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Restaurant Brands International 8-K Report, Financial Results (May 8, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 8, 2025
Period End
May 8, 2025
Security
QSR
In the record · 2016–202610-K1110-Q338-K143

QSR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’17Oct ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Material agreement8-K · Jun ’24Jun ’24

01—Abstract

Summary

Summary of the 8-K filed May 8, 2025. Cited figures are marked; the original filing is the authoritative source.

Restaurant Brands International Inc. reported first quarter 2025 results for the three months ended March 31, 2025, under Exhibit 99 to this Form 8-K.

Consolidated system-wide sales grew 2.8% year-over-year to $10,496 milliona, including 8.6% growth in International, while global comparable sales were 0.1%, or over 1% excluding a Leap Day impact estimated at 110 basis points. Total revenues rose to $2,109 million from $1,739 million, driven by the new Restaurant Holdings segment, while income from operations fell to $435 million from $544 million. Adjusted Operating Income was roughly flat at $539 million versus $540 million, with organic AOI growth of 2.6%, and diluted EPS from continuing operations was $0.49 versus $0.72.

Net leverage was 4.7x compared with 4.8x a year earlier. Management said the company is making solid progress despite a slower start to the year, sees encouraging momentum in the second quarter, and remains on track for at least 8% organic Adjusted Operating Income growth in 2025. The company also declared a second-quarter 2025 dividend of $0.62b per common share and partnership exchangeable unit, payable July 8, 2025.

The filing notes that Burger King China was acquired on February 14, 2025 and classified as held for sale and discontinued operations, and that the company now expects Segment G&A (excluding Restaurant Holdings) of $600 million to $620 millionc for 2025. The filing also reaffirms 2025 guidance for adjusted interest expense, net of $500 million to $520 million, Restaurant Holdings Segment G&A of approximately $100 million, and Total Capex and Cash Inducements of $400 million to $450 million. Long-term algorithm targets for 2024 to 2028 remain 3%+ comparable sales and 8%+ organic AOI growth, with 5%+ net restaurant growth now expected toward the end of the period.

02—Key points

Key Highlights

  1. Total revenues increased to $2,109 million from $1,739 million, reflecting the consolidation of the Restaurant Holdings segment, which contributed $432 million of revenue.
  2. Income from operations declined to $435 million from $544 million, and net income from continuing operations fell to $223 million from $328 million.
  3. Adjusted Operating Income was $539 million versus $540 million, with organic AOI growth of 2.6%, while Adjusted EBITDA rose to $642 million from $627 million.
  4. Global comparable sales were 0.1% (over 1% excluding the Leap Day impact), while International system-wide sales grew 8.6%; Burger King US comparable sales declined 1.1% in the U.S.
  5. Diluted EPS from continuing operations was $0.49 versus $0.72; Adjusted Diluted EPS was $0.75 versus $0.73.
  6. Net leverage improved to 4.7x from 4.8x, and the company declared a $0.62 per share dividend for Q2 2025 payable July 8, 2025.
  7. Management reaffirmed 8%+ organic AOI growth for 2025, citing encouraging Q2 momentum, and updated Segment G&A (excluding RH) guidance to $600 million to $620 million.

03—Questions

Frequently Asked Questions

  1. Why did reported income from operations decline while Adjusted Operating Income was roughly flat?

    Income from operations fell to $435 million from $544 million, largely because other operating expenses were $83 million in the quarter versus $18 million of income in the prior-year period. Adjusted Operating Income excludes items such as other operating expenses (income), net, franchise agreement amortization, and transaction costs, which left AOI at $539 million versus $540 million.

  2. What is the company's outlook for 2025?

    Management said it remains on track for at least 8% organic Adjusted Operating Income growth in 2025 and sees encouraging momentum in Q2. The filing reaffirms adjusted interest expense, net of $500 million to $520 million, Restaurant Holdings Segment G&A of about $100 million, and Total Capex and Cash Inducements of $400 million to $450 million, and updates Segment G&A (excluding RH) to $600 million to $620 million.

  3. What is the status of Burger King China?

    On February 14, 2025, the company acquired substantially all remaining equity interests in Burger King China from its former joint venture partners. BK China is classified as held for sale and reported as discontinued operations, as the company is working to identify a new controlling shareholder. The balance sheet shows $645 million of assets and $500 million of liabilities held for sale.

  4. What drove the revenue increase in the Burger King segment?

    Burger King segment Total Revenues rose to $356 million from $350 million, primarily due to higher Advertising Revenues and Other Services as the franchisee advertising fund contribution rate increased from 4% to 4.5%, effective 2025 through at least 2026. This was partly offset by lower Franchise and Property Revenues from restaurant acquisitions by franchisees and lower system-wide sales.

  5. What dividend did the company declare?

    The Board declared a dividend of $0.62 per common share and partnership exchangeable unit of RBI LP for the second quarter of 2025. It is payable on July 8, 2025 to shareholders and unitholders of record at the close of business on June 24, 2025.

04—Continue

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