Restaurant Brands' fourth quarter was met with a negative market reaction, as investors focused on margin compression and mixed profitability trends despite revenue and adjusted earnings surpassing Wall Street expectations. Management attributed the quarter’s results to strong international performance, steady same-store sales, and resilient execution in core markets, but also acknowledged persistent cost pressures. CEO Josh Kobza highlighted the company’s ability to deliver “solid results” by focusing on the fundamentals, while Executive Chairman Patrick Doyle candidly described 2025 as “a demanding year for restaurant operators” with elevated costs and heightened consumer uncertainty.
Is now the time to buy QSR? Find out in our full research report (it’s free for active Edge members).
Restaurant Brands (QSR) Q4 CY2025 Highlights:
- Revenue: $2.47 billion vs analyst estimates of $2.41 billion (7.4% year-on-year growth, 2.1% beat)
- Adjusted EPS: $0.96 vs analyst estimates of $0.95 (1.3% beat)
- Adjusted EBITDA: $772 million vs analyst estimates of $768.5 million (31.3% margin, in line)
- Operating Margin: 25.2%, down from 27.7% in the same quarter last year
- Locations: 33,041 at quarter end, up from 32,125 in the same quarter last year
- Same-Store Sales rose 3.1% year on year, in line with the same quarter last year
- Market Capitalization: $23.85 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Restaurant Brands’s Q4 Earnings Call
- Danilo Gargiulo (AllianceBernstein) asked about comparable sales momentum in 2026 and the drivers for Tim Hortons and Burger King. CEO Josh Kobza pointed to fundamentals and ongoing menu and operational innovation as key levers.
- Brian Bittner (Oppenheimer) questioned the source of international momentum and whether it stemmed from market conditions or share gains. Kobza and Executive Chairman Patrick Doyle credited both supportive market trends and effective local execution for outperformance.
- Dennis Geiger (UBS) pressed for details on Burger King U.S. growth opportunities and franchisee sentiment. Kobza and CFO Sami A. Siddiqui cited modernized stores, franchisee engagement, and refranchising progress as positive factors.
- John William Ivankoe (JPMorgan) inquired about Popeyes’ recent underperformance and the sustainability of unit growth. Management acknowledged operational weaknesses, leadership changes, and reaffirmed commitment to core product focus and gradual growth.
- Christine Cho (Goldman Sachs) asked about initiatives to improve Burger King’s profitability beyond commodity cost normalization. Kobza discussed operational efficiencies, procurement, and the importance of profitable sales growth.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be monitoring (1) the pace of international restaurant expansion and success of new joint ventures, (2) evidence of margin stabilization as commodity costs evolve, and (3) execution of operational improvements at Popeyes and Burger King U.S. Progress in digital engagement and loyalty program adoption, particularly at Tim Hortons, will also be key areas of focus.
Restaurant Brands currently trades at $68.24, down from $70.70 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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