01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Restaurant Brands International Inc. reported higher second-quarter 2026 results.
Total revenues were $2,520 milliona for the three months ended June 30, 2026, up from $2,410 million a year earlier, and $4,784 million for the six months, up from $4,519 million. Income from operations rose to $716 million from $483 million for the quarter, helped by a $26 million net other operating income in 2026 versus $149 million of other operating expense in 2025, largely driven by foreign exchange remeasurement gains. Net income attributable to common shareholders was $507 million, or $1.45 diluted EPS from continuing operations, versus $189 million, or $0.57 diluted EPS, in the prior-year quarter.
Adjusted Operating Income rose to $715 millionb from $668 million, with growth in the INTL, BK, TH and FHS segments partly offset by a decline in PLK. System-wide sales growth was 6.4% for the quarter on a constant currency basis, and comparable sales rose 3.8%. Burger King comparable sales increased 8.6% in the quarter, while Popeyes (PLK) comparable sales declined 5.1%.
The company re-established a joint venture for BK China with CPE, in which RBI holds about a 17% stake, and resumed recognizing franchise royalties from it. Cash and cash equivalents were $1,063 millionc at June 30, 2026, with $1,248 million of revolver borrowing availability, and total debt, net of $13,254 million was modestly lower than at year-end 2025. Cash flow from operations for the six months was $757 million, up from $567 million.
The company repurchased $171 milliond of common shares in the first half under a $1,000 million authorization, leaving $829 million available at June 30, 2026, and paid dividends of $0.65 per share in the quarter. Subsequent to quarter end, the board declared another $0.65 per share dividend payable October 2, 2026, and an agreement-in-principle was reached in July 2026 to settle the Carrols shareholder lawsuit, subject to court approval.
02—Key points
Key Highlights
- Total revenues rose to $2,520 million in Q2 2026 from $2,410 million, and to $4,784 million for the six months from $4,519 million.
- Income from operations increased to $716 million from $483 million, aided by other operating income of $26 million versus expense of $149 million a year earlier, mainly foreign exchange gains.
- Diluted net income per share from continuing operations was $1.45 in Q2 2026 versus $0.58 in Q2 2025; net income attributable to common shareholders was $507 million versus $189 million.
- Adjusted Operating Income grew to $715 million from $668 million, led by INTL ($194 million), BK ($137 million) and TH ($287 million), with PLK down to $63 million.
- Burger King comparable sales rose 8.6% in Q2 2026, while Popeyes comparable sales fell 5.1%; system-wide sales growth was 6.4% on a constant currency basis.
- Cash flow from operating activities was $757 million for the six months, versus $567 million a year earlier; cash and equivalents ended at $1,063 million.
- Board declared a $0.65 per share dividend payable October 2, 2026, and the company repurchased $171 million of shares in the first half with $829 million remaining under its authorization.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.52B$2.41B | +4.6% |
| Operating Expenses | $1.80B$1.93B | −6.4% |
| Operating Income | $716.00M$483.00M | +48.2% |
| Net Income | $507.00M$189.00M | +168.3% |
| EPS (Basic) | $1.46$0.58 | +151.7% |
| EPS (Diluted) | $1.45$0.57 | +154.4% |
| Shares Outstanding (Basic) | 348.00M328.00M | +6.1% |
| Shares Outstanding (Diluted) | 460.00M457.00M | +0.7% |
05—Questions
Frequently Asked Questions
What drove the large increase in operating income this quarter?
Income from operations rose to $716 million from $483 million. The filing attributes the increase primarily to a net gain on foreign exchange remeasurement of foreign-denominated assets and liabilities, mainly intercompany financing, compared with a net loss in the prior year, along with higher segment income in INTL, BK, TH and FHS.
How did the core segment results perform?
Adjusted Operating Income was $715 million versus $668 million. INTL rose to $194 million from $172 million, BK to $137 million from $121 million, TH to $287 million from $278 million, and FHS to $17 million from $15 million. PLK declined to $63 million from $66 million, mainly due to lower comparable sales.
What is the status of the BK China business?
On January 30, 2026, RBI established a joint venture with CPE Alder Investment Limited for BK China. CPE invested $350 million of primary capital, RBI holds a 17% equity interest accounted for under the equity method, and RBI resumed recognizing franchise royalties from the joint venture in its INTL segment.
How is the company returning capital to shareholders?
In the first half of 2026, RBI repurchased 2,284,609 common shares for $171 million, leaving $829 million under its $1,000 million authorization. Dividends of $0.65 per share were paid on July 7, 2026, and another $0.65 per share dividend is payable October 2, 2026.
Is there any notable litigation development?
In July 2026, the parties to the lawsuit brought by former Carrols shareholders against RBI and two Carrols directors reached an agreement-in-principle to settle, subject to final court approval. The Burger King employee no-hire class action remains pending, with a March 2026 mediation resulting in an impasse, and the company states it cannot predict its outcome.
06—Continue