The Top 5 Analyst Questions From Restaurant Brands's Q1 Earnings Call

Restaurant Brands’ first quarter saw sales increase year on year, but revenue and profit fell short of Wall Street expectations, with both headline and non-GAAP figures missing consensus. Management attributed the quarter’s results to macroeconomic challenges, particularly in North America, and the impact of ongoing portfolio changes, including the transition in the Burger King China business. CEO Josh Kobza acknowledged that "some of the macro noise may have driven further softness," while also emphasizing efforts to improve core operations and guest experience. The company focused on value offerings, operational upgrades, and continued investment in its major brands to navigate these headwinds.

Is now the time to buy QSR? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Restaurant Brands’s Q1 Earnings Call

• Dennis Geiger (UBS) asked about the impact of Canadian macro conditions on Tim Hortons and the brand’s resilience. CEO Josh Kobza cited a back-to-basics strategy and recent improvement in consumer confidence and sales trends in the second quarter.
• David Palmer (Evercore ISI) questioned international consumer trends and market share. Kobza explained that strong partners and menu innovation in markets like the UK, Germany, and Australia underpin performance, while China remains a near-term challenge.
• Brian Bittner (Oppenheimer) inquired about specific drivers of Burger King U.S. outperformance and the outlook for the rest of the year. Executive Chairman Patrick Doyle credited operational improvements and the pace of remodels, noting progress but emphasizing much work remains.
• John Ivankoe (JPMorgan) sought detail on Burger King remodel targets and long-term capital intensity. CFO Sami Siddiqui clarified remodel pacing and broke down capital allocation, indicating most future capex will be tied to Tim Hortons upgrades and property commitments.
• Sara Senatore (Bank of America) asked about consumer behavior across income cohorts and whether unit growth is impacting Tim Hortons’ same-store sales. Kobza said no clear trade-off is evident and reaffirmed management’s confidence in Tim Hortons’ continued momentum.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) the pace and impact of Burger King and Popeyes remodels on sales and profitability, (2) progress on refranchising Carrols and the divestiture of Burger King China, and (3) sustained operational improvements and new menu initiatives at Tim Hortons and Firehouse Subs. Execution on cost discipline and global expansion will also be important signposts for tracking the company’s trajectory.

Restaurant Brands currently trades at $65.90, down from $67.87 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

Our Favorite Stocks Right Now

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.