Restaurant Brands International Inc. ( QSR ) shares are trading higher as the company’s Burger King led a better-than-expected third quarter, outpacing the industry and lifting royalties and system-wide sales.

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The firm reported third-quarter adjusted earnings per share of $1.03, beating the analyst consensus estimate of $1.

Quarterly sales of $2.449 billion outpaced the Street view of $2.395 billion.

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Metrics

System-wide sales growth in the quarter under review was 6.9%, compared with 3.2% growth in the year-ago period.

Restaurant Brands registered comparable sales growth was 4% — including 6.4% at BK (Burger King) International, 4.2% at TH (Tim Hortons) Canada and 3.2% at BK US — compared with 0.3% in the year-ago period.

“Across our businesses, our franchisees are more aligned than ever, and that partnership, combined with disciplined execution, has us firmly on track to deliver at least 8% organic Adjusted Operating Income growth this year,” the company said.

Net restaurant growth in the quarter under review was 2.8%, lower than 3.8% in the year-ago period.

Quarterly adjusted EBITDA was $794 million, higher than $748 million.

Burger King Leads Charge

Burger King’s third-quarter system-wide sales rose 2.3% to $2.96 billion, with global comparable sales up 3.1%. Segment revenue increased to $387 million from $362 million, while the net restaurant count fell 1.1%.

Consolidated system-wide sales rose 6.9% year over year, driven in part by a 12.1% increase in the International segment.

In the International segment, higher system-wide sales boosted royalties from Burger King and Popeyes, lifting total revenue and adjusted operating income. This was partly offset by the absence of $10 million in BK China revenue recognized last year.

“Our teams delivered a strong quarter, driven by momentum from Tim Hortons and our International business, which together generate roughly 70% of our earnings,” said Josh Kobza. “Burger King also had a great quarter, outperforming most of the industry through consistent and disciplined execution of our plan,” the CEO added.

Dividend

The firm declared a dividend of 62 cents per common share and a partnership exchangeable unit of RBI LP for the fourth quarter of 2025. The dividend will be payable on Jan. 6.

Outlook

For 2025, Restaurant Brands continues to expect segment general and administrative (excluding RH) of $600 million to $620 million.

Its Restaurant Brands Global Refranchising and Holdings segment is projected to have general and administrative expenses of roughly $100 million, and adjusted net interest expense is expected to be around $520 million.

The company targets, on average from 2024–2028, 3%+ comparable sales and 8%+ organic adjusted operating income growth.

It also expects to reach 5%+ net restaurant growth toward the end of this period.

QSR Price Action: Restaurant Brands shares are trading higher by 3.15% to $68.10 at publication on Thursday.

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