Burger King US Sales Jump 8.4% While Popeyes Slips 2.2% For Restaurant Brands
Restaurant Brands' global comparable sales rose 3.8% in the third quarter, and a $133 million tax benefit lifted net income to $704 million.
Restaurant Brands International, which owns and franchises Tim Hortons, Burger King, Popeyes and Firehouse Subs, said Thursday that global comparable sales rose 3.8% in the third quarter, led by an 8.4% gain at Burger King US. Popeyes US went the other way, with comparable sales down 2.2%.
Burger King pulls ahead, Popeyes lags
Burger King's US comparable sales, which measure sales at restaurants open at least about 13 months, compare with a 3.2% gain a year earlier. Tim Hortons Canada rose 1.8%, and International comparable sales rose 3.9%. At Popeyes, the US decline compares with a 2.0% drop a year earlier, and the brand's US comparable sales are down 4.6% for the first nine months.
Popeyes' adjusted operating income fell to $58 million from $63 million, which the company tied to weaker comparable sales and higher segment overhead. Burger King's rose to $136 million from $123 million.
Consolidated system-wide sales grew 6.2% on a constant-currency basis, including 9.0% in International.
A tax benefit lifts the bottom line
Net income from continuing operations reached $704 million, against $440 million a year earlier. The company booked a $133 million income tax benefit, which it attributed to discrete tax benefits from intra-group reorganizations undertaken in 2026.
Adjusted operating income, which strips out items such as acquisition-related amortization and other operating income or expense, rose to $737 million from $702 million. Adjusted earnings per share were $1.10, up from $1.03. Net leverage, net debt relative to adjusted EBITDA, was 4.0 times at September 30, down from 4.4 times a year earlier.
CEO Josh Kobza said the quarter showed "over 3% global comparable sales led by outperformance at Burger King."
Guidance holds and cash goes back
RBI said it remains on track for 8% organic adjusted operating income growth in 2026 and kept its other outlook items, including adjusted net interest expense of $500 million to $520 million. It has returned $1.3 billion to shareholders year to date through dividends and buybacks.
Burger King's "Reclaim the Flame" plan commits up to $700 million through year-end 2028. As of September 30, the company had funded $198 million of the up to $550 million planned for remodels, relocations and kitchen equipment.
Tim Hortons and Burger King will host conventions in the fourth quarter, which shifts the timing of franchise revenue. A fourth-quarter dividend of $0.65 per share is payable January 5, 2027.
Burger King's remodel program still has $352 million of its planned spending ahead of it, against the $198 million funded so far.
