RBI’s Q4 sales hit US$12.1B as Burger King China deal reshapes future earnings

GLOBAL – Restaurant Brands International has served up a solid fourth quarter, with consolidated system-wide sales climbing 5.8% to US$12.13 billion.

Comparable sales rose 3.1% overall, powered by a sizzling 6.1% jump at its international segment and steady gains at Tim Hortons Canada and Burger King U.S.

But the big news bubbling beneath the surface is the completion of its Burger King China joint venture, a strategic pivot that will fundamentally change how the company reports earnings from the world’s most populous market.

Segment-by-Segment: Who Cooked What?

The international segment was the undisputed star, with comparable sales leaping 6.1%. Tim Hortons Canada delivered a respectable 2.8% increase, while Burger King U.S. grew 2.6%.

Firehouse Subs, however, was the laggard, posting just 1.2% comparable sales growth.

Net restaurant growth slowed to 2.9% year-on-year, dipping from 3.4%, a modest deceleration that suggests the company is prioritizing quality over quantity in new openings.

The China Story: A US$114 Million Goodbye and a New Beginning

Here’s where the numbers get interesting.

On 30 January 2026, RBI closed its previously announced joint venture with CPE Alder Investment Limited for Burger King China. The deal gives CPE an 83% stake while RBI retains 17% and a board seat.

But unwinding the previous structure came at a cost: a US$114 million non-cash charge recorded in 2025, buried in net loss from discontinued operations.

Starting this year, RBI will report its share of the BK China JV using the equity method, recognizing franchise revenue from royalties in the international segment.

Those initial royalty rates will be lower than standard Burger King International rates, but they’re structured to increase gradually over time, a patient play for long-term upside.

The Bottom Line: Profits Dip, Adjusted Earