Restaurant Brands International Inc. Reports First Quarter 2025 Results

Restaurant Brands International Inc. (QSR), the parent company of Tim Hortons, Burger King, and Popeyes, has reported its first-quarter financial results for 2025, which fell short of Wall Street expectations. The company, which operates in the Consumer Discretionary sector, particularly within the Hotels, Restaurants & Leisure industry, has faced challenges due to a dip in consumer confidence and broader economic uncertainty.

Financial Performance Overview

The company’s net income attributable to common shareholders was reported at US$159 million, or 49 cents per share, marking a decline from the previous year. This decrease in profit is attributed to weaker spending and a decline in same-store sales across its major brands, particularly Burger King and Tim Hortons. The company’s financial performance has been impacted by sluggish demand, which has been exacerbated by macroeconomic factors.

Market Reaction

The close price of Restaurant Brands International Inc. on the Toronto Stock Exchange was 93.34 CAD as of May 5, 2025, with the stock having experienced a 52-week low of 83.32 CAD on April 8, 2025, and a high of 102.78 CAD on July 16, 2024. The company’s market capitalization stands at 21.38 billion CAD, with a price-to-earnings ratio of 20.55.

Key Challenges

The company’s CEO highlighted the dynamic macroeconomic environment as a significant factor affecting consumer spending patterns. The decline in same-store sales at Burger King and Tim Hortons has been a particular concern, contributing to the overall miss in earnings expectations. Additionally, the company has faced challenges related to tariff impacts, which have further strained demand at its restaurant chains.

Strategic Outlook

Despite the challenges faced in the first quarter, Restaurant Brands International Inc. continues to operate a diverse portfolio of fast-food brands across Canada and the United States. The company remains focused on delivering a range of food products, including coffee, fried chicken, subs, and burgers, along with delivery services. Moving forward, the company will likely continue to navigate the economic uncertainties while seeking opportunities to enhance its operational efficiency and drive growth across its brands.

In summary, Restaurant Brands International Inc. has reported a challenging first quarter in 2025, with profits falling short of expectations due to weaker consumer spending and declining same-store sales. The company will need to address these challenges as it moves forward in a dynamic economic landscape.