Restaurant Brands International’s Quick-Service Expansion Accelerates With Strong Sales Growth

Restaurant Brands Int’l Inc. offers a solid 3.6% yield as its strategic investments in modernization and international expansion drive accelerating earnings growth.

Restaurant Brands International owns four iconic brands (Tim Hortons, Burger King, Popeyes, and Firehouse Subs) operating over 32,000 locations across 100 countries. Performance has been strong, with Tims doing especially well lately.

The company’s asset-light franchise model generates exceptional cash flow and positions the firm to deliver sustainable double-digit shareholder returns.

The stock trades at 18.7 times the company’s forward earnings forecast.

RESTAURANT BRANDS INTERNATIONAL (Toronto symbol QSR; www.rbi.com) gives you exposure to the world’s third-largest fast-food operator. That’s after McDonald’s (No. 1) and Yum Brands (No. 2). The company has over 32,229 outlets in over 100 countries. Its top banners are Burger King, Tim Hortons (coffee and donuts), Popeyes (fried chicken) and Firehouse Subs.

In May 2024, the company completed its purchase of Carrols Restaurant Group (Nasdaq symbol TAST) for roughly $1.0 billion. Carrols owns 1,020 Burger King and 60 Popeyes restaurants in the U.S. Restaurant Brands will also invest $500 million to modernize 600 of those Burger King locations.

Meanwhile, Restaurant Brands has now formed a new alliance Canadian Tire (symbol CTC.A on Toronto).

This new deal links Canadian Tire’s Triangle customer reward plan with the Tim Hortons reward plan. As a result, customers can earn loyalty points with purchases at both chains.
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Loyalty plans are an increasingly important tool for retailers to attract and retain customers. Analyzing customer data also gives them greater insight into shopping trends and lets them create specialized offers to encourage repeat visits and higher spending per visit.

In addition, the fast-food giant has now entered into an agreement to develop and grow Firehouse Subs in Mexico. It plans to open 100 restaurants in Monterrey and other major cities in the next five years.

Partner Foodplay is set to open the first Firehouse Subs restaurant this year in Monterrey, Nuevo León, followed by additional openings in the metropolitan area.

Firehouse Subs currently has over 1,300 restaurants across the U.S., Canada, Switzerland, Mexico, Albania, and the United Arab Emirates, with plans to open its first restaurants in Brazil and Australia later this year. This new agreement marks another milestone in the brand’s growth strategy in Latin America and around the world.

Restaurant Brands’ shares offer a solid yield at a reasonable price

In the quarter ended June 30, 2025, Restaurant Brands’ sales rose 15.9%, to $2.41 billion from $2.08 billion a year earlier (all amounts except share price and market cap in U.S. dollars). Same-store sales rose 3.4% at Tim Hortons and 1.3% at Burger King, but fell 0.8% at Firehouse Subs and 1.4% at Popeyes. The company earned $0.94 a share before one-time items in the latest quarter, up 8.6% from $0.87.

Meanwhile, the company’s earnings will probably rise 10% in 2025 to $3.66 U.S. a share; the stock trades at a reasonable 18.7 times that forecast. The new $2.48 U.S. dividend yields 3.6%.

Recommendation in The Successful Investor: Restaurant Brands Int’l Inc. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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