Restaurant Brands International Inc.

Q2 comparable sales were 3.8%, net restaurant growth was 2.9%, system-wide sales growth was 6.4%, organic AOI growth was 6.7%, and adjusted EPS growth was 12.9%. Adjusted EPS was $1.07 per share versus $0.94 last year. Free cash flow was $501 million, capital returned to shareholders was $435 million, and the company repurchased $137 million of stock. Net leverage was 4.1x and total liquidity was approximately $2.3 billion, including $1.1 billion of cash. For 2026, management reaffirmed segment G&A of $600 million to $620 million, net adjusted interest expense of $500 million to $520 million, CapEx and cash inducements of about $400 million, Tim Hortons supply chain margins roughly in line with 2025, RH AOI of $10 million to $20 million, and an estimated second-half FX headwind of about $10 million to AOI and $0.02 to $0.03 to adjusted EPS. The company reiterated its 8% organic adjusted operating income growth target and said it remains on track to repurchase approximately $500 million of stock in 2026.

Josh Kobza said the quarter showed the company’s 2028 vision is taking hold, with broad-based sales and earnings growth across the portfolio. He emphasized that Burger King’s gains are coming from better operations, image, and menu execution, while Tim Hortons and international continue to provide diversification and consistency. His tone was confident and constructive, but he repeatedly framed the progress as early and said there is still significant runway ahead.

Sami Siddiqui focused on the financial translation of the sales momentum into earnings, citing adjusted EPS of $1.07, free cash flow of $501 million, and $435 million returned to shareholders in the quarter. He highlighted a lower year-over-year adjusted net interest expense burden by $6 million, a 16.8% adjusted effective tax rate in Q2, and reaffirmed full-year guidance for G&A, interest expense, CapEx/cash inducements, and RH AOI. He also pointed to 4.1x net leverage, BB+ from S&P, and the plan to move toward investment-grade leverage by 2028 or the low- to mid-3x range.

Analysts pressed on Burger King’s longer-term upside, Tim Hortons’ late-quarter improvement and whether gains are share-driven, Popeyes’ slower turnaround, Burger King U.S. refranchising and remodel pacing, and menu pricing in the U.S. Management said Burger King still has a lot of runway from modern image, operations and menu elevation, and that Tim Hortons’ second-half calendar includes matcha, Harry Potter, Canadian Tire loyalty and more breakfast and cold-beverage innovation. On Popeyes, management said value changes, core-menu focus and operations work are already helping and reiterated confidence in positive second-half comps, while on refranchising they said the buyer pipeline has more than doubled and the plan remains to do a few hundred deals in 2026 and finish RH by end-2027.