Restaurant Brands Q2 Profit Falls, Revenue Beats Estimates

Restaurant Brands International, parent of Burger King, Tim Hortons, Popeyes, and Firehouse Subs, reported a decline in second-quarter net income to $189 million from $280 million a year earlier, even as revenue rose 16% to $2.41 billion, surpassing analyst expectations. The revenue increase was driven by strong international growth, with significant sales gains in Spain, Germany, the UK, and China, which helped offset weaker domestic performance. Comparable sales grew at Burger King and Tim Hortons, while Popeyes and Firehouse Subs experienced declines. The profit drop was largely attributed to sharply higher commodity costs, particularly surging beef prices, and a 36% rise in operating expenses. Adjusted earnings per share came in at $0.94, missing consensus estimates. The company also announced a $1 billion share buyback program running through 2027.