01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Restaurant Brands International Inc. (QSR) reported third-quarter 2025 total revenues of $2.45 billiona, up from $2.29 billion a year earlier, with income from operations of $663 million versus $577 million.
Net income attributable to common shareholders was $315 millionb, or $0.96 per diluted share, compared with $252 million, or $0.79 per share, in the prior-year quarter. Nine-month results were weaker: total revenues rose to $6.97 billion from $6.11 billion, but income from operations fell to $1.58 billion from $1.78 billion, driven mainly by a $208 million foreign exchange remeasurement loss within other operating expenses and the non-recurrence of a $79 million Carrols step acquisition gain. Net income attributable to common shareholders was $663 million for the nine months, compared with $762 million.
Adjusted Operating Income, the company's segment income measure, increased 8% to $702 millionc in the quarter and 5% to $1.91 billion for the nine months, with each of the five franchisor segments (TH, BK, PLK, FHS, INTL) reporting higher segment income. System-wide sales growth was 6.9% in the quarter and comparable sales rose 4.0%. Cash provided by operating activities was $1.16 billion for the nine months, and the company had $1.21 billion in cash and cash equivalents at September 30, 2025, with $1.25 billion of revolver availability.
The filing also details the BK China acquisition for approximately $151 milliond, which is now held for sale and reported as discontinued operations, and the company's pending search for a new controlling shareholder. A new $1.0 billion share repurchase authorization runs through September 30, 2027, and the board declared a $0.62 per share dividend payable January 6, 2026. Two shareholder class actions remain pending, one relating to Burger King franchise no-hire clauses and one relating to the Carrols acquisition, and the company says it cannot predict their outcomes.
02—Key points
Key Highlights
- Third-quarter total revenues were $2.45 billion, up from $2.29 billion, and income from operations rose to $663 million from $577 million.
- Nine-month income from operations declined to $1.58 billion from $1.78 billion, primarily due to a $208 million foreign exchange remeasurement loss and the non-recurrence of a $79 million Carrols step acquisition gain.
- Adjusted Operating Income grew to $702 million in the quarter (from $652 million) and $1.91 billion for the nine months (from $1.82 billion), with all five franchisor segments reporting higher segment income.
- Diluted net income per share was $0.96 for the quarter versus $0.79 a year earlier, and $2.01 for the nine months versus $2.39.
- Consolidated system-wide sales growth was 6.9% in the quarter and comparable sales were up 4.0%, led by a 12.1% increase in INTL system-wide sales growth.
- The company returned cash through a $0.62 quarterly dividend and a new $1.0 billion share repurchase authorization, while holding $1.21 billion in cash and $13.4 billion in long-term debt at September 30, 2025.
- BK China was acquired for approximately $151 million and is classified as held for sale and discontinued operations pending a new controlling shareholder.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.45B$2.29B | +6.9% |
| Operating Expenses | $1.79B$1.71B | +4.2% |
| Operating Income | $663.00M$577.00M | +14.9% |
| Net Income | $315.00M$252.00M | +25.0% |
| EPS (Basic) | $0.96$0.79 | +21.5% |
| EPS (Diluted) | $0.96$0.79 | +21.5% |
| Shares Outstanding (Basic) | 328.00M319.00M | +2.8% |
| Shares Outstanding (Diluted) | 457.00M454.00M | +0.7% |
05—Questions
Frequently Asked Questions
Why did nine-month income from operations decline despite higher revenue?
The filing attributes the decline primarily to an increase in net losses on foreign exchange from remeasurement of foreign denominated assets and liabilities, mainly intercompany financing, which totaled $208 million for the nine months versus $15 million in the prior year. It also cites the non-recurrence of a $79 million gain recognized in 2024 in connection with the Carrols Acquisition and an unfavorable FX Impact, partially offset by higher segment income.
What drove the increase in third-quarter revenue and profitability?
Third-quarter total revenues increased primarily due to higher supply chain sales and increases in system-wide sales across the five franchisor segments. Income from operations rose mainly on higher segment income in each franchisor segment and a decrease in net foreign exchange losses, which were $1 million in the quarter versus $44 million a year earlier.
What is the status of BK China and how does it affect results?
RBI acquired substantially all remaining equity of BK China on February 14, 2025 for about $151 million in cash. The business is held for sale and reported as discontinued operations, with a net loss from discontinued operations of $7 million for the nine months. The company is in discussions with potential partners to acquire the controlling interest and expects this to occur within twelve months of the acquisition, and it provided $137 million of funding to BK China during the nine months.
How much liquidity and debt does the company have?
At September 30, 2025, the company had cash and cash equivalents of $1,206 million and borrowing availability of $1,248 million under its Revolving Credit Facility. Long-term debt, net of current portion, was $13,415 million, and the company stated it was in compliance with all applicable financial debt covenants. Management believes operating cash flow plus revolver availability will fund obligations over the next twelve months.
What shareholder returns and legal matters are disclosed?
The board approved a share repurchase authorization of up to $1,000 million running from September 15, 2025 through September 30, 2027, with $1,000 million remaining at quarter end. A $0.62 per share dividend was paid on October 7, 2025 and another $0.62 is payable January 6, 2026. Two class action lawsuits are pending, one over alleged Sherman Act violations tied to Burger King franchise agreements and one by former Carrols shareholders alleging breach of fiduciary duty; the company states it cannot predict the outcome or estimate a range of possible loss.
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