$QSR · Restaurant Brands International Inc.
Restaurant Brands International filed its Q3 2026 10-Q, reporting diluted EPS of $1.54 on revenue of $2.525B (+3.1% YoY). Net income from continuing operations reached $704M, boosted by a $133M income tax benefit versus a $94M tax expense in the prior-year quarter. The company generated $1.308B in operating cash flow from continuing operations over the first nine months and repurchased $444M in shares and exchangeable units.
- Q3 diluted EPS from continuing operations jumped to $1.54 vs $0.96 a year ago, a 60% increase.
- Q3 total revenue rose 3.1% YoY to $2.525B, with all segments contributing growth.
- Income tax benefit of $133M in Q3 2026 vs a $94M expense in Q3 2025 drove the net income surge.
- Nine-month operating cash flow from continuing operations reached $1.308B, up from $1.159B.
- Company repurchased $444M in common shares and Partnership exchangeable units during the first nine months of 2026.
Extended-hours trading shows QSR at $73.01, essentially flat vs the regular-session close of $73.01. The -2.03% regular-session decline today suggests the strong Q3 results were already priced in or overshadowed by broader market dynamics.
The 60% EPS jump is largely tax-driven rather than operational, but $444M in buybacks and 3.1% organic revenue growth across all four brands signal durable underlying momentum.
QSR's 3.1% revenue growth and 27.6% operating margin compare favorably to the broader QSR sector, where margin compression from labor and commodity inflation has been a headwind. The $133M tax benefit is a one-time boost that peers are unlikely to replicate.
Foreign currency translation losses of $414M over nine months signal significant FX exposure across international operations. The $414M swing in OCI from currency translation could pressure reported equity if the dollar continues strengthening.