Flow Nine Months Ended September 30, December 31, September 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 $ 1,308 $ 1,159 $ 1,022 $ 1,714 $ 1,503 $ 1,863 $ 1,640
Payments for
additions
of property
and
equipment (181) (163) (124) (265) (201) (283) (240)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Free Cash
Flow $ 1,127 $ 996 $ 898 $ 1,449 $ 1,302 $ 1,580 $ 1,400
=========== =========== =========== =========== =========== =========== ===========
Three Months Ended September Nine Months Ended September
30, 30,
---------------------------- ----------------------------
Capex and Cash
Inducements 2026 2025 2026 2025
-------------- ------------- ------------- ------------- -------------
Payments for
additions of
property and
equipment $ 72 $ 61 $ 181 $ 163
Tenant
inducements
paid to
franchisees 14 12 32 26
Other cash
inducements
(incl. in
changes in
other
long-term
assets and
liabilities) 8 9 29 37
Increase
(decrease)
in accruals
for
additions to
property and
equipment 11 28 (23) (1)
------------- ------------- ------------- -------------
Total Capex
and Cash
Inducements $ 105 $ 110 $ 219 $ 225
============= ============= ============= =============
Note: Totals may not recalculate due to rounding.
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 Ended Nine Months Ended Twelve Months Ended Twelve Months Ended
September 30, September 30, December 31, September 30,
-------------------- ------------------------------- -------------------- --------------------
2026 2025 2026 2025 2024 2025 2024 2026 2025
--------- --------- --------- --------- --------- --------- --------- --------- ---------
A B C D E A + D - B B + E - C
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net income from
continuing
operations $ 704 $ 440 $ 1,814 $ 927 $ 1,084 $ 1,201 $ 1,445 $ 2,088 $ 1,288
Income tax
(benefit)
expense from
continuing
operations(3) (133) 94 (168) 263 225 483 364 52 402
Loss on early
extinguishment
of debt -- -- -- -- 33 2 33 2 --
Interest
expense, net 125 129 372 391 442 516 577 497 526
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Income from
operations 696 663 2,018 1,581 1,784 2,202 2,419 2,639 2,216
Franchise
agreement and
reacquired
franchise
rights
amortization
(FAA) 16 16 48 49 38 65 53 64 64
RH and BK China
Transaction
costs 2 7 11 29 17 37 22 19 34
Corporate
restructuring
and advisory
fees 5 1 9 7 11 14 20 16 16
Impact of
equity method
investments(2) (3) 2 1 (1) (57) 5 (53) 7 3
Other operating
expenses
(income), net 20 12 (27) 244 31 261 (59) (10) 154
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Adjusted
Operating
Income $ 737 $ 702 $ 2,061 $ 1,910 $ 1,824 $ 2,584 $ 2,402 $ 2,735 $ 2,488
========= ========= ========= ========= ========= ========= ========= ========= =========
Depreciation
and
amortization,
excluding FAA 58 60 181 176 148 236 210 240 238
Share-based
compensation
and non-cash
incentive
compensation
expense(1) 34 32 104 113 124 151 172 142 161
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Adjusted EBITDA $ 829 $ 794 $ 2,345 $ 2,198 $ 2,096 $ 2,970 $ 2,784 $ 3,117 $ 2,886
========= ========= ========= ========= ========= ========= ========= ========= =========
Net income from continuing operations to Adjusted Net Income and Adjusted Diluted EPS
Three Months Ended September 30, Nine Months Ended September 30,
---------------------------------- ----------------------------------
2026 2025 2026 2025
---------------- ---------------- ---------------- ----------------
Net income from
continuing
operations $ 704 $ 440 $ 1,814 $ 927
Income tax
(benefit)
expense from
continuing
operations(3) (133) 94 (168) 263
---------------- ---------------- ---------------- ----------------
Income from
continuing
operations
before income
taxes 571 534 1,646 1,190
Adjustments:
Franchise
agreement and
reacquired
franchise
rights
amortization 16 16 48 49
Amortization of
deferred
financing
costs and debt
issuance
discount 6 6 18 19
Interest
expense and
loss on
extinguished
debt(4) (7) (5) (21) (15)
RH and BK China
Transaction
costs 2 7 11 29
Corporate
restructuring
and advisory
fees 5 1 9 7
Impact of
equity method
investments(2) (3) 2 1 (1)
Other operating
expenses
(income), net 20 12 (27) 244
---------------- ---------------- ---------------- ----------------
Total
adjustments 39 39 39 332
Adjusted income
before income
taxes 610 573 1,685 1,522
---------------- ---------------- ---------------- ----------------
Adjusted income
tax
expense(3)(5) 106 102 295 276
---------------- ---------------- ---------------- ----------------
Adjusted net
income $ 505 $ 471 $ 1,391 $ 1,247
================ ================ ================ ================
Adjusted diluted
earnings per
share $ 1.10 $ 1.03 $ 3.03 $ 2.73
Weighted average
diluted shares
outstanding (in
millions) 457 457 459 456
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 tax assets in
connection with intra-group reorganizations undertaken in 2026, partially
offset by the impact of the administrative guidance issued by the
Organization for 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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