Restaurant Brands International reported third-quarter earnings on Thursday showing divergent performance across its portfolio brands. The company posted net income attributable to common shareholders of $542 million, or $1.54 per share, compared with $315 million, or 96 cents per share, in the prior year. On an adjusted basis, the company earned $1.10 per share, while net revenue increased 3.1% to $2.53 billion. Shares declined approximately 2% in morning trading following the announcement.
The company reported same-store sales growth of 3.8% across all restaurants, extending a streak of above 3% growth to five consecutive quarters. CEO Josh Kobza indicated the operating environment remained relatively stable despite broader industry headwinds, including elevated gas prices that softened traffic at competitors during the third quarter. Restaurant Brands said it had not observed significant changes in consumer behavior patterns.
Burger King emerged as the strongest performer, delivering U.S. same-store sales growth of 8.4% as its multiyear turnaround initiative continued gaining momentum. The company attributed the results to sustained execution of operational improvements and menu enhancements. After upgrading its Whopper earlier in the year, Burger King introduced reformulated nuggets and sauces, with the nuggets relaunched on September 1 using 100% white meat chicken. Following this launch, nugget sales increased more than 35%, according to Kobza. Chair Patrick Doyle noted Burger King had achieved four years of industry outperformance with three consecutive quarters of exceptional results. Tim Hortons reported same-store sales growth of 1.8% in Canada following its July matcha drinks launch.
Popeyes continued to lag the broader portfolio, with U.S. same-store sales declining 2.2% amid competitive pressure from rivals using discount strategies. The company had previously anticipated a return to growth in the second half of 2026, but Kobza indicated during the earnings call that the timeline would extend further. A September relaunch of the $6 Big Box promotion delivered smaller-than-expected sales improvements. The scaling back of wings offerings to emphasize core menu items also pressured near-term sales, though traffic showed signs of improvement. Internationally, Restaurant Brands achieved same-store sales growth of 3.9%, driven primarily by Burger King locations.
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