Restaurant Brands International's third-quarter profit rose, thanks to strong contributions from Tim Hortons and its international segment.
Restaurant Brands International reported quarterly earnings and revenue that beat analysts' expectations. The company's international segment reported 6.5% same-store sales growth.
Restaurant Brands reported third-quarter comparable sales above estimates on Thursday, helped by resilient traffic at the its restaurant chains Burger King and Tim Hortons.
SoundHound AI's SOUN nationwide rollout of its phone-ordering system at Red Lobster has set a strong precedent for AI adoption in the quick-service industry. The deployment showcases how conversational AI can solve one of restaurants' biggest challenges—handling high call volumes without disrupting in-store service.
Restaurant Brands International remains undervalued, presenting a continued buying opportunity despite inflationary headwinds and increased competition. QSR's strengths include strong consumer loyalty for Burger King, Popeye's international expansion, prudent restaurant management, and robust liquidity. Valuation metrics suggest QSR is trading below historical averages, with technicals indicating renewed buying interest and potential upside.
QSR plans 300 new Popeyes in Mexico over the next 10 years, fueling growth with regional franchise partners.
Shares of Restaurant Brands International have been a relatively poor performer since my last update back in November, falling by around 6%. Comparable sales growth has been soft this year due to deteriorating consumer sentiment, particularly in the United States, though Q2 was much better than Q1. The company's international operations continue to drive overall growth, with the Burger King brand in better health abroad than at home.
El Pollo Loco's traffic and sales are lagging QSR peers, but restaurant-level margins and cost controls are improving above guidance. Menu innovation, marketing tweaks, and a franchised, asset-light expansion—especially outside California—are set to drive growth and resilience. Unit-level economics are strengthening, with new models offering attractive payback periods and IRRs, supporting accelerated store openings in FY 2025-26.
SoundHound AI, Inc. (SOUN) is now back in the spotlight after a blowout Q2. The company has now revised its 2025 revenue guidance, projecting $160 million to $178 million (midpoint implies a 99% yoy growth) and adjusted EBITDA profitability exiting 2025. QSR momentum remains strong. Hosted services revenue was up 147% yoy in Q2. QSR active network 14,000+ restaurants with new wins at IHOP, Red Lobster, and Peter Piper Pizza.
QSR's Q2 earnings miss estimates but rise Y/Y, with sales growth led by Tim Hortons and International units.
Parent company behind popular chains Tim Hortons, Popeyes and Firehouse Subs said it generated total revenue of $2.41 billion this past quarter.
Restaurant Brands International Inc. (NYSE:QSR ) Q2 2025 Earnings Conference Call August 7, 2025 8:30 AM ET Company Participants J. Patrick Doyle - Executive Chairman Joshua Kobza - Chief Executive Officer Kendall Ardyce Peck - Head of Investor Relations Sami A.