Restaurant Brands International Limited Partnership

Q2 comparable sales grew 3.8%, net restaurant growth was 2.9%, system-wide sales grew 6.4%, organic adjusted operating income grew 6.7%, and adjusted EPS grew 12.9% to $1.07 per share from $0.94 last year. Segment highlights included Tim Hortons Canada comparable sales of 0.1%, International comparable sales of 5.5% and net restaurant growth of 5.1%, Burger King comparable sales of 8.6% with U.S. same-store sales of 8.5%, Popeyes U.S. same-store sales down 5.2%, and Firehouse Subs system-wide sales growth of 7.5%. For the first half, management said same-store sales were 3.5%, organic AOI growth was 8.5%, and adjusted EPS growth was nearly 14%. Guidance-wise, management reiterated full-year segment G&A of about $600 million to $620 million, net adjusted interest expense of $500 million to $520 million, 2026 CapEx and cash inducements of around $400 million, Tim Hortons supply chain margins roughly in line with 2025, and total RH AOI of roughly $10 million to $20 million. They also said FX moves imply about a $10 million AOI headwind and a $0.02 to $0.03 EPS headwind in the second half, and they still expect about $500 million of share repurchases for the full year.

Josh Kobza framed the quarter as evidence that RBI’s long-term strategy is taking hold, emphasizing that the business is delivering durable top-line and earnings growth across a diversified portfolio. He was especially upbeat on Burger King, saying the brand is still early in its turnaround and has more room to improve through image, operations and menu elevation. On Tim Hortons and Popeyes, his tone was more measured but still constructive, pointing to late-quarter improvement at Tims and a second-half recovery path at Popeyes.

Sami Siddiqui highlighted the financial translation of the stronger sales trend: 12.9% adjusted EPS growth to $1.07, supported by AOI growth and a $6 million year-over-year reduction in adjusted net interest expense. He said Q2 free cash flow was $501 million, including $62 million of CapEx and cash inducements and a $22 million benefit from swaps and hedges, and that RBI returned $435 million to shareholders, including $137 million of stock repurchases. He also noted $2.3 billion of total liquidity, including $1.1 billion of cash, and net leverage of 4.1x, with the company still working toward investment-grade leverage by 2028 or the low-to-mid-3x range. On guidance, he reiterated the full-year ranges for G&A, interest expense, CapEx/cash inducements, Tim Hortons supply chain margins, RH AOI, and the FX headwind.

Analysts pressed management on whether Burger King’s strength still has more room to run, and Josh and Patrick said yes, pointing to remaining runway in modern image remodels, service improvements and menu elevation chapters still ahead into 2027. Questions on Tim Hortons focused on whether the brand needs faster innovation and more share gains in a competitive Canada; management said the market is stable, Tims is already the #1 value leader, and a faster cadence of cold beverage and breakfast innovation should support second-half performance. On Popeyes, management said the turnaround is progressing as expected, with value, core menu focus and operations coaching improving traffic and product satisfaction, while refranchising at Burger King is behind the Investor Day schedule in Q2 but still on track, with buyer interest more than doubling and acceleration expected in the second half.