A global quick-service restaurant giant owning world-renowned burger and coffee chains that is currently navigating margin pressures despite record revenue growth.
Investors should consider RSTRF for its proven ability to execute on international expansion, particularly in high-growth markets like Latin America where Tim Hortons is gaining significant market share. The company's massive cash generation capabilities allow it to weather inflationary headwinds and continue aggressive capital investment in digital ordering infrastructure that drives long-term efficiency. A diversified brand portfolio mitigates the risk of any single brand underperforming, offering a stable defensive play within the consumer discretionary sector.
The decline in net profit from $1.72B in 2023 to $1.07B in 2025 highlights increasing margin compression that could persist if input costs remain elevated or traffic growth slows. High levels of long-term debt at $13.25B create interest rate sensitivity that could further erode earnings in a rising rate environment. The company faces intense competition from both traditional fast-food rivals and the growing cloud kitchen sector, which threatens its ability to maintain market share and pricing power.
Restaurant Brands International (RSTRF) is a global leader in the quick-service restaurant industry, operating iconic brands like Burger King, Tim Hortons, Popeyes, and The Habit. Serving customers across North America, Europe, Latin America, Asia-Pacific, and the Middle East, the company focuses on delivering high-quality, affordable food with a strong emphasis on digital innovation and sustainable sourcing.
Despite a recent dip in net income to $1.07B in 2025 compared to prior years, the company successfully expanded its total revenue to $9.43B, demonstrating strong top-line growth momentum from 2022 through 2025. However, the widening gap between operating profit and net income suggests increased tax or interest expenses that management must address to maintain profitability. The significant cash flow from operations of $1.71B provides ample liquidity to fund capital expenditures of $265M and return capital to shareholders via dividends.
The global quick-service restaurant industry is currently experiencing a bifurcation where consumers are trading down from full-service dining but demanding higher quality ingredients than in previous decades. Technological advancement is reshaping the sector as companies race to deploy AI-driven personalization and seamless mobile ordering to capture Gen Z and Millennial diners. Regulatory scrutiny on labor practices and sustainability standards is increasing, forcing operators to invest heavily in ethical sourcing and supply chain transparency.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.50B | $7.02B | $8.41B | $9.43B |
| Cost of Revenue | $2.31B | $2.44B | $0 | $0 |
| Gross Profit | $4.19B | $4.59B | $8.41B | $9.43B |
| Operating Expenses | $2.29B | $2.54B | $5.99B | $7.23B |
| Operating Income | $1.90B | $2.05B | $2.42B | $2.20B |
| G&A | $631.0M | $704.0M | $733.0M | $741.0M |
| Stock-Based Comp | $136.0M | $194.0M | $172.0M | $151.0M |
| D&A | $190.0M | $191.0M | $264.0M | $301.0M |
| Depreciation | $135.0M | $137.0M | $186.0M | $210.0M |
| Amortization | $39.0M | $37.0M | $58.0M | $69.0M |
| Other OpEx | $1.66B | $1.83B | $5.25B | $6.49B |
| Non-Operating Income | $-533.0M | $-598.0M | $-610.0M | $-518.0M |
| Interest Income | $7.0M | $40.0M | $39.0M | $31.0M |
| Pre-Tax Income | $1.36B | $1.45B | $1.81B | $1.68B |
| Income Tax | $-117.0M | $-265.0M | $364.0M | $483.0M |
| Continuing Ops | $1.48B | $1.72B | $1.45B | $1.20B |
| Discontinued Ops | $0 | $0 | $0 | $-126.0M |
| Net Income | $1.48B | $1.72B | $1.45B | $1.07B |
