Restaurant Brands Paid $214 Million In Cash To Retire 2.8 Million Partnership Units
The Tim Hortons and Burger King owner also posted a $133 million tax benefit in the third quarter, versus $94 million of expense a year earlier.
Restaurant Brands International, the owner of Tim Hortons, Burger King, Popeyes and Firehouse Subs, repurchased 2,784,549 Partnership exchangeable units for about $214 million in cash during the first nine months of 2026, according to its 10-Q filed Thursday. The cash settlement is new since the prior quarterly report, which described only share-settled exchanges.
Cash instead of new shares
Holders sent exchange notices on 6,430,266 units over the nine months. The company met them by paying cash for 2,784,549 units and swapping 3,645,717 for the same number of newly issued common shares.
The second-quarter filing had reported 3,603,172 units exchanged through June 30, with no cash component. Each unit converts one for one into a common share, and as general partner the company can choose to settle in cash instead. Unit holders' stake slipped to about 22.8% from 24.0% at the end of 2025.
A tax benefit lifts profit
Income taxes from continuing operations swung to a $133 million benefit in the third quarter from $94 million of expense a year earlier. Net income rose to $704 million from $436 million. The company attributes the lower tax rate to deferred tax movements from intra-group reorganizations undertaken in 2026.
Financing outflows reached $1,332 million for the nine months, up from $952 million, with $444 million spent on share and unit repurchases and none a year earlier. The company also repurchased 3,101,650 common shares for $232 million over the period.
A franchisor with 33,401 restaurants
RBI franchises more than 95% of its restaurants, earning fees, royalties and rent. It had 33,401 restaurants at September 30. Third-quarter system-wide sales growth was 6.2%, and comparable sales rose 3.8%, according to its earnings release.
Buyback room remains
Through October 23, the company bought back another 235,276 shares for $17 million, leaving $751 million under its $1,000 million authorization. Its market value was $26.0 billion at Thursday's close.
The board has declared a $0.65 dividend per common share, payable January 5, 2027 to holders of record on December 22.
Sources
- 10-Q Filing — Restaurant Brands International (QSR) — SEC EDGAR
- 10-Q Filing — Restaurant Brands International (QSR), Q2 FY2026 filed 2026-08-06 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, qsr_2026930xpressrelease.htm) — Restaurant Brands International, filed 2026-10-29 — SEC EDGAR
- Restaurant Brands International (QSR) Q3 2026 earnings — CNBC
- Restaurant Brands: Q3 Earnings Snapshot — Associated Press
- Restaurant Brands tops sales estimates as Burger King deals draw diners in U.S. - The Globe and Mail — Reuters
- RBI reports Q3 profit and sales up from year ago — Bloomberg
- Restaurant Brands Tops Sales Estimates as Burger King Deals Draw Diners — Reuters
