Operations

Burger King leads RBI growth with 8.4% U.S. comps increase

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October 29, 2026

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Burger King delivered the strongest comparable-sales growth across Restaurant Brands International's major brands in the third quarter, as value offers, marketing and menu innovation helped attract diners amid a challenging restaurant environment, the company said in its Q3 2026 earnings report.

U.S. comparable sales at Burger King increased 8.4% for the quarter ended Sept. 30, compared with 3.2% growth a year earlier. Globally, the brand's comparable sales rose 8.3%, while adjusted operating income increased 10.6% to $136 million. Revenue grew 2.3% to $396 million, with the impact of higher comparable sales partly offset by refranchising.

Restaurant Brands International CEO Josh Kobza said in the release that the company's results demonstrated the strength of its portfolio and its ability to invest for long-term growth.

"Those strengths are on display again this quarter, with over 3% global comparable sales led by outperformance at Burger King and steady growth at International and Tim Hortons," Kobza said in the company's earnings release.

RBI reported third-quarter revenue of $2.53 billion, up 3.1% year over year. Adjusted operating income increased 6.7% organically to $737 million, while adjusted diluted earnings per share rose 6.9% to $1.10. Net income from continuing operations climbed to $704 million, up from $440 million a year earlier, largely reflecting a tax benefit associated with intra-group reorganizations.

Burger King continues to execute its multiyear "Reclaim the Flame" initiative, which includes up to $700 million in investments through 2028 for advertising, digital capabilities, restaurant remodels, technology and kitchen upgrades. As of Sept. 30, RBI had funded $198 million of the up to $550 million planned for its Royal Reset restaurant investment program.

Popeyes struggles with sales and profitability

Popeyes remained a weak spot in RBI's third-quarter results, as declining comparable sales and rising expenses weighed on profitability.

Global comparable sales fell 1.8%, compared with a 2.4% decline in the year-ago quarter. U.S. comparable sales dropped 2.2%, worsening from a 2% decline a year earlier. For the first nine months of 2026, global comp sales were down 4.5%, while U.S. comp sales declined 4.6%, indicating that the brand's sales challenges extend beyond a single quarter.

Popeyes' systemwide sales slipped 1% to $1.503 billion, down from $1.519 billion a year earlier. Revenue, however, increased 1.5% to $204 million, up from $201 million. The increase is primarily because of higher company restaurant sales from locations acquired during the period. That increase was partially offset by lower advertising revenue and other services, mainly due to reduced contributions to advertising funds.

The pressure on profitability has persisted throughout the year. For the first nine months, Popeyes' revenue declined to $593 million , down from $605 million, while adjusted operating income dropped to $177 million from $188 million. Systemwide sales fell to $4.453 billion from $4.571 billion over the same period.

The company's quarterly results did not identify a specific operational or menu initiative as the cause of Popeyes' sales decline.

RBI's other brands deliver mixed results

Tim Hortons posted 1.5% comparable-sales growth, down from 4.2% in the prior-year quarter. Adjusted operating income increased 4.2% to $317 million, supported in part by tariff refunds and higher systemwide sales. In Canada, comparable sales rose 1.8%.

Firehouse Subs recorded 1.5% comparable-sales growth, while adjusted operating income increased 11.1% to $16 million. Systemwide sales grew 8.3%, driven primarily by net restaurant growth of 7.8%.

RBI's International segment also contributed to grow, with comparable sales increasing 3.9% and systemwide sales rising 9% on a constant-currency basis. Adjusted operating income climbed 8.9% to $205 million, supported by higher royalty revenue from Burger King and Popeyes restaurants, as well as the resumption of Burger King China royalty revenue.

Meanwhile, Restaurant Holdings, which includes company-operated restaurants acquired through RBI's Carrols and Popeyes China acquisitions, reported revenue of $487 million, up 6.2%. Adjusted operating income fell 46.6% to $5 million amid higher restaurant and compensation costs and investments in the Popeyes China and Firehouse Subs Brazil businesses.

RBI reaffirmed its full-year 2026 outlook, remaining on track for approximately 8% organic adjusted operating income growth. The company also said it had returned approximately $1.3 billion to shareholders through dividends and share repurchases during the first nine months of the year.