#United States #Miami #Tim Hortons #Restaurant Brands #RBI

Restaurant Brands International Reports Second Quarter 2025 Results

Restaurant Brands International Inc. (RBI), the parent company of well-known brands like Tim Hortons and Burger King, has announced its financial results for the second quarter ending June 30, 2025. With continued growth in system-wide sales, RBI remains optimistic about its strategic initiatives.

Sales Growth and Operational Highlights

In the second quarter, RBI experienced a 5.3% year-over-year increase in consolidated system-wide sales, which reached approximately $11.85 billion. Notably, the international segment saw an impressive 9.8% growth, reflecting strong performances across its global markets. Comparable sales also showed positive momentum, with a 2.4% increase, fueled mainly by Tim Hortons Canada and international franchises of Burger King that reported 3.6% and 4.1% increases, respectively.

Josh Kobza, the CEO of RBI, commented on the quarter's success, stating, "We made significant progress in advancing our strategic priorities, which led to improved sales trends driven by operational initiatives and effective marketing. This positive momentum gives us confidence in achieving our target of 8%+ organic Adjusted Operating Income growth for 2025."

Financial Overview

The financial results also showcased total revenues of approximately $2.41 billion, an increase from $2.08 billion in the prior year. However, net income from continuing operations recorded a decline, amounting to $264 million, compared to $399 million in Q2 2024.

Adjusted Operating Income (AOI) reached $668 million, and the company pinpointed organic AOI growth at 5.7% year-over-year. Adjusted EBITDA was reported at $762 million, continuing the trend of consistent improvement.

In terms of earnings, diluted earnings per share from continuing operations stood at $0.58, reflecting a decrease from $0.88 during the same quarter last year. Despite these challenges, RBI is focusing on optimizing its franchises and enhancing the guest experience through strategic marketing and operational efficiencies.

Segment Highlights

RBI operates through several key segments, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs, which are key to the company's diversified portfolio. Here are some highlights from each segment:

• - Tim Hortons: Achieved system-wide sales growth of 3.9%. Comparable sales grew by 3.4%, contributing significantly to RBI's overall performance. Net restaurant growth was modest at 0.3%.
• - Burger King: Experienced a 1.0% increase in system-wide sales, with comparable sales up by 1.3%. However, the segment recognized a decline in net restaurant count.
• - Popeyes: Reported an increase of 1.6% in system-wide sales growth, continuing its trend of positive development.
• - Firehouse Subs: Stood out with a notable 6.3% growth, showcasing its popularity and market penetration.

Shareholder Returns and Future Outlook

On the financial call, RBI's board declared a $0.62 dividend per common share for Q3 2025, showcasing their commitment to returning value to shareholders. Furthermore, the board authorized a share repurchase program up to $1 billion over two years, reinforcing their confidence in future performance.

As RBI navigates through 2025, they continue to adapt their strategies to handle macroeconomic pressures, currency fluctuations, and evolving market trends. Investments in technology and franchisee support are prioritized to enhance operational effectiveness.

RBI remains committed to its long-term growth algorithm, primarily aiming for 3%+ comparable sales and 8%+ organic Adjusted Operating Income growth moving forward. As the landscape changes, RBI's methodologies and strategic planning will adapt to meet the evolving preferences of consumers and the challenges of the industry.

In conclusion, the second-quarter results reflect RBI’s resilience and proactive approach towards growth, with the company remaining focused on building a robust portfolio and ensuring customer satisfaction across its brand spectrum.