Restaurant Brands International Inc.

Q2 FY26Hotels, Restaurants and Leisure

Restaurant Brands International Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹74

Market cap₹33.9K Cr

P/E24.3

Updated29 May 2026

Read5 min read

What the Q2 FY26 call signalled

1 of 3 strong

RevenueRank 3

MarginRank 3

CapexYes

Not discussed on this call: fundraise, order book.

The short version

- Expectation to sustain approximately 3% same-store sales growth on average. - Targeting 8% organic AOI (Adjusted Operating Income) growth. - Plan to deliver roughly 1,800 net new restaurants per year by 2028: - 300-400 from U.S. - Restaurant Brands International (RBI) expects to continue delivering approximately 8% organic Adjusted Operating Income (AOI) growth in 2026.

From Restaurant Brands International Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 3

Expectation to sustain approximately 3% same-store sales growth on average.
Targeting 8% organic AOI (Adjusted Operating Income) growth.
Plan to deliver roughly 1,800 net new restaurants per year by 2028:
- 300-400 from U.S. and Canada.
- 300-400 from three brands in China.
- About 1,100 from International markets, including 700 from top 10 growth markets.
Confident in positive momentum across Burger King U.S. with mid-single-digit same-store sales growth.
Popeyes expects a return to positive comps in the second half of 2026, supported by franchisee alignment and operational improvements.
International business is delivering strong growth, with over 5% comparable sales and system-wide sales growth of 11%, driven by innovation and value.
Tim Hortons focusing on defending and growing coffee and breakfast categories, with growth in cold beverages and PM daypart expansion.
Overall system-wide sales growth of 6.2% in Q1, with strong operational execution and franchisee engagement supporting growth.

Profitability & Margins

Restaurant Brands International (RBI) expects to continue delivering approximately 8% organic Adjusted Operating Income (AOI) growth in 2026.
Comparable sales growth target is anchored around 3% annually, with this quarter achieving 3.2%.
Net restaurant growth (NRG) is expected to accelerate in 2026, aiming for 5%-plus NRG by 2028.
Adjusted EPS increased 14.6% in Q1 2026 and RBI targets mid-teens EPS growth, supported by AOI growth and disciplined cost management.
Share repurchases restarted in 2026 with an aim to repurchase around $500 million in shares for the full year, reflecting confidence in business momentum.
International segment showing strong momentum with over 5% comparable sales and net restaurant growth of 4.5%.
Beef cost inflation pressures expected to ease closer to 2027, aiding margin improvement.
Franchisee alignment and improved operations at Burger King U.S. are expected to sustain low-to-mid single-digit same-store sales growth going forward.

See what Restaurant Brands International Inc. said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

Tim Hortons plans to increase investments in Canada in 2026, including ramping up remodels with over 300 planned, involving hundreds of millions of dollars.
The company will also increase the pace of new restaurant openings in Canada, expanding into new markets and communities.
Burger King China joint venture with CPE includes a $350 million primary capital injection to fund development over the next 5 years.
Continued investments in international start-up businesses (e.g., Popeyes China) until transferring ownership to local partners.
Approximately $400 million expected for 2026 capital expenditures and cash inducements (tenant inducements, incentives).
Accelerated remodeling at Burger King U.S. is underway, focused on modernizing restaurants to enhance guest experience and drive momentum.
Investments enable new innovations, like rolling out fountain drink equipment at Tim Hortons for operational efficiency and beverage growth.

Fundraising & Capital Structure

The company is focused on achieving corporate investment-grade leverage by 2028.
They are on track to simplify the business and sunset restaurant holdings by end of 2027.
Adjusted net interest expense is expected to stay flat year-over-year in the $500 million to $520 million range, based on a mid-3% average SOFR rate.
There is no specific mention of new fundraising through debt or equity in the current quarter.
Free cash flow generation and resumed share repurchases ($60 million through April) signal confidence and suggest internal funding focus.
No explicit plans for new debt or equity fundraising announced; emphasis is on disciplined capital allocation, improving leverage, and shareholder returns.

See what Restaurant Brands International Inc. said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The provided transcript does not contain explicit details about the company's current or expected order book or pending orders. However, relevant insights related to business momentum and growth opportunities include: - Strong franchisee interest in new Burger King U.S. restaurants, with numerous weekly applications and qualified partners. - Positive momentum in international markets, including China with new partnership and capital injection supporting growth. - Continued rollout of innovations like Tim Hortons’ fountain beverage equipment, expected to complete over next few quarters. - Confidence in achieving over 3% same-store sales growth, with stable or improving operational metrics. - Refranchising efforts accelerating with high-quality new franchise operators improving performance in Burger King system. No specific figures on order book or pending orders were disclosed in the excerpts available.

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Frequently Asked Questions

What were Restaurant Brands International Inc. Q2 FY26 results?

What is Restaurant Brands International Inc. share price analysis?

Restaurant Brands International Inc. currently shows a below-average growth signal. The stock trades at a P/E of 24.3 with a market cap of $33,910. Investors should review the full earnings analysis for detailed insights.

Is Restaurant Brands International Inc. planning capital expenditure?

- Tim Hortons plans to increase investments in Canada in 2026, including ramping up remodels with over 300 planned, involving hundreds of millions of dollars. - The company will also increase the pace of new restaurant openings in Canada, expanding into new markets and communities. - Burger King China joint venture with CPE includes a $350 million primary capital injection to fund development over the next 5 years. - Continued investments in international start-up businesses (e.g., Popeyes China) until transferring ownership to local partners. - Approximately $400 million expected for 2026 capital expenditures and cash inducements (tenant inducements, incentives). - Accelerated remodeling at Burger King U.S.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.