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RBI: Restaurant Brands International Delivers Solid Q2 Results

Restaurant Brands International (RBI) reported its Q2 2025 earnings, with solid progress in comp sales, net restaurant growth, and organic adjusted operating income growth. The company's adjusted EPS grew 9.2% to $0.94 per share, driven by AOI performance and a decrease in adjusted net interest expense. RBI's organic adjusted operating income growth of 5.7% was driven by cost discipline and a $15 million reduction in segment G&A. The company's net restaurant growth of 2.9% drove system-wide sales growth of 5.3%. Comp sales accelerated to 2.4% year-over-year, driven by strength in Tim Hortons and International segments.

QSR.TO

CAD 97.75

0.28%

A-Score: 5.8/10

Publication date: August 7, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Comp sales acceleration: 2.4% year-over-year driven by Tim Hortons and International segments.
  • Net restaurant growth: 2.9% net growth contributing to 5.3% system-wide sales growth.
  • Organic AOI growth: 5.7% driven by $15M reduction in segment G&A and cost discipline.
  • Adjusted EPS growth: 9.2% increase to $0.94 per share, reflecting strong AOI performance.
  • International segment performance: 10% system-wide sales growth, led by 5.4% net restaurant expansion.

Segment Performance

Tim Hortons delivered a strong quarter with Canadian comp sales accelerating to 3.6%, driven by a well-executed marketing calendar and improved operations. International delivered nearly 10% system-wide sales growth, supported by 5.4% net restaurant growth and 4.2% comp sales growth. Burger King's comp sales grew 1.5% in the US, modestly outperforming the burger QSR segment. Popeyes delivered system-wide sales growth of 1.9% in the US, while Firehouse Subs grew 6.3% driven by 6.4% net restaurant growth.

Financial Guidance

RBI expects to deliver at least 8% organic adjusted operating income growth in 2025. Adjusted net interest expense is expected to be around $520 million for the full year. CapEx and cash inducements are expected to be between $400 million to $450 million for the full year. As Sami A. Siddiqui, CEO, highlighted, "We're seeing 15% inflation on beef, which is 25% of our cost basket, but we're managing it. We're offsetting costs by optimizing other cost line items, and we believe this cycle will reverse."

Valuation Metrics

With a P/E Ratio of 24.63, the stock is trading at a premium to its peers. The company's ROIC of 6.99% and ROE of 26.89% indicate a strong return on investment. The dividend yield of 3.72% provides a decent income stream for investors. However, the stock's valuation seems to be priced in, given the company's guidance and current performance.

RBI's A-Score