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Fast-food company Restaurant Brands (NYSE:QSR) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 21.3% year on year to $2.11 billion. Its non-GAAP EPS of $0.75 per share was 4.1% below analysts’ consensus estimates.
Is now the time to buy QSR? Find out in our full research report (it’s free).
Restaurant Brands’ first quarter results were shaped by ongoing challenges in consumer demand and varied performance across its global markets. CEO Josh Kobza noted that flat comparable sales reflected a tough macroeconomic environment, with the company experiencing limited momentum in North America while maintaining relative outperformance against peers. Management emphasized the role of ongoing operational improvements, such as restaurant remodels at Burger King and Popeyes and menu innovation at Tim Hortons, in supporting system-wide sales growth. CFO Sami Siddiqui pointed to the impact of calendar timing and the transition of the Burger King China business as additional headwinds. Despite these pressures, management credited disciplined cost control and targeted investments in digital and supply chain initiatives for offsetting some of the quarter’s softness.
Looking ahead, Restaurant Brands’ forward guidance centers on operational execution, continued investment in restaurant modernization, and disciplined cost management to drive improved profitability. CEO Josh Kobza expressed confidence in delivering at least 8% organic adjusted operating income growth for the year, supported by early signs of sales momentum in the second quarter. Management highlighted plans to accelerate remodels, particularly at Burger King U.S., and to expand new menu platforms and marketing initiatives at Tim Hortons and Popeyes. CFO Sami Siddiqui indicated that cost efficiencies—including a reduction in segment G&A—are expected to provide operating leverage, while portfolio adjustments in China and refranchising efforts are designed to simplify the business. However, the company flagged ongoing macroeconomic uncertainty as a persistent risk to achieving its targets.
Management attributed the quarter’s performance to mixed consumer demand, operational investments, and ongoing portfolio adjustments, while pointing to early progress in cost containment and restaurant upgrades.
Restaurant Brands’ outlook is driven by accelerating operational upgrades, product innovation, and disciplined expense management amid ongoing macroeconomic uncertainty.
In the coming quarters, the StockStory team will be monitoring (1) the pace and impact of Burger King and Popeyes remodels on guest experience and sales, (2) progress in refranchising company-owned locations and simplifying the portfolio, particularly in China, and (3) the effectiveness of new menu initiatives and marketing campaigns at Tim Hortons and across the portfolio. Execution on cost savings and local sourcing strategies will also be critical to achieving operating income targets.
Restaurant Brands currently trades at a forward P/E ratio of 18.9×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it’s free).
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Shares Of Burger King's Parent, Restaurant Brands, Rapidly Rising Toward Fresh High
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