01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Restaurant Brands International Inc. reported first-quarter 2026 total revenues of $2.26 billiona, up from $2.11 billion in the prior-year quarter, with income from operations rising to $606 million from $435 million.
Net income attributable to common shareholders was $338 millionb, or $0.97 per diluted share, compared with $159 million, or $0.49 per diluted share, a year earlier. The filing attributes the operating income increase primarily to a net foreign exchange gain on remeasurement of intercompany balances (versus a net loss in the prior year) and higher segment income in the INTL, BK, TH and FHS segments. Adjusted Operating Income, the company's non-GAAP segment measure, was $610 million versus $539 million.
The effective tax rate fell to 7.9%c from 26.9%, partly due to a discrete tax benefit from an intra-group reorganization. Operating metrics improved: consolidated system-wide sales growth was 6.2% on a constant currency basis, and comparable sales rose 3.2%, versus 2.8% and 0.1% in the prior year. Net restaurant growth was 2.6%, and the system counted 32,985 restaurants at quarter end.
Cash provided by operating activities from continuing operations was $227 milliond, compared with $118 million a year earlier. Cash and cash equivalents were $1,012 million at March 31, 2026, and the company had $1,248 million of revolver availability.
The company also established a joint venture with CPE Alder Investment Limited for BK China, in which RBI holds about 17% and CPE holds about 83%, and it is sunsetting its Restaurant Holdings (RH) segment, which posted a $1 million Adjusted Operating Loss in the quarter. Subsequent to quarter end, RBI declared a $0.65 per share dividend payable July 7, 2026, and expects a discrete tax benefit of approximately $170 million in the quarter ending June 30, 2026.
02—Key points
Key Highlights
- Total revenues rose to $2,264 million from $2,109 million, driven by higher supply chain sales and increased system-wide sales across INTL, BK, TH and FHS.
- Income from operations increased to $606 million from $435 million, aided by a net foreign exchange gain of $30 million versus a $75 million loss in the prior-year quarter.
- Diluted net income per share from continuing operations was $0.97, compared with $0.49 in the prior-year quarter.
- Consolidated comparable sales grew 3.2%, with system-wide sales growth of 6.2% on a constant currency basis, versus 0.1% and 2.8% a year earlier.
- Effective tax rate was 7.9%, versus 26.9%, reflecting a discrete tax benefit from an intra-group reorganization; a further discrete benefit of approximately $170 million is expected in the quarter ending June 30, 2026.
- Cash provided by operating activities from continuing operations was $227 million, up from $118 million, while the company repurchased $34 million of common shares in the quarter.
- Long-term debt, net of current portion, was $13,228 million at March 31, 2026, and the company was in compliance with its financial debt covenants.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.26B$2.11B | +7.3% |
| Operating Expenses | $1.66B$1.67B | −1.0% |
| Operating Income | $606.00M$435.00M | +39.3% |
| Net Income | $338.00M$159.00M | +112.6% |
| EPS (Basic) | $0.98$0.49 | +100.0% |
| EPS (Diluted) | $0.97$0.49 | +98.0% |
| Shares Outstanding (Basic) | 347.00M326.00M | +6.4% |
| Shares Outstanding (Diluted) | 459.00M456.00M | +0.7% |
05—Questions
Frequently Asked Questions
What drove the large increase in income from operations this quarter?
The filing attributes the increase primarily to a net gain on foreign exchange from remeasurement of foreign denominated assets and liabilities, mainly related to intercompany financing, compared with a net loss in the prior year. Higher segment income in the INTL, BK, TH and FHS segments also contributed.
How did the effective tax rate change and why?
The effective tax rate was 7.9% in the first quarter of 2026, compared with 26.9% in the prior-year period. The decrease was primarily due to a discrete tax benefit from revaluing deferred tax liabilities in connection with an intra-group reorganization completed during the quarter.
What is the status of the BK China business and the RH segment?
RBI established a joint venture with CPE Alder Investment Limited for BK China, in which RBI holds about 17% and CPE holds about 83%, and it deconsolidated BK China and resumed recognizing franchise revenue from the joint venture. RBI also announced the sunset of its Restaurant Holdings segment in February 2026 and is working to refranchise Carrols Burger King restaurants and find new partners for PLK China and FHS Brazil.
What are the company's capital return and liquidity positions after the quarter?
The board declared a $0.65 per common share dividend payable July 7, 2026, to shareholders of record on June 23, 2026. Through April 30, 2026, the company repurchased 337,204 shares for $26 million, leaving $940 million under its share repurchase authorization. Cash and cash equivalents were $1,012 million at March 31, 2026, with $1,248 million of borrowing availability under the Revolving Credit Facility.
06—Continue