Restaurant Brands International (RBI), the parent company of Burger King, Tim Hortons, and Popeyes, exceeded Wall Street expectations in its fourth-quarter 2025 earnings report, released Thursday, . The results were largely driven by robust international sales, offsetting a weaker performance from Popeyes.
RBI reported adjusted earnings per share of 96 cents, surpassing the 95 cents anticipated by analysts surveyed by LSEG. Revenue reached $2.47 billion, also exceeding expectations of $2.41 billion. However, net income attributable to shareholders declined to $113 million, or 34 cents per share, compared to $259 million, or 79 cents per share, in the same quarter of the previous year.
The company’s overall system-wide sales grew by 5.6% in the fourth quarter and 5.4% for the full year 2024, demonstrating continued momentum despite macroeconomic headwinds. Organic revenue increased by 6.5% when excluding currency fluctuations and planned restaurant refranchising.
International Growth Fuels Positive Results
A key driver of RBI’s success was strong international performance. Company-wide same-store sales increased by 3.1%, with international locations leading the way, posting a 6.1% increase. Burger King restaurants outside of the U.S. And Canada were particularly strong, with same-store sales climbing 5.8%, significantly above the 3.7% growth predicted by analysts.
RBI is actively pursuing expansion in international markets. In November, the company announced a joint venture for Burger King China with CPE, a Chinese alternative asset manager. The deal, finalized in late January, sees CPE holding approximately 83% ownership and RBI retaining a 17% stake, along with a board seat. This strategic move aims to accelerate growth in the crucial Chinese market.
Mixed Performance Across Brands
While Burger King and Tim Hortons contributed positively to the overall results, performance varied across RBI’s portfolio. Tim Hortons reported same-store sales growth of 2.9%, slightly below the 3.8% expected by Wall Street. Tim Hortons accounted for 46% of RBI’s total revenue during the quarter.
Burger King saw overall same-store sales growth of 2.7%, exceeding analyst estimates of 2.4%. However, Popeyes lagged behind, experiencing a 4.8% decline in same-store sales, a steeper drop than the 2.4% decrease analysts had forecast.
Efforts to Revitalize Popeyes
Recognizing the challenges at Popeyes, RBI has initiated efforts to revitalize the brand. In November, Peter Perdue, a veteran of Burger King, was appointed to lead Popeyes’ U.S. And Canadian operations. More recently, in January, Matt Rubin, also a Popeyes veteran, was named the chain’s chief marketing officer. These leadership changes signal a commitment to addressing the issues impacting Popeyes’ performance.
Investor Day to Outline Future Strategy
RBI plans to provide further details on its growth strategies at an investor day scheduled for in Miami. Investors will be looking for insights into the company’s plans to address the underperformance at Popeyes and capitalize on opportunities in international markets.
The company’s ability to maintain momentum in international markets and successfully turn around Popeyes will be crucial for its continued success. The focus on value-focused menu options, as seen with Burger King’s “2 for $5” and “3 for $7” promotions, appears to be resonating with consumers, but sustained growth will require ongoing innovation and adaptation to changing market conditions.
The earnings report underscores the ongoing trend in the fast-food industry of prioritizing affordability to attract budget-conscious consumers. Similar strategies employed by McDonald’s have also yielded positive results, demonstrating the importance of value offerings in the current economic climate.
