Restaurant Brands Intl — Income Statement, Cash Flows & Balance Sheet
Is Restaurant Brands International profitable?
Revenue grew strongly, but reported earnings fell due to a one-time charge from a discontinued operation.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total revenues | $8,406M | $9,434M | +12.2% |
| Income from operations | $2,419M | $2,202M | -9.0% |
| Net income from continuing operations | $1,445M | $1,201M | -16.9% |
| Net loss from discontinued operations | — | ($126M) | n/a |
| Net income attributable to common shareholders | $1,021M | $776M | -24.0% |
| Diluted EPS (continuing ops) | $3.18 | $2.63 | -17.3% |
The revenue jump was largely driven by consolidating Carrols Restaurant Group (acquired mid-2024) and BK China (acquired early 2025), both of which boosted company-owned restaurant sales. The drop in reported profit reflects a $126M non-cash write-down on BK China, which RBI quickly moved toward a joint-venture sale — this loss is a one-time item and does not reflect the ongoing franchise business. Adjusted Operating Income (a non-GAAP measure management uses to strip out acquisition costs and other noise) actually rose from $2,402M to $2,584M, suggesting the underlying franchise engine is still growing.
Where does Restaurant Brands International's revenue come from?
The franchise-focused core brands remain healthy, while the newly consolidated Restaurant Holdings segment now dominates reported revenues.
| Segment | 2024 Revenue | 2025 Revenue | Change |
|---|---|---|---|
| Tim Hortons (TH) | $4,040M | $4,247M | +5.1% |
| Burger King (BK) | $1,450M | $1,514M | +4.4% |
| Popeyes (PLK) | $768M | $800M | +4.2% |
| Firehouse Subs (FHS) | $214M | $232M | +8.4% |
| International (INTL) | $935M | $998M | +6.7% |
| Restaurant Holdings (RH) | $1,116M | $1,840M | +64.9% |
| Segment Adjusted Operating Income | 2024 | 2025 | Change |
|---|---|---|---|
| TH | $1,043M | $1,077M | +3.3% |
| BK | $410M | $468M | +14.1% |
| INTL | $614M | $690M | +12.4% |
| RH | $44M | $44M | flat |
Tim Hortons remains the largest profit contributor by a wide margin, while Burger King and International showed healthy profit growth. The Restaurant Holdings segment — company-owned Carrols restaurants — generates thin margins relative to the asset-light franchise segments, which is exactly why RBI has stated its intention to refranchise that portfolio over time.
Does Restaurant Brands International generate cash?
The business generates robust operating cash flow, and free cash flow (operating cash minus capital spending) remains strong.
| Cash Flow Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Operating cash flow (continuing ops) | $1,503M | $1,714M | +14.0% |
| Capital expenditures | ($201M) | ($265M) | +31.8% |
| Free cash flow (est.) | ~$1,302M | ~$1,449M | +11.3% |
| Dividends & distributions paid | ($1,029M) | ($1,108M) | +7.7% |
Operating cash flow grew meaningfully, reflecting the expanded restaurant base. Capital spending rose as RBI invested in remodelling the Carrols-acquired restaurants. Even after higher capex, free cash flow covered dividends with room to spare, and the company maintained its pattern of returning cash to shareholders through a rising dividend — now $2.48 per share annually.
How strong is Restaurant Brands International's balance sheet?
Debt is substantial but stable, and the company holds adequate liquidity — though leverage remains a key watch item.
| Balance Sheet Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Cash & equivalents | $1,334M | $1,163M | -12.8% |
| Total long-term debt (net) | $13,455M | $13,250M | -1.5% |
| Revolving credit facility availability | — | $1,248M | n/a |
| Total shareholders' equity | $4,843M | $5,159M | +6.5% |
The debt pile is large — over $13 billion — a legacy of acquiring four major brands through leveraged deals. However, net debt nudged lower in 2025, interest expense declined as rates on term loans fell, and the company has nearly $1.25 billion of undrawn revolving credit available for flexibility. The balance sheet also carries over $17 billion in brand intangibles and goodwill, which are not easily liquidated but reflect the durable value of the Tim Hortons, Burger King, Popeyes, and Firehouse Subs brands. Investors should monitor the pace of debt reduction and the refranchising of Carrols restaurants, which would reduce capital intensity and improve the financial profile over time.