Burger King Roars Ahead, But Restaurant Brands International Shares Slip
Restaurant Brands International (QSR) saw its shares drop by 2.1% on Thursday, despite Burger King's impressive U.S. comparable sales growth of 8.5%. This marked the first time since mid-2023 that Burger King surpassed the market forecast for such a quarter.
The strong performance was driven by better service and restaurant investments, as well as value-focused buyers drawn to promotional deals like $5 Duos and $7 Trios. However, the company's CEO Josh Kobza noted that Whopper sales climbed nearly 20% since the brand's elevation campaign was launched.
Despite Burger King's success, Restaurant Brands International's overall growth was limited due to underperformance from other segments, including Tim Hortons Canada and Popeyes. The latter saw a 5.2% decline in U.S. comparable sales, while Firehouse Subs reported a 7.5% rise in system sales.
McDonald's (MCD) U.S. comparable sales grew by only 0.8%, missing market forecasts. Analysts attributed this to challenges with U.S. promotion execution. Restaurant Brands International reiterated its forecast for roughly 8% organic adjusted operating-income growth in 2026, despite the mixed quarterly results.