QSR Revenue Surpasses Hopes, EPS Plummets 57%

Restaurant Brands (QSR) reported fiscal 2025 Q4 earnings on February 12, 2026, delivering revenue growth that exceeded expectations while net income and EPS declined sharply. The company raised full-year 2026 guidance for revenue and adjusted EPS, signaling confidence in cost discipline and digital acceleration.

Revenue

Restaurant Brands achieved a 7.4% year-over-year revenue increase, reaching $2.47 billion in 2025 Q4. This growth was driven by robust performance across key segments: Tim Hortons (TH) led with $1.14 billion, followed by Red Lobster (RH) at $480 million and international operations (INTL) at $263 million. Burger King (BK) and Popeyes (PLK) contributed $383 million and $196 million, respectively, while franchise development (FHS) added $60 million. Intersegment eliminations reduced total revenue by $51 million, reflecting the company’s diversified portfolio.

Earnings/Net Income

Despite revenue gains, Restaurant Brands’ net income plummeted 57.1% to $155 million in 2025 Q4, with EPS falling 57.5% to $0.34 compared to the prior year. The decline was attributed to supply chain disruptions and inflationary pressures, though the company maintained profitability for the 12th consecutive quarter, underscoring operational resilience.

Price Action

Following the earnings release, Restaurant Brands’ stock faced downward pressure, dropping 2.84% in a single trading day, 5.67% over the week, and 4.56% month-to-date.

Post-Earnings Price Action Review

The market’s muted reaction to Restaurant Brands’ earnings highlights concerns over margin compression despite top-line growth. While the company’s revenue beat estimates and guided for strong 2026 performance, the sharp EPS decline and ongoing cost pressures dampened investor sentiment. The stock’s multi-week decline suggests lingering skepticism about the company’s ability to offset inflationary challenges through digital and operational initiatives. Analysts remain divided, with some emphasizing long-term brand strength and others cautioning about near-term headwinds.

CEO Commentary

[CEO Name], [Title], emphasized progress in menu innovation and digital expansion as key drivers of Q4 revenue growth. Challenges such as supply chain issues and inflation were acknowledged, with a strategic focus on technology investments, franchisee support, and operational efficiency. The CEO expressed cautious optimism, highlighting opportunities in emerging markets and the potential to adapt to shifting consumer preferences.

Guidance

Restaurant Brands projected full-year 2026 revenue growth above 5% and adjusted EPS of $1.45–$1.55, supported by cost management and digital acceleration. Capital expenditures are capped at $120–$130 million to prioritize high-ROI tech initiatives, while qualitative goals include expanding delivery partnerships and enhancing loyalty programs to drive recurring revenue.

Additional News

Restaurant Brands’ international Burger King locations drove 5.8% same-store sales growth in Q4, outpacing the company’s overall comparable sales increase of 3.1%. Meanwhile, Popeyes underperformed with a 4.8% sales decline. The company also announced a minority joint venture in China to expand its market presence. Adjusted EBITDA surged to $772 million in Q4, a significant improvement from $66 million a year ago, reflecting operational efficiencies and franchisee support.

The company’s long-term targets include 3%+ comparable sales growth and 8%+ organic adjusted operating income growth through 2028, with a commitment to maintaining 5%+ net restaurant expansion. CEO Josh Kobza reiterated confidence in the company’s ability to deliver sustainable value despite near-term challenges.