Restaurant Brands’ first quarter was marked by strong international and Burger King U.S. performance, but the market reacted negatively to the results. Management attributed the quarter’s progress to operational improvements, enhanced guest experience, and ongoing menu innovation. CEO Josh Kobza emphasized the importance of “building something durable for our franchisees, our guests and our shareholders,” citing Burger King’s nearly 6% comparable sales growth in the U.S. as a standout driver. At the same time, leadership acknowledged operational challenges at Popeyes and macro softness in Canada, impacting overall results.
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Restaurant Brands (QSR) Q1 CY2026 Highlights:
- Revenue: $2.26 billion vs analyst estimates of $2.24 billion (7.3% year-on-year growth, 0.9% beat)
- Adjusted EPS: $0.86 vs analyst estimates of $0.83 (4% beat)
- Adjusted EBITDA: $706 million vs analyst estimates of $695.4 million (31.2% margin, 1.5% beat)
- Operating Margin: 26.8%, up from 20.6% in the same quarter last year
- Locations: 32,985 at quarter end, up from 32,149 in the same quarter last year
- Same-Store Sales rose 3.2% year on year (0.1% in the same quarter last year)
- Market Capitalization: $27.17 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 Q1 Earnings Call
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Dennis Geiger (UBS) asked how Tim Hortons is managing the impact of macroeconomic challenges and consumer confidence in Canada. CEO Josh Kobza outlined plans for increased investment in remodels and store openings, and a focus on partnerships and innovation to support long-term growth.
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David Palmer (Evercore ISI) inquired about international market momentum and macro risks. Kobza described continued strength across regions, especially Asia and Latin America, highlighting double-digit same-store sales in China and ongoing vigilance regarding energy costs in Europe.
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Danilo Gargiulo (Bernstein) questioned the sustainability of Burger King U.S. growth. Kobza and Executive Chairman Patrick Doyle emphasized foundational improvements and a roadmap for ongoing menu and operational enhancements, aiming to consistently outperform the burger QSR segment.
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Brian Bittner (Oppenheimer) raised concerns about potential disruption from Burger King U.S. refranchising. Kobza stressed that operator quality is the top priority, and early results from new franchisees have been positive, with strong internal and external interest in franchise opportunities.
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Sara Senatore (Bank of America) sought clarity on beef cost inflation and competitive intensity in the chicken segment. CFO Sami Siddiqui confirmed franchisee margin pressure from high beef costs, while Kobza detailed Popeyes’ operational focus and confidence in the long-term opportunity within the chicken category.
Catalysts in Upcoming Quarters
Over the coming quarters, our team will closely monitor (1) the pace of Burger King U.S. restaurant remodels and their impact on guest satisfaction and repeat visits, (2) operational improvements and sales recovery efforts at Popeyes, and (3) the rollout and early results of Tim Hortons’ loyalty partnership with Canadian Tire. Progress in international expansion, especially in China, will also be a key signpost for sustained growth.
Restaurant Brands currently trades at $78.30, down from $81.67 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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