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Delivered 8.3% organic adjusted operating income growth, marking the third consecutive year of roughly 8% growth despite a challenging consumer backdrop.
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Tim Hortons Canada outperformed the broader industry by nearly two points, driven by record cold beverage mix and improved speed of service across all dayparts.
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International segment achieved double-digit system-wide sales growth, supported by the transition of Burger King China to a new local partner and scaling Popeyes into a $2,000,000,000 run-rate business.
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Burger King US outperformed the burger QSR industry in nine of the last 12 quarters, attributed to the ‘Reclaim the Flame’ initiative and successful family-oriented marketing like the SpongeBob activation.
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Management acknowledged a performance gap at Popeyes US, citing a need to return to operational basics and refocus on core products like bone-in chicken and tenders.
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Strategic simplification of the portfolio continued with the acquisition of Burger King China equity and the acceleration of Burger King US refranchising efforts ahead of the original schedule.
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Committed to a fourth consecutive year of 8% organic adjusted operating income growth, supported by a return to 3% plus system-wide same-store sales.
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Expects net restaurant growth to reaccelerate in 2026 as Burger King China moves past its portfolio cleanup and transitions to a growth-focused joint venture.
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Anticipates Burger King US franchisee profitability will expand as cyclical beef cost pressures, which rose over 20% in 2025, begin to normalize in the second half of 2026.
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Plans to scale Tim Hortons’ digital engagement through a new loyalty partnership with Canadian Tire to drive adoption beyond the current 33% sales penetration.
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Guidance assumes a mid-3% SOFR rate impacting approximately 15% of debt, with adjusted net interest expense expected to remain flat year-over-year.
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Burger King China was reported as discontinued operations in 2025; royalties will phase back into the International P&L in 2026 at a rate initially below the standard 5%.
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The pace of Burger King modern image remodels is being influenced by the current high-cost environment, potentially extending the timeline to reach the 85% modern image target.
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A large Popeyes franchisee filing for bankruptcy was characterized as an isolated event not representative of the broader system’s healthy leverage levels.
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Tim Hortons’ franchisee economics faced headwinds from tariffs and increased commodity costs for coffee, though average four-wall EBITDA remained resilient at C$295,000.
