Restaurant Brands International, the parent company of Burger King, Tim Hortons, and Popeyes, announced first-quarter 2026 financial results that surpassed Wall Street's projections for both earnings and revenue. The company's performance was significantly bolstered by a notable turnaround at Burger King's U.S. operations and continued robust growth in its international markets.
For the first quarter, Restaurant Brands International reported adjusted earnings per share of 86 cents, exceeding the 82 cents anticipated by analysts. Revenue for the period reached $2.26 billion, also topping the consensus estimate of $2.24 billion. The company's net income attributable to common shareholders saw a substantial increase, rising to $338 million, or 97 cents per share, compared to $159 million, or 49 cents per share, in the same quarter of the previous year.
Overall same-store sales for Restaurant Brands increased by 3.2%. This growth was primarily driven by strong performance at Burger King's domestic locations and the company's extensive international restaurant portfolio. International same-store sales, excluding the U.S. and Canada, experienced a significant jump of 5.7%, outpacing the 5.1% growth projected by analysts. The international Burger King segment, which constitutes a large portion of the company's global presence, reported a 5.4% increase in same-store sales.
Burger King's U.S. same-store sales showed a remarkable improvement, growing by 5.8%. This figure significantly exceeded the 3.5% increase estimated by analysts. The revitalization efforts at Burger King U.S. have included restaurant renovations, enhancements to core menu ingredients like the Whopper, and a consistent focus on offering value-driven promotions. Patrick Doyle, Chair of Restaurant Brands, highlighted the success, stating that Burger King is "putting up great numbers" while other industry players are "clearly getting worse and they are losing market share."
Tim Hortons, the Canadian coffee and donut chain, saw its same-store sales increase by 1.6%. This figure fell short of the 2.5% growth anticipated by analysts. CEO Josh Kobza attributed the slower growth to challenging weather conditions in January, including snowstorms, and broader economic concerns among consumers. Despite these headwinds, Kobza noted that Tim Hortons still managed to outperform the general coffee category in Canada.
Popeyes Louisiana Kitchen continued to be a laggard within the company's brand portfolio. The fried chicken chain reported a decline of 6.5% in same-store sales, a steeper contraction than the 1.5% decrease forecast by Wall Street. This represents one of the largest quarterly sales drops for Popeyes in recent years. The company is facing increased competition and a more value-conscious consumer base.
To address the challenges at Popeyes, the company is implementing strategies focused on operational improvements and reinforcing its core menu offerings. Management expressed optimism that same-store sales for Popeyes will begin to show positive growth in the latter half of the current year. This turnaround is a key focus for the company moving forward.
Despite the overall positive earnings report, shares of Restaurant Brands International experienced a decline of approximately 5% in morning trading. Potential headwinds mentioned by the company include persistently high beef costs, which are expected to remain elevated longer than initially anticipated, and a softening consumer sentiment potentially influenced by geopolitical events.
