Restaurant Brands International Reports $2.109 Billion Revenue in Q1 2025, 20.5% Increase

Restaurant Brands International Limited Partnership (RBI) reported a total revenue of $2.109 billion for the first quarter of 2025, marking a 20.5% increase from $1.739 billion in the same period of 2024. The growth was primarily driven by the acquisition of Carrols Restaurant Group and Popeyes China, which contributed to the overall revenue increase despite a negative foreign exchange impact. Net income for the quarter was $221 million, down from $328 million year-over-year, reflecting a decrease in income from operations and an increase in income tax expenses.

The company's operating costs and expenses rose to $1.674 billion, up from $1.195 billion in the previous year, largely due to higher supply chain costs and general administrative expenses. The income from operations was reported at $435 million, a decline from $544 million in the prior year, attributed to unfavorable changes in other operating expenses and the adverse effects of foreign currency fluctuations. Earnings per Class A common unit decreased to $0.76 from $1.14, while earnings per Partnership exchangeable unit fell to $0.49 from $0.73.

RBI's operational metrics showed a system-wide sales growth of 2.8% and a comparable sales increase of 0.1%. The total number of restaurants reached 32,149, with a net restaurant growth of 3.3%. The company continues to maintain a predominantly franchised model, with over 90% of its restaurants being franchised. The recent acquisitions have expanded RBI's footprint, particularly in the international markets, although the BK China segment has been classified as held for sale as the company seeks a new controlling partner.

Looking ahead, RBI plans to continue its strategic focus on refranchising and optimizing its restaurant portfolio. The company is also investing in its "Reclaim the Flame" initiative for Burger King, which aims to enhance sales growth and franchisee profitability through significant investments in advertising and restaurant remodels. Despite the challenges posed by market conditions and foreign exchange impacts, RBI remains committed to its long-term growth strategy and expects to leverage its acquisitions to drive future performance.