<div id="readability-page-1" class="page"><div>Restaurant Brands International Inc. (RBI), a global leader in the quick service restaurant (QSR) industry, has released its 2025 10-K report, detailing the company's financial performance, business operations, strategic initiatives, and the challenges it faces. RBI operates through well-known brands such as Tim Hortons, Burger King, Popeyes, and Firehouse Subs, with a significant international presence. The report provides insights into the company's efforts to drive growth, enhance operational efficiency, and navigate a competitive market landscape. Financial Highlights <ul><li>Total Revenues: $9,434 million, reflecting an increase primarily driven by the net impact of restaurants acquired from franchisees and increases in supply chain sales.</li><li>Income from Operations: $2,202 million, a decrease primarily driven by an increase in net losses on foreign exchange and the non-recurrence of a $79 million gain recognized during 2024.</li><li>Net Income: $1,075 million, a decrease primarily driven by a decrease in income from operations and an increase in income tax expense from continuing operations.</li><li>Basic Net Income Per Share: $2.36, reflecting the overall decrease in net income.</li><li>Diluted Net Income Per Share: $2.35, consistent with the decrease in net income and reflecting the impact of share dilution.</li></ul> Business Highlights <ul><li>Revenue Segments: The company operates through six segments: Tim Hortons, Burger King, Popeyes, Firehouse Subs, International, and Restaurant Holdings. Each segment contributes to the overall system-wide sales, with Tim Hortons and Burger King being the largest contributors.</li><li>Geographical Performance: The company has a significant international presence with operations in over 120 countries. The International segment showed a system-wide sales growth of 10.7%, driven by higher royalties from Burger King and Popeyes restaurants.</li><li>Sales Units: As of December 31, 2025, the company operated over 33,000 restaurants globally, with a net restaurant growth of 2.9%. The majority of these restaurants are franchised, with a small percentage being company-operated.</li><li>New Product Launches: The company continues to innovate with new menu items and limited-time promotions across its brands, aiming to increase traffic and expand its guest base.</li><li>New Production Launches: The company operates two coffee roasting facilities for Tim Hortons and has expanded its distribution network to include nine distribution centers in Canada.</li><li>Future Outlook: The company plans to accelerate net restaurant growth, particularly in the International segment, and increase the pace of refranchising for acquired Burger King restaurants. It also aims to enhance guest experience through digital solutions and modernized operations.</li></ul> Strategic Initiatives <ul><li>Strategic Acquisitions: The company executed several strategic acquisitions, including the acquisition of substantially all remaining equity interests in Burger King China and the establishment of a joint venture with CPE Alder Investment Limited for Burger King China operations.</li><li>Reclaim the Flame Plan: The company is executing a multi-year 'Reclaim the Flame' plan to accelerate sales growth and drive franchisee profitability, which includes significant investments in advertising, digital initiatives, and restaurant enhancements.</li><li>Capital Management: The company maintained a strong focus on capital management by repurchasing common shares under a new $1,000 million share repurchase authorization, replacing the previous authorization. It also declared quarterly cash dividends, targeting a total of $2.60 per common share for 2026. The company managed its debt portfolio by restructuring its Canadian cross-currency rate swap and repricing its Term Loan B, resulting in reduced interest expenses.</li><li>Future Outlook: Looking ahead, the company plans to continue its strategic focus on refranchising and finding new partners for its international operations, including PLK China and FHS Brazil. It aims to invest up to $700 million through 2028 in its 'Reclaim the Flame' plan, with a significant portion allocated to the 'Royal Reset' initiative for restaurant upgrades. The company also anticipates further capital expenditures of around $400 million in 2026, with a continued emphasis on optimizing its capital structure and enhancing shareholder value through strategic share repurchases and dividend distributions.</li></ul> Challenges and Risks <ul><li>Competitive Industry: The company operates in a highly competitive quick service restaurant (QSR) industry, facing intense competition from well-established food service companies, independent operators, and new market entrants. This competition is based on product choice, quality, value, and service, which could negatively impact the company's market share and profitability.</li><li>Economic Conditions: Economic conditions, such as inflation, rising interest rates, and unemployment, may continue to adversely affect consumer discretionary spending, impacting restaurant sales and profitability. The company also faces risks from geopolitical conflicts, which could disrupt supply chains and increase costs.</li><li>Regulatory Risks: The company is subject to various regulatory risks, including compliance with evolving privacy and data protection laws, which could result in significant penalties if not adhered to. Additionally, changes in tax laws, such as Canada's new limitation on interest deductibility and global minimum tax rules, could materially affect the company's financial position.</li><li>Operational Risks: Operational risks include the company's reliance on third-party suppliers and distributors, which could lead to supply chain disruptions. The company also faces challenges in securing and renewing desirable restaurant locations, which are critical for maintaining and growing its restaurant portfolio.</li><li>Franchised Business Model: The company's franchised business model presents risks such as limited influence over franchisee operations and the need for franchisee support in strategic initiatives. The inability of franchisees to secure financing for development or reinvestment could adversely affect growth.</li><li>Digital Engagement: Management has identified the need to enhance digital engagement and technology integration as a key strategy to address competitive pressures and improve guest experience. The company is focusing on loyalty programs, mobile ordering, and delivery channels to increase convenience and drive sales.</li><li>Supply Chain Risks: The company is addressing supply chain risks by maintaining a vertically integrated supply chain for its Tim Hortons brand, which includes proprietary coffee blends and manufacturing facilities. However, this strategy exposes the company to risks associated with managing manufacturing and distribution operations.</li><li>Market Risk: The company is exposed to foreign currency exchange rate fluctuations, particularly due to its operations in multiple countries. This exposure could adversely affect financial results, despite attempts to mitigate risks through geographic diversification and financial instruments.</li></ul>SEC Filing: Restaurant Brands International Inc. [ QSR ] - 10-K - Feb. 20, 2026</div></div>

Restaurant Brands International Inc. (RBI) has released its 2025 10-K report, highlighting financial performance and strategic initiatives. Total revenues reached $9,434 million, with net income at $1,075 million. The company operates over 33,000 restaurants globally, focusing on growth in the International segment and refranchising efforts. Challenges include intense competition, economic conditions, and regulatory risks. RBI plans to invest up to $700 million in its 'Reclaim the Flame' initiative and anticipates further capital expenditures of around $400 million in 2026 to enhance shareholder value.

Restaurant Brands International Inc. SEC 10-K Report