Restaurant Brands International (QSR) Sees Solid Q4 Performance Amid Competitive Shifts

Restaurant Brands International (QSR), the parent company of Burger King, Tim Hortons, and Popeyes Louisiana Kitchen, reported a solid fourth quarter, surpassing earnings expectations and accelerating consolidated comparable sales growth.

While not an extraordinary quarter, the results demonstrated the company's ability to navigate a highly competitive quick-service restaurant (QSR) landscape, aided by both internal promotions and external industry disruptions.

One of the notable factors in QSR’s performance was the impact of McDonald's (MCD) temporary struggles. An E. coli outbreak affecting McDonald's in September and October led to some consumer hesitation around the brand, giving QSR’s Burger King a potential boost. While the impact on McDonald's overall business was not as severe as initially feared, the situation created an opportunity for QSR to regain some market share in the U.S.

Burger King’s same-store sales returned to positive territory, growing 1.1 percent globally and 1.5 percent in the U.S. after a negative 0.7 percent performance in Q3. This suggests that the brand was able to capitalize on the momentary weakness at McDonald's while benefiting from its own promotional initiatives.

A key driver of the sales rebound was Burger King’s "Million Dollar Whopper" campaign, in which the chain sold one million Whoppers for just $1. Value-driven promotions like these continue to resonate with consumers in an inflationary environment where affordability remains a central theme.

Popeyes also had a better quarter compared to Q3, with U.S. same-store sales inching up 0.1 percent, a notable improvement from the previous quarter’s 4 percent decline. The restaurant benefited from strategic menu promotions, including the $6 Big Box and the protein-focused 3-for-$5 deal. These offerings helped Popeyes regain momentum in the chicken QSR space, where competition remains intense with rivals such as KFC and Chick-fil-A.

In addition to value promotions, the brand is focusing on operational improvements, including enhanced kitchen equipment, digital kiosks, and more efficient ordering systems. These upgrades are part of a broader effort to modernize Popeyes' infrastructure and improve service times, a common pain point in the QSR industry.

Tim Hortons, the largest contributor to QSR's revenue mix at around 40 percent, saw stable performance with same-store sales growth of 2.2 percent in Canada. This was in line with prior quarter results and was mainly driven by increased traffic. The breakfast segment remains a key growth area for Tim Hortons, with new product innovations, including freshly scrambled eggs, helping to maintain customer interest.

Despite these positive developments, QSR still faces industry-wide challenges. While Burger King’s turnaround efforts are showing early signs of success, long-term sustainable growth will depend on maintaining customer engagement through promotions and product innovation while improving operational efficiencies.

The company has reaffirmed its long-term guidance, targeting at least 3 percent same-store sales growth, 5 percent net restaurant growth, and 8 percent system-wide sales growth annually through 2028.

Looking forward, QSR’s ability to sustain its recovery will depend on several factors, including consumer spending behavior, competition within the QSR space, and execution of digital and operational improvements across its brands.

While the near-term outlook appears stable, ongoing industry headwinds such as pricing pressures and evolving consumer preferences will require continued adaptation. For investors, QSR's focus on brand revitalization and digital transformation provides a long-term growth story, but execution will be key in maintaining momentum.