Restaurant Brands International delivered a solid Q3 2025, with revenue rising to $2.45 billion from $2.29 billion a year earlier and system-wide sales climbing 6.9%, a clear acceleration from the prior year’s pace. Comparable sales grew 4.0%, reflecting broad-based strength across its key brands—Burger King, Tim Hortons, Popeyes, and Firehouse Subs—while adjusted EPS increased to $1.03 from $0.93, marking roughly 11% growth. Net income also advanced meaningfully to $440 million, up from $357 million.
The company introduced a new Restaurant Holdings (RH) segment, which includes the performance of Popeyes China and the restaurants it acquired from Carrols, which was Burger King’s largest U.S. franchisee before Restaurant Brands bought it. This new segment's performance was included in the Q3 2024 report.
Restaurant Brands International reaffirmed guidance for >8% organic adjusted operating income growth in 2025, supported by brand investments, operational upgrades, and global unit expansion. Burger King’s “Reclaim the Flame” plan, Tim Hortons’ menu and digital initiatives, and rapid growth at Popeyes and Firehouse Subs are key levers. Management is focused on offsetting inflation with efficiency gains and G&A discipline while warning that FX and regulatory changes remain risks. Strategically, RBI is banking on strong contributions from Tim Hortons and its International operations, which together generate about 70% of earnings.
QSR is one of the largest fast-food restaurant chains in the world and it is a combination of four iconic brands - Burger King, Tim Hortons, Popeyes, and Firehouse Subs. In addition, the company operates International operations for all these brands outside U.S. and China. QSR also established a new operating segment after acquisition of Carrols Restaurant Group Inc and Popeyes China
Burger King's restaurants fall into the quick service restaurants category in the U.S. and Canada - that features flame-grilled hamburgers, fish and chicken combos, french fries, soft drinks, and other affordable food items. Burger King restaurants appeal to a wide range of consumers, with multiple dayparts and product platforms appealing to varied customer groups. The fast-food chain competes with McDonald's and Wendy's in the Fast Food Hamburger Restaurant (FFHR) category.
Tim Hortons restaurants are quick-service restaurants with a menu that includes premium blend coffee, tea, espresso-based hot and cold specialty drinks, fresh baked goods, including donuts, bagels, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and more. These account for operations in the U.S. and Canada.
Popeyes Louisiana Kitchen is a chain of quick-service restaurants that distinguish themselves with a unique Louisiana style menu that features spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. Popeyes is a highly differentiated QSR brand with a passion for its Louisiana heritage and flavorful, authentic food. Restaurant Brands International acquired Popeyes Louisiana Kitchen (PLK) in March 2017. These account for operations in the U.S. and Canada
Firehouse Subs is a leading player in the QSR sandwich category in North America. This brand was acquired by QSR on December 15, 2021. These account for operations in the U.S. and Canada
Company-operated restaurants are low-margin businesses (~10-15% operating margin) as compared to franchised restaurants (~70% operating margin). The difference in margins is mainly because of the extra costs involved with company-operated restaurants, such as employees and operational costs, which are absent from franchised restaurants.
QSR is one of the world’s largest quick service restaurant (“QSR”) companies with nearly $45 billion in annual system-wide sales and more than 32,000 restaurants in more than 120 countries and territories as of 2024. Approximately 95% of system-wide restaurants were franchised. As Restaurant Brands International looks to become a 100% franchised model, it will mean lower revenues but higher margins for the company.
The fast-food industry faces strong competition from Fast Casual Restaurants. Restaurants such as Chipotle Mexican Grill and Panera Bread are more likely to appeal to health-conscious customers. They claim to offer fresher, healthier, and better quality food.
More than 50% of Burger King restaurants are in the U.S. This figure is expected to remain stagnant in the next few years, owing to the saturation of the fast-food industry in the country.
Burger King has entered into joint venture agreements in various parts of the world to expand its business. In countries like China, Australia, Colombia, and South Africa, the company is set to open numerous new restaurants without deploying its capital. Going forward, most of the expansion will come from international markets where the company is expected to earn only royalties. Thus, the growth of the company in the next few years depends on its performance in the international markets.
