Restaurant Brands’ third quarter results were met with a negative market reaction as revenue came in below Wall Street’s expectations, despite non-GAAP earnings per share slightly beating consensus. Management attributed performance to resilient same-store sales growth and continued expansion of its global restaurant footprint. CEO Josh Kobza noted consistent sales gains at Burger King and Tim Hortons, highlighting “strong performances from Burger King U.S. and International and a return to solid growth at Tim Hortons.” The company also pointed to operational improvements and targeted menu innovation as key drivers, while acknowledging challenges in the Popeyes segment.
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Restaurant Brands (QSR) Q3 2026 highlights:
- Revenue $2.53 billion vs S&P analysts’ estimates of $2.55 billion (3.1% year-on-year growth, 1% miss)
- Adjusted EPS $1.10 vs S&P analysts’ estimates of $1.08 (1.4% beat)
- Adjusted EBITDA $829 million vs analyst estimates of $839.2 million (32.8% margin, 1.2% miss)
- Operating margin 27.6%, in line with the same quarter last year
- Locations 33,401 at quarter end, up from 32,423 in the same quarter last year
- Same-store sales rose 3.8% year on year, in line with the same quarter last year
- Market capitalization $25.22 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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 Q3 earnings call
- Dennis Geiger (UBS) asked about the sustainability of Burger King’s U.S. momentum and future growth levers. CEO Josh Kobza explained that additional remodels, ongoing menu upgrades, and operational consistency will drive continued outperformance, stating, “we have multiple years left…where we’re going to be able to surprise and excite our guests.”
- David Palmer (Evercore ISI) questioned international market trends and share gains. Kobza replied that while macro conditions are largely stable, Burger King and Popeyes are taking share in key markets, and China’s turnaround is a standout, contributing to stronger international growth.
- Brian Bittner (Oppenheimer) probed opportunities to lift Burger King’s average unit volumes (AUVs) and the timeline for remodel completion. Kobza and CFO Sami Siddiqui highlighted that remodels drive AUVs above $2 million and that most of the system should be modernized by 2028–2029.
- Danilo Gargiulo (Bernstein) inquired about Tim Hortons’ performance by daypart and future growth potential. Kobza discussed balanced growth across all dayparts, with innovation in cold beverages and PM food especially contributing to improved results and future ambitions to outperform peers.
- Andrew Charles (TD Cowen) asked about international AOI (adjusted operating income) margins. Siddiqui attributed recent margin deceleration to one-time legal expenses in the international segment, clarifying these are not expected to recur.
Catalysts in upcoming quarters
In upcoming quarters, the StockStory team will be watching (1) the pace of Burger King remodels and the resulting impact on store-level sales, (2) the expansion and uptake of new menu items and brand collaborations across all major brands, and (3) continued strength in international markets, especially Popeyes’ growth and profitability in China and Central Europe. We will also monitor franchisee investment appetite and the company’s progress toward a more franchised business model.
Restaurant Brands currently trades at $72.49, down from $74.53 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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