Most Of Burger King Parent Restaurant Brands Growth Came From New Restaurants; It Plans Up To $450 Million In 2025 Capex

Restaurant Brands International Inc. QSR reported first-quarter revenue growth of 21.3% year-on-year to $2.11 billion, missing the analyst consensus estimate of $2.13 billion.

Consolidated comparable sales increased 0.1%, and net restaurants grew 3.3% versus the prior year. Consolidated system-wide sales increased 2.8%.

Comparable sales for Tim Hortons fell 0.1%, Burger King decreased 1.3%, and Popeyes Louisiana Kitchen slumped 4%. Revenue for Burger King rose 1.8%, and Popeyes Louisiana Kitchen increased 9%, while that of Tim Hortons fell 3.7% year over year.

Adjusted EPS of 75 cents missed the consensus estimate of 78 cents, but grew compared to 73 cents last year.

General and administrative expenses increased 10.4%. The operating income for the quarter declined 20% to $435 million.

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Adjusted EBITDA for the quarter was $642 million, up from $627 million in the prior year.

Restaurant Brands held $899 million in cash and equivalents as of March-end. Net cash provided by operating activities for the quarter totaled $118 million.

Restaurant Brands’ Board of Directors has declared a dividend of $0.62 per common share, payable on July 8, 2025, to shareholders and unitholders of record at the close of business on June 24, 2025.

“We are making solid progress executing the fundamentals of our business, despite a slower start to the year. We have clear growth plans across each of our brands and strong alignment with our franchisees,” said CEO Josh Kobza.

“We’re seeing encouraging momentum in Q2 and combined with responsible cost management, are on track to deliver stronger results through the balance of the year and achieve at least 8 percent organic adjusted operating income growth in 2025.”

Outlook: Restaurant Brands sees FY25 capital expenditures of $400 million – $450 million.

For the long term, from 2024 to 2028, Restaurant Brands expects a comparable sales growth of 3% and an organic adjusted operating income growth of 8%.

Price Action: QSR shares traded lower by 0.29% at $67.70 at the last check on Thursday.

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