01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Restaurant Brands International Inc. reported third-quarter 2026 total revenues of $2,525 milliona, up from $2,449 million in the prior-year quarter, and income from operations of $696 million versus $663 million.
Net income attributable to common shareholders was $542 millionb, or $1.54 diluted net income per share, compared with $315 million and $0.96 in the third quarter of 2025. The quarter's income tax line was a benefit of $133 million, against $94 million of expense a year earlier, driven by movements in net deferred taxes tied to intra-group reorganizations. Adjusted Operating Income rose to $737 million from $702 million, with increases in the INTL, BK, TH and FHS segments partly offset by declines in PLK and RH.
For the nine months ended September 30, 2026, total revenues were $7,309 millionc versus $6,968 million, and income from operations was $2,018 million versus $1,581 million. The prior-year period included $244 million of other operating expenses, net, largely foreign exchange losses, whereas 2026 shows a net gain of $27 million in that line. Cash provided by operating activities from continuing operations was $1,308 million, compared with $1,159 million.
Cash and cash equivalents were $974 milliond at September 30, 2026, and borrowing availability under the Revolving Credit Facility was $1,248 million. The company repurchased $232 million of common shares during the nine months and paid $875 million in dividends and Partnership exchangeable unit distributions in the period. At September 30, 2026, total debt, net was $13,240 million, and the company stated it was in compliance with its financial debt covenants.
The company declared a quarterly dividend of $0.65 per common share payable January 5, 2027, and reported that it had $751 million remaining under its share repurchase authorization as of October 23, 2026. The filing also discloses an agreement-in-principle, reached in July 2026, to settle a shareholder class action related to the Carrols Acquisition, subject to court approval, and it describes an ongoing Sherman Act class action brought by former Burger King employees for which the company cannot predict the outcome.
02—Key points
Key Highlights
- Total revenues for Q3 2026 were $2,525 million, up from $2,449 million, and income from operations rose to $696 million from $663 million.
- Diluted net income per share was $1.54 for Q3 2026 versus $0.96 in Q3 2025; the income tax line was a $133 million benefit, compared with $94 million of expense a year earlier.
- Adjusted Operating Income was $737 million for Q3 2026 versus $702 million, with segment income higher in INTL, BK, TH and FHS and lower in PLK and RH.
- System-wide sales were $12,972 million for Q3 2026 versus $12,282 million, and comparable sales were up 3.8% for the quarter.
- Cash and cash equivalents were $974 million and Revolving Credit Facility availability was $1,248 million at September 30, 2026.
- The company repurchased $232 million of common shares in the nine months ended September 30, 2026, and declared a $0.65 per share quarterly dividend payable January 5, 2027.
- The Carrols shareholder litigation reached an agreement-in-principle to settle in July 2026, subject to final court approval.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $2.52B$2.45B | +3.1% |
| Operating Expenses | $1.83B$1.79B | +2.4% |
| Operating Income | $696.00M$663.00M | +5.0% |
| Net Income | $542.00M$315.00M | +72.1% |
| EPS (Basic) | $1.55$0.96 | +61.5% |
| EPS (Diluted) | $1.54$0.96 | +60.4% |
| Shares Outstanding (Basic) | 349.00M328.00M | +6.4% |
| Shares Outstanding (Diluted) | 457.00M457.00M | 0.0% |
05—Questions
Frequently Asked Questions
Why did the income tax line swing to a benefit in the third quarter of 2026?
The company reported an income tax benefit from continuing operations of $133 million for Q3 2026, compared with $94 million of expense in Q3 2025. The filing attributes the effective tax rate of (23.2)% primarily to discrete benefits from movements in net deferred tax assets connected with intra-group reorganizations undertaken in 2026, partly offset by the impact of OECD administrative guidance issued in 2025.
What drove the large increase in income from operations for the nine months?
Income from operations rose to $2,018 million from $1,581 million. The filing states the increase was primarily driven by a net gain on foreign exchange from remeasurement of foreign denominated assets and liabilities, primarily related to intercompany financing, compared with a net loss in the prior year, as well as higher segment income in INTL, BK, TH and FHS.
How is the company returning capital to shareholders?
In the nine months ended September 30, 2026, the company paid $875 million in common share dividends and Partnership exchangeable unit distributions and repurchased $444 million of RBI common shares and Partnership exchangeable units in cash flow terms. It declared a $0.65 per share dividend payable January 5, 2027, and had $751 million remaining under its share repurchase authorization as of October 23, 2026.
What legal matters does the filing disclose?
The filing describes a Sherman Act class action by former Burger King employees over a no-solicitation and no-hiring clause in the franchise agreement, for which the company says it cannot predict the outcome or estimate a range of loss. It also discloses that in July 2026 the parties to a Carrols shareholder complaint in Delaware reached an agreement-in-principle to settle, subject to final court approval.
06—Continue