Rising Burger King sales powered an earnings beat for Restaurant Brands

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Burger King U.S. comparable sales rose 8.4% in the third quarter, while Popeyes U.S. comparable sales fell 2.2%

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Restaurant Brands $QSR International, the parent of Burger King, Tim Hortons, Popeyes and Firehouse Subs, reported third-quarter adjusted earnings of $1.10 a share on Thursday, up from $1.03 in the third quarter of 2025, as U.S. comparable sales at Burger King rose 8.4%.

That topped analyst expectations of $1.08 a share, according to The Wall Street Journal, and $1.09, according to CNBC. Total revenue came in at $2.53 billion, a 3.1% increase. That missed analyst expectations of $2.55 billion, according to The Wall Street Journal, and $2.54 billion, according to CNBC.

Net income from continuing operations climbed to $704 million, or $1.54 a diluted share, from $440 million, or 96 cents a share. The company said the change in its effective tax rate stemmed from discrete tax benefits tied to intra-group reorganizations undertaken in 2026.

Global comparable sales rose 3.8%, versus 4.0% in the year-ago quarter. Burger King’s U.S. comparable sales growth of 8.4% compared with 3.2% in the year-ago quarter, and the brand’s segment adjusted operating income increased to $136 million from $123 million. Tim Hortons comparable sales rose 1.5%, with Canada up 1.8%, and comparable sales in the International segment rose 3.9%.

CEO Josh Kobza said in a statement that global comparable sales above 3% were "led by outperformance at Burger King and steady growth at International and Tim Hortons."

Popeyes lagged. Its U.S. comparable sales fell 2.2%, and the brand's adjusted operating income dropped to $58 million from $63 million. The company attributed the decline to lower comparable sales and higher general and administrative costs.

Kobza said on the earnings call that Popeyes needs a longer runway than the company had projected before its same-store sales start growing again, even as customer traffic improves, according to CNBC. The company had forecast growth in the second half of 2026. Kobza said the $6 Big Box promotion, which came back in September, lifted sales by less than anticipated, and a pared-back wings offering is dragging on results for now, according to CNBC.

The company said it remains on track for 8% organic adjusted operating income growth in 2026. Organic adjusted operating income rose 6.7% in the third quarter.

Burger King is selling company-owned restaurants to smaller, local franchisees as part of its U.S. turnaround, with roughly 200 locations expected to change hands by year-end. Company-owned U.S. Burger King restaurants in the restaurant holdings segment numbered 950 on Sept. 30, down from 1,012 a year ago.

As of Sept. 30, the company had funded $198 million of up to $550 million planned for remodels, relocations, technology and equipment under Burger King's "Reclaim the Flame" plan.

Restaurant Brands stock slipped roughly 1% during Thursday's morning session.

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