Restaurant Brands International (TSX:QSR, NYSE:QSR) reported better-than-expected financial results for the first quarter, supported by international expansion and continued improvement in its Burger King US operations.
Despite the earnings beat, shares fell 5.5% on weakness in its Popeyes and Tim Hortons businesses.
For the quarter ended March 31, 2026, adjusted earnings per share came in at $0.86, ahead of estimates of $0.82.
Revenue totaled $2.26 billion, slightly above the $2.24 billion consensus forecast.
Operationally, the company reported system-wide sales growth of 6.2%, up from 2.8% a year earlier, with system-wide sales reaching $11.51 billion.
Comparable sales increased 3.2%, compared with 0.1% in the same quarter last year.
Net restaurant growth slowed to 2.6% from 3.3%, bringing the total system restaurant count to 32,985.
By segment, Burger King continued to show relative strength, contributing to overall performance improvement, particularly in the US market turnaround strategy. US comparable sales were up 5.8%, above expectations of about 3%, while international comparable sales were up 5.4%.
However, Popeyes reported a 6.5% decline in same-store sales, significantly below analyst expectations for a 1.5% decline.
Tim Hortons also underperformed expectations, posting 1.6% same-store sales growth compared with the 2.5% increase expected by analysts.
"We delivered a strong start to the year, converting solid topline results into double-digit earnings growth while returning capital to shareholders through the resumption of share repurchases and our growing dividend,” RBI CEO Josh Kobza said in the earnings release.
“At Burger King, our results reflect several years of hard work by our franchisees and teams to elevate the guest experience, driving stronger engagement and clear outperformance.