| Minority Interest | $3.0M | $3.0M | $3.0M | $1.0M |
| Net to Common | $1.48B | $1.72B | $1.44B | $1.07B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.05B | $2.17B | $2.28B | $2.83B |
| Inventory | $133.0M | $166.0M | $142.0M | $205.0M |
| Prepaid Expenses | $123.0M | $119.0M | $108.0M | $179.0M |
| Other Current Assets | $1.79B | $1.89B | $2.03B | $2.45B |
| Long-Term Assets | $20.70B | $21.22B | $22.35B | $22.79B |
| PP&E (Net) | $1.95B | $1.95B | $2.24B | $2.30B |
| Intangibles | $10.99B | $11.11B | $10.92B | $11.19B |
| Goodwill | $5.69B | $5.78B | $5.99B | $6.31B |
| Operating Leases | $1.08B | $1.12B | $1.85B | $1.96B |
| Other LT Assets | $987.0M | $1.10B | $1.24B | $914.0M |
| Total Assets | $22.75B | $23.39B | $24.63B | $25.61B |
| Current Liabilities | $2.12B | $2.14B | $2.36B | $2.89B |
| Accounts Payable | $758.0M | $790.0M | $765.0M | $866.0M |
| Current Debt | $95.0M | $67.0M | $187.0M | $32.0M |
| Current Leases | $137.0M | $147.0M | $193.0M | $200.0M |
| Taxes Payable | $190.0M | $129.0M | $228.0M | $188.0M |
| Other Current Liab | $-308.0M | $-239.0M | $-412.0M | $51.0M |
| Long-Term Liabilities | $16.36B | $16.52B | $17.43B | $17.57B |
| Long-Term Debt | $12.84B | $12.85B | $13.46B | $13.25B |
| LT Operating Leases | $1.03B | $1.06B | $1.77B | $1.90B |
| Other LT Liab | $1.82B | $1.99B | $1.63B | $1.82B |
| Total Liabilities | $18.48B | $18.66B | $19.79B | $20.46B |
| Shareholders' Equity | $4.27B | $4.73B | $4.84B | $5.16B |
| Retained Earnings | $0 | $0 | $0 | $0 |
| AOCI | $-973.0M | $-985.0M | $-1.52B | $-1.33B |
| Total L&E | $22.75B | $23.39B | $24.63B | $25.61B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.48B | $1.72B | $1.45B | $1.07B |
| Non-Cash Adjustments | $-677.0M | $-685.0M | $84.0M | $400.0M |
| Working Capital Changes | $685.0M | $290.0M | $-26.0M | $239.0M |
| Cash from Operations | $1.49B | $1.32B | $1.50B | $1.71B |
| Capital Expenditures | $100.0M | $120.0M | $201.0M | $265.0M |
| Cash from Investing | $-64.0M | $11.0M | $-660.0M | $-318.0M |
| Debt Issuances | $2.0M | $55.0M | $2.45B | $0 |
| Dividends Paid | $971.0M | $990.0M | $1.03B | $1.11B |
| Cash from Financing | $-1.31B | $-1.37B | $-625.0M | $-1.44B |
| FX Effect | $-28.0M | $1.0M | $-23.0M | $16.0M |
| Net Change in Cash | $91.0M | $-39.0M | $195.0M | $-105.0M |
| Beginning Cash | $1.09B | $1.18B | $1.14B | $1.33B |
| Ending Cash | $1.18B | $1.14B | $1.33B | $1.16B |
The company's revenue is primarily driven by its four major brand franchises: Burger King, Tim Hortons, Popeyes Louisiana Kitchen, and The Habit Burger Grill. Each segment operates through a mix of company-owned stores and franchisees, generating substantial operating profits while managing significant capital expenditures for new store openings and remodels.
Fluctuating commodity costs for key ingredients like beef and chicken directly impact gross margins in a low-price-point business model. Inflationary pressures on labor and real estate rents are squeezing operating expenses across all global locations. Geopolitical instability or economic downturns could reduce discretionary spending on fast food, particularly in emerging markets where the company holds significant exposure.
RSTRF possesses deep global scale allowing for powerful supply chain efficiencies and localized menu adaptations that smaller competitors cannot match. The portfolio features highly recognizable brands with loyal customer bases, providing a stable platform for digital expansion and loyalty program growth. A robust franchise model generates high-margin royalty and rent revenue streams while transferring significant operational risks to partners.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.