RBI Rides International Wave as Domestic Brands Face Headwinds

MIAMI, FL – February 12, 2026 – Restaurant Brands International (NYSE: QSR) posted strong fourth-quarter and full-year 2025 results, buoyed by a powerful performance in its international markets that masked a more complex and challenging picture at home. The parent company of Burger King, Tim Hortons, Popeyes, and Firehouse Subs reported a 5.8% increase in consolidated system-wide sales for the quarter, meeting its key financial targets for the year and underscoring a strategy heavily reliant on global expansion.

"Our performance in 2025 reflects the progress we've made strengthening our brands and our system, driven by consistent execution from our teams and franchisees," said CEO Josh Kobza in a statement, highlighting the company's third straight year of roughly 8% organic Adjusted Operating Income (AOI) growth.

While the headline numbers painted a rosy picture, including the return of approximately $1.1 billion to shareholders, a deeper dive into the performance of its individual brands reveals a company navigating divergent paths. A booming international business is providing a powerful tailwind, while significant domestic challenges, particularly at Popeyes and with Burger King franchisee profitability, remain key hurdles for 2026.

The Global Engine Fires on All Cylinders

The undeniable star of RBI's portfolio is its International (INTL) segment, which delivered impressive results and stands as the primary engine of growth. The division, which accounts for nearly half of RBI's total restaurant count and about 27% of its operating profit, saw comparable sales surge by 6.1% in the fourth quarter, accelerating from the prior year. For the full year, system-wide sales in international markets grew by nearly 11%.

This growth wasn't isolated to one region. Burger King saw strong results in key markets like France and Australia, where its Hungry Jack's brand launched new beverages to great success. The UK business has now matured into one of five international Burger King markets generating over $1 billion in sales. This consistent, broad-based strength demonstrates the success of RBI's playbook of leveraging strong local partners, modernizing restaurants, and deploying effective digital and marketing strategies across Europe and the Asia-Pacific region.

Further cementing its focus on global growth, RBI finalized a major strategic shift in China. After taking temporary control of the Burger King China business and engineering a turnaround that produced three consecutive quarters of positive same-store sales, the company entered into a new joint venture. The deal, which closed in January 2026, places a majority 83% stake with a fund managed by CPE, which injected $350 million in new capital. RBI retains a 17% stake and a board seat, setting the stage for an ambitious plan to double Burger King's footprint in China to at least 2,500 locations by 2030, all while transitioning to a less capital-intensive royalty-based revenue model.

A Mixed Menu of Domestic Performance

Back in North America, the story is far more nuanced. While some brands held their ground, others stumbled, highlighting the varied challenges across the domestic portfolio.

Tim Hortons proved to be a reliable performer in its home market of Canada, posting its 19th consecutive quarter of positive comparable sales. The brand saw a 2.8% lift in Canadian comparable sales in Q4, driven by strong performance in breakfast foods and a booming cold beverage category, which now accounts for a record 27% of all drink sales. Critically, Tim Hortons returned to net restaurant growth in Canada for the first time since 2021, suggesting a stabilization of its core market.

Firehouse Subs also delivered a strong year, with comparable sales up 2.1% in the quarter and net restaurant growth of 7.7%. The sandwich chain was one of Canada's fastest-growing quick-service brands in 2025 and saw franchisee profitability in the U.S. climb to over $100,000, marking it as a solid growth asset for RBI.

In stark contrast, Popeyes faced a difficult year. The U.S. business saw comparable sales plummet by 4.9% in the fourth quarter and 3.2% for the full year. The sales slump directly impacted franchisee profitability, which fell to $235,000. While management notes this is still a healthy level, the trend is concerning. In response, RBI appointed a new brand president, Peter Perdue, in November 2025 to spearhead a turnaround focused on improving restaurant-level execution and re-engaging with the brand's core customers.

Burger King's 'Reclaim the Flame': Progress and Pain Points

Nowhere is the complexity of RBI's domestic situation more apparent than at Burger King U.S. The brand's multi-year, $700 million "Reclaim the Flame" revitalization plan is showing signs of progress, but not without significant pain points for its franchisees.

On the positive side, the strategy appears to be driving traffic. U.S. comparable sales grew 2.6% in the fourth quarter, and the brand has now outperformed its direct quick-service burger competitors in nine of the last twelve quarters. Marketing initiatives like the SpongeBob Movie Menu drove the highest kids' meal sales in a decade, demonstrating an ability to create cultural moments.

However, this top-line improvement came at a cost to operators. Average franchisee profitability fell from $205,000 in 2024 to $185,000 in 2025. The company attributes this "step back" almost entirely to a more than 20% spike in beef costs. While RBI expects profitability to recover as commodity prices normalize, the decline highlights the financial pressure on the franchisees who are being asked to invest heavily in remodels.

The "Royal Reset" portion of the plan, focused on modernization, has pushed the share of modern-image restaurants from 51% to 58%. Yet, RBI acknowledged that its previous goal of reaching 85% modern image will be delayed due to the high-cost environment, a pragmatic adjustment to a challenging reality. The acquisition of Carrols Restaurant Group, a major franchisee, is a key tool in this effort, allowing RBI to control and accelerate remodels on over 1,000 restaurants before refranchising them to new or existing operators.

Charting the Course with Shareholder Value in Mind

Despite the operational headwinds in some segments, RBI's leadership is projecting confidence through its financial strategy and long-term outlook. The company's declaration of a $0.65 quarterly dividend and its announced target of a $2.60 annual dividend for 2026 sends a clear signal to investors about its commitment to capital returns.

This confidence is underpinned by a long-term growth algorithm, which the company reaffirmed, targeting 3% or more in comparable sales growth and over 8% in organic Adjusted Operating Income growth on average through 2028. The company also expects to ramp up net restaurant growth to over 5% toward the end of that period, a significant acceleration from the 2.9% reported for 2025.

For the year ahead, RBI is guiding for around $400 million in capital expenditures, much of which is earmarked for Tim Hortons' development and accelerating the remodels of the recently acquired Carrols Burger King locations. This disciplined capital allocation, combined with the strategic restructuring in China and the focus on operational turnarounds at home, forms the blueprint for RBI's path forward as it navigates its portfolio of iconic, yet individually distinct, global brands.