Restaurant Brands Raises Dividend to $0.65, Q4 Revenue Hits $2.466B; Slows BK Remodel
Restaurant Brands International’s Q4 revenue rose 7.4% to $2.466B with adjusted EPS of $0.96 topping estimates, while operating income decreased to $621M from $635M, driving shares down 6%. The company raised its dividend 4.8% to $0.65, slowed U.S. Burger King remodels as costs rose; SpongeBob meal promotions lifted same-store sales.
1. Q4 Financial Results
Restaurant Brands reported Q4 revenue of $2.466 billion, up 7.4% year-over-year, with adjusted EPS of $0.96 surpassing consensus. GAAP operating income fell to $621 million from $635 million, while diluted GAAP EPS declined to $0.60 from $0.79, contributing to a 6% share pullback.
2. Dividend and Guidance
The board approved a 4.8% increase in the quarterly dividend to $0.65 per share and set a 2026 annual target of $2.60. Full-year guidance includes segment G&A of $700–$720 million combined, net interest expense of $500–$520 million and capital expenditures around $400 million.
3. Operational Updates
Management plans to decelerate U.S. Burger King remodels as construction and supply costs rise, trimming the pace of net restaurant growth. Meanwhile, limited-time SpongeBob meal promotions at Burger King U.S. boosted same-store sales, while Tim Hortons and Popeyes contributed to system-wide sales growth of 5.8% in the quarter.