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• Consolidated Comparable Sales: 0.1%, or just over 1% excluding leap day impact.

• Net Restaurant Growth: 3.3%.

• System-wide Sales Growth: 2.8%.

• Organic Adjusted Operating Income Growth: 2.6%.

• Tim Hortons Canada Comparable Sales: 0.1%, or approximately 1.2% after adjusting for leap day.

• International Comparable Sales: 2.6%, or roughly 3.7% excluding leap day.

• International System-wide Sales Growth: 8.6%.

• Burger King US Comparable Sales: 1.1% decrease, or relatively flat adjusting for leap day.

• Popeyes US and Canada Comparable Sales: Declined 4%, or down roughly 2.9% adjusted for leap day.

• Popeyes US and Canada Net Restaurant Growth: 3%.

• Firehouse Subs Comparable Sales: 0.6%, or nearly 2% excluding leap day.

• Firehouse Subs Net Restaurant Growth: 5.9%.

• Firehouse Subs System-wide Sales Growth: 7.3%.

• Adjusted EPS: Increased to $0.75 per share from $0.73 per share last year.

• Free Cash Flow: $89 million, inclusive of approximately $35 million in cash benefits from hedges.

• Leverage Ratio: 4.7 times.

• Liquidity: $2.1 billion, including approximately $900 million of cash.

• Warning! GuruFocus has detected 5 Warning Signs with QSR.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Restaurant Brands International Inc (NYSE:QSR) reported a system-wide sales growth of 2.8% and organic adjusted operating income growth of 2.6% in Q1 2025.

• Tim Hortons Canada showed resilience with flat comparable sales, supported by innovative promotions and operational improvements.

• The international segment delivered 2.6% comparable sales growth, with strong performances in key markets like the UK, Germany, Brazil, Japan, and Australia.

• Burger King US outperformed the broader burger QSR category, driven by operational improvements and strategic marketing initiatives.

• Popeyes is focusing on operational consistency and modernizing its restaurant base, with plans to roll out easy-to-run kitchen upgrades and remodels.

Negative Points

• Q1 2025 was anticipated to be the softest quarter of the year, with macroeconomic pressures contributing to a slower start.

• Burger King US saw a 1.1% decrease in comparable sales, highlighting ongoing challenges in the market.

• Popeyes US and Canada experienced a 4% decline in comparable sales, attributed to the absence of a Super Bowl ad and increased competition.

• The company is facing a $19 million year-over-year headwind due to the loss of royalties and fees from Burger King China, which is now classified as held for sale.

• Restaurant Brands International Inc (NYSE:QSR) revised its net restaurant growth expectations for 2025, primarily due to challenges in the Burger King China segment.