Restaurant Brands International (TSX:QSR, NYSE:QSR) delivered mixed results for the second quarter, showing strong top-line growth but weaker profitability.
The parent company of Tim Hortons, Burger King, Popeyes, and Firehouse Subs reported an increase in revenue to $2.41 billion from $2.08 billion a year earlier, beating Wall Street expectations of $2.34 billion.
System-wide sales grew 5.3% year-over-year, driven by a 9.8% increase internationally.
Comparable sales rose 2.4%, including a 4.1% increase at Burger King International and a 3.6% gain at Tim Hortons Canada.
Despite the sales gains, income from operations fell 27.2% to $483 million from $663 million in the prior-year quarter.
Adjusted earnings per share rose 9.2% year-over-year to $0.94, missing analyst expectations of approximately $0.98.
"We made great progress in the second quarter advancing our strategic priorities, with improved sales trends and strong execution led by our two largest businesses, Tim Hortons and International,” RBI CEO Josh Kobza said.
“With positive momentum heading into the back half of the year, we remain confident in our ability to deliver 8%+ organic Adjusted Operating Income growth in 2025."
Shares of RBI traded down 4.1% at $66 on the earnings miss.