Burger King's $700 Million Fix Is Paying Off for Restaurant Brands International
Key Points
Burger King is starting to look like itself again after two solid quarters.
Growth at the core Tim Hortons brand has slowed to a crawl, offsetting the progress made by the burger chain.
RBI's international segment has held same-store sales growth above 5% over the past year.
- 10 stocks we like better than Restaurant Brands International ›
Restaurant Brands International (NYSE: QSR) is four years into rebuilding Burger King, and the work is finally showing up in the numbers. U.S. same-store sales grew 8.5% in the second quarter, compared to just 0.8% at McDonald's in the same period.
That was the second strong quarter in a row for Burger King -- same-store sales rose by nearly 6% in the first quarter. Average unit volumes for the Whopper are up over 20% since the burger's relaunch hit menus in February.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The fast-food restaurant is taking market share, outgrowing the quick-service burger industry by more than nine percentage points as the company's Reclaim the Flame initiative rolls on.
Image source: Getty Images.
Rebuilding from the kitchen out
The Burger King playbook was borrowed from Domino's Pizza, where Patrick Doyle led a major turnaround before joining Restaurant Brands International as executive chairman in 2022.
The strategy puts operations, including the food and franchisee economics, ahead of marketing and growth.
The company has remodeled over 1,000 restaurants since 2018, and plans to continue updating more of them through 2028, building on a foundation of healthier unit economics.
With the business on firmer footing, management can now focus on driving traffic through marketing campaigns centered on the elevated Whopper.
The profit driver is decelerating
While Burger King's results have been improving, Tim Hortons' performance has weighed on the overall company's results. The Canadian coffee-and-donut chain posted same-store sales growth of only 0.1%, marking its fourth straight quarter of decelerating growth.
The slowdown is a big deal because Tim Hortons is the company's anchor, generating around 40% of Restaurant Brands International's operating profit.
Meanwhile, its Popeyes Louisiana Kitchen chain continues to slide. The fried chicken chain posted a 5.2% decline in U.S. same-store sales. It has been RBI's weakest brand over the past year, but management expects Popeyes to return to growth in the second half of 2026.
The international segment remains a bright spot for Restaurant Brands International, with same-store sales up 5.5%. Burger King's 19% profit share, combined with the international side at roughly 29%, means half the business is expanding, and nearly 90% of the company is growing or stable.
For someone who's watched the Burger King saga unfold for more than a decade, it's nice to see the turnaround taking place. Now, management needs to get old, reliable Tim Hortons moving in the right direction. With Restaurant Brands International trading at around 18 times forward earnings and paying a dividend that yields 3.3% at the current share price, patient investors may consider this a good time to pick up shares.
Should you buy stock in Restaurant Brands International right now?
Before you buy stock in Restaurant Brands International, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Restaurant Brands International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!*
Now, it’s worth noting Stock Advisor’s total average return is 973% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 20, 2026.
Bryan White has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Domino's Pizza. The Motley Fool recommends Restaurant Brands International and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
Recommended Articles
