Q2 2026 Restaurant Brands International Inc. Earnings Call Transcript
Key Points
- Restaurant Brands International Inc (QSR) delivered strong Q2 results with 3.8% same-store sales growth, 6.4% system-wide sales growth, and 12.9% adjusted EPS growth, exceeding its long-term algorithm for the third consecutive quarter.
- Burger King US was a standout performer, with same-store sales up 8.5%, beating the burger QSR industry by over 9 points, driven by successful brand elevation campaigns and a 20% increase in Whopper platform AUVs.
- The international business continues to be a major growth engine, delivering 5.5% comparable sales and 5.1% net restaurant growth, with strong performance across key markets like Germany, Spain, Brazil, China, Korea, and Japan.
- The company is making significant progress toward its investment-grade leverage goal, receiving a ratings upgrade from S&P to BB+ and reducing its net leverage ratio to 4.1 times.
- Restaurant Brands International Inc (QSR) returned $435 million of capital to shareholders in Q2 through dividends and share repurchases, and remains on track to repurchase approximately $500 million for the full year.
- Tim Hortons' Canadian same-store sales were relatively flat at plus 0.1%, as the marketing calendar failed to drive expected growth and was unable to lap last year's major platform launches.
- Popeyes US experienced a same-store sales decline of 5.2%, which more than offset its modest net restaurant growth, resulting in negative system-wide sales of 3.3%.
- The company faces a $10 million headwind to AOI and a $0.02 to $0.03 headwind to adjusted EPS for the second half of 2026 due to recent currency movements and US dollar appreciation.
- Beef costs remain at all-time highs, impacting franchisee profitability, with significant relief not expected until the beginning of 2027, potentially delaying the pace of restaurant remodels.
- The refranchising process for the Restaurant Holdings segment was slower than expected in Q2, with the company noting that the path will not be entirely linear as it seeks the right buyers.
Good morning, and welcome to Restaurant Brands International's second quarter 2026 earnings conference call.
All participants will be in listen-only mode.
Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions.
To ask a question, you may press star then one on your telephone keypad.
You will hear a tone to confirm that you are in the queue.
To exit the question queue, you may press star then two.
All callers will be limited to one question.
Please note this event is being recorded.
I would now like to turn the conference over to Kendall Peck, RBI's Vice President of Treasury and Investor Relations.
Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Restaurant Brands International's earnings call for the quarter ended June 30, 2026.
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