01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Restaurant Brands International Inc. reported second-quarter 2025 total revenues of $2.41 billiona, up from $2.08 billion a year earlier, driven mainly by Company restaurant sales from restaurants acquired in the Carrols Acquisition and higher supply chain sales.
Income from operations fell to $483 millionb from $663 million, primarily because the prior-year period included a $79 million Carrols step acquisition gain and because of $132 million of foreign exchange losses recorded in other operating expenses. Net income attributable to common shareholders was $189 million, or $0.57 diluted per share, versus $280 million, or $0.88, in the prior-year quarter. Adjusted Operating Income, the company's segment income measure, rose to $668 million from $632 million, with increases in all segments.
For the six months ended June 30, 2025, cash provided by operating activities from continuing operations was $567 millionc, compared with $482 million a year earlier. Cash and cash equivalents were $1,026 million at June 30, 2025, and borrowing availability under the Revolving Credit Facility was $1,248 million. The company paid $0.62 per share dividends in the quarter and declared another $0.62 per share payable October 7, 2025.
Total debt, net, was $13,613 milliond at June 30, 2025. The filing also reports the acquisition of BK China for approximately $151 million, which is classified as discontinued operations and held for sale, with the company expecting to find a new controlling shareholder within twelve months.
On August 6, 2025, the board approved a new share repurchase authorization of up to $1,000 million running from September 15, 2025 to September 30, 2027. Two shareholder class action lawsuits remain pending, one related to Burger King franchise agreement hiring clauses and one alleging breach of fiduciary duty in the Carrols acquisition.
02—Key points
Key Highlights
- Total revenues rose to $2,410 million in Q2 2025 from $2,080 million in Q2 2024, with Company restaurant sales increasing to $600 million from $347 million.
- Income from operations declined to $483 million from $663 million, reflecting the non-recurrence of a $79 million Carrols step acquisition gain and other operating expenses of $149 million, including $132 million of foreign exchange losses.
- Net income attributable to common shareholders was $189 million ($0.57 diluted EPS) versus $280 million ($0.88 diluted EPS) in the prior-year quarter.
- Adjusted Operating Income increased to $668 million from $632 million, with segment income rising in TH, BK, PLK, FHS, INTL and RH.
- System-wide sales growth was 5.3% in Q2 2025 on a constant currency basis, and comparable sales grew 2.4%; system restaurant count reached 32,229.
- Cash and cash equivalents totaled $1,026 million and Revolving Credit Facility availability was $1,248 million at June 30, 2025.
- A new $1,000 million share repurchase authorization was approved August 6, 2025, effective September 15, 2025, replacing the prior authorization; no shares were repurchased in the first half of 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $2.41B$2.08B | +15.9% |
| Operating Expenses | $1.93B$1.42B | +36.0% |
| Operating Income | $483.00M$663.00M | −27.1% |
| Net Income | $189.00M$280.00M | −32.5% |
| EPS (Basic) | $0.58$0.89 | −34.8% |
| EPS (Diluted) | $0.57$0.88 | −35.2% |
| Shares Outstanding (Basic) | 328.00M317.00M | +3.5% |
| Shares Outstanding (Diluted) | 457.00M453.00M | +0.9% |
05—Questions
Frequently Asked Questions
Why did operating income decline despite higher revenues?
Income from operations fell $180 million in the quarter, primarily because the prior-year period included a $79 million gain from the Carrols Acquisition and because the current period recorded $132 million of net foreign exchange losses within other operating expenses. Segment income increased in every segment.
What is driving the revenue increase?
Total revenues increased mainly due to restaurants acquired from franchisees, mainly related to the Carrols Acquisition, and higher supply chain sales, partially offset by unfavorable foreign currency impacts. Company restaurant sales rose to $600 million from $347 million.
What is the status of BK China?
The company acquired substantially all remaining equity of BK China on February 14, 2025 for approximately $151 million in cash. BK China is classified as held for sale and reported as discontinued operations, and the company is in discussions with potential partners to acquire the controlling interest and expects this to occur within twelve months of the acquisition.
What shareholder returns were announced?
The company paid a $0.62 per share dividend on July 8, 2025 and declared another $0.62 per share payable October 7, 2025. On August 6, 2025, the board approved a share repurchase authorization of up to $1,000 million running from September 15, 2025 to September 30, 2027. No shares were repurchased in the first six months of 2025.
What legal matters are pending?
A consolidated class action alleging Sherman Act violations through no-solicitation and no-hiring clauses in Burger King franchise agreements remains pending, with the company intending to vigorously defend it. A Delaware Court of Chancery complaint by former Carrols shareholders alleging breach of fiduciary duty and unjust enrichment was also pending, and the court denied RBI's motion to dismiss on July 22, 2025. The company is unable to predict the outcome of either case.
06—Continue