Restaurant Brands International Reports 21.3% Revenue Growth in Q1 2025

Restaurant Brands International Inc. (RBI) reported its financial results for the first quarter of 2025, revealing total revenues of $2.109 billion, a 21.3% increase from $1.739 billion in the same period last year. The growth was primarily driven by the acquisition of Carrols Restaurant Group and Popeyes China, which contributed to an increase in supply chain sales and company restaurant sales. Net income attributable to common shareholders was $159 million, down from $230 million in the prior year, resulting in a basic net income per share of $0.49 compared to $0.73 in the first quarter of 2024.

The company's operating costs and expenses rose to $1.674 billion, up from $1.195 billion a year earlier, largely due to increased supply chain costs and general administrative expenses. The increase in operating expenses was also influenced by unfavorable foreign exchange impacts and higher costs associated with the integration of acquired businesses. As a result, income from operations decreased to $435 million from $544 million in the previous year. The effective tax rate for the quarter was 26.9%, compared to 17.2% in the prior year, reflecting changes in tax regulations and the mix of income from various jurisdictions.

RBI's strategic developments included the completion of the BK China Acquisition, which was finalized on February 14, 2025, for approximately $151 million. This acquisition has been classified as held for sale, and the company is currently seeking a new controlling shareholder for BK China. Additionally, the company continues to execute its "Reclaim the Flame" plan for Burger King, which involves significant investments in advertising and restaurant remodels aimed at driving sales growth and enhancing franchisee profitability.

Operationally, RBI reported a system-wide sales growth of 2.8% and a net restaurant growth of 3.3%, with a total of 32,149 restaurants across its brands as of March 31, 2025. The company’s international presence remains strong, with over 90% of its restaurants being franchised. However, the company noted challenges in comparable sales, which increased only marginally by 0.1%, indicating a need for continued focus on customer engagement and brand performance.

Looking ahead, RBI anticipates ongoing investments in its brands and operational improvements, while also managing the integration of recent acquisitions. The company has a robust liquidity position, with $899 million in cash and cash equivalents and $1.248 billion available under its revolving credit facility. RBI plans to continue its share repurchase program, with $500 million remaining under authorization, and expects to maintain its dividend payments, reflecting confidence in its long-term growth strategy.