RSTRF Earnings Recap: Restaurant Brands Reports $0.98 EPS

Restaurant Brands International Limited Partnership reported earnings on May 6, 2026, delivering RSTRF earnings results that showed mixed momentum. The company posted $0.98 earnings per share and $2.26 billion in revenue for the period. While no consensus estimates were available for direct comparison, the earnings performance reflects the company’s ongoing operations across its Tim Hortons, Burger King, Popeyes, and Firehouse Subs brands. The stock declined 4.58% following the announcement, closing at $77.98. Meyka AI rates RSTRF with a grade of B+, suggesting the company maintains solid fundamentals despite recent market headwinds.

RSTRF Earnings Results and Market Reaction

Restaurant Brands International delivered its latest earnings report with results that sparked investor caution. The company reported $0.98 per share in earnings and $2.26 billion in quarterly revenue. Without consensus estimates available, the market focused on sequential performance trends and year-over-year comparisons.

Stock Price Movement Post-Earnings

The market responded negatively to the earnings release, with RSTRF shares falling 4.58% to close at $77.98 on May 7, 2026. The stock traded in a narrow range with a day low and high both at $77.98, indicating limited trading volume of just 7 shares against an average volume of 31 shares. This sharp decline from the previous close of $81.72 suggests investors may have expected stronger performance or forward guidance.

Quarterly Performance Trends

Comparing RSTRF’s latest quarter to recent results reveals a strong earnings recovery. The $0.98 EPS represents a significant jump from $0.60 EPS in the February 2026 quarter and $0.4884 EPS in the May 2025 quarter. Revenue of $2.26 billion sits between the $2.47 billion reported in February and the $2.11 billion from May 2025, showing the company maintains solid sales momentum despite seasonal variations.

Restaurant Brands Financial Health and Valuation

Restaurant Brands International maintains a substantial market presence with a $26.17 billion market capitalization. The company’s financial metrics reveal both strengths and areas requiring attention from investors evaluating the quick-service restaurant operator.

Profitability and Earnings Power

The company’s trailing twelve-month EPS of $3.13 reflects cumulative earnings strength across its portfolio of brands. With a P/E ratio of 24.91, RSTRF trades at a moderate valuation relative to its earnings generation. The net profit margin of 9.96% demonstrates the company’s ability to convert revenue into bottom-line earnings, though this reflects the capital-intensive nature of restaurant franchising and operations.

Cash Flow and Dividend Sustainability

RSTRF generates strong cash flow with $5.11 in operating cash flow per share and $4.36 in free cash flow per share on a trailing basis. The company maintains a 3.17% dividend yield with $2.51 in annual dividends per share, supported by solid cash generation. However, the payout ratio of 117% indicates the company pays out more in dividends than it earns, relying on cash flow reserves to sustain its shareholder returns.

Operational Performance Across Brand Portfolio

Restaurant Brands International operates a diversified portfolio spanning four major quick-service restaurant brands. The company’s franchise-heavy model generates recurring revenue while limiting capital requirements compared to company-operated locations.

Brand Segment Overview

The company operates 5,291 Tim Hortons locations, 19,247 Burger King restaurants, 3,705 Popeyes outlets, and 1,213 Firehouse Subs locations globally. Tim Hortons contributes steady coffee and beverage revenue, while Burger King remains the largest segment by unit count. Popeyes provides growth exposure to the chicken category, and Firehouse Subs offers regional specialty positioning. This diversification reduces dependence on any single brand or market.

Revenue Quality and Growth Trajectory

With $27.63 in revenue per share on a trailing basis, RSTRF demonstrates consistent sales generation. The company achieved 12.23% revenue growth in the latest fiscal year, outpacing many mature restaurant operators. Gross profit grew 28.17%, indicating improved operational efficiency and pricing power. However, operating income declined 7.48%, suggesting rising costs offset some margin benefits.

Forward Outlook and Investment Considerations

Looking ahead, Restaurant Brands faces a mixed outlook shaped by consumer spending patterns, labor costs, and competitive pressures in quick-service dining. The company’s strong brand portfolio and franchise model provide resilience, though near-term headwinds warrant monitoring.

Technical and Valuation Signals

The stock’s RSI of 49 indicates neutral momentum, neither overbought nor oversold. The ADX of 49.63 shows a strong trend in place, though the recent 4.58% decline suggests downward momentum. Price forecasts suggest potential recovery, with a yearly forecast of $67.44 and a three-year forecast of $62.78, implying near-term volatility before stabilization. The B+ grade from Meyka AI reflects solid fundamentals despite recent weakness.

Key Metrics Supporting Long-Term Value

RSTRF’s ROE of 27.14% demonstrates strong returns on shareholder capital, while ROA of 3.84% shows efficient asset utilization. The company maintains manageable leverage with a debt-to-equity ratio of 0.53 and interest coverage of 5.32x, providing financial flexibility. These metrics suggest the company can weather economic cycles and invest in brand development.

Final Thoughts

Restaurant Brands International reported $0.98 EPS and $2.26 billion in revenue, marking strong sequential earnings growth from prior quarters despite the stock’s 4.58% post-earnings decline. The company’s diversified brand portfolio, solid cash flow generation, and B+ Meyka AI grade support long-term value, though near-term market sentiment remains cautious. With a $26.17 billion market cap and 27.14% ROE, RSTRF maintains financial strength to support its 3.17% dividend yield. Investors should monitor upcoming quarters for sustained earnings momentum and management guidance on consumer spending trends affecting the quick-service restaurant sector.

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Disclaimer:

Stock markets involve risks. This content is for informational purposes only. Earnings estimates are analyst projections and not guarantees of actual results. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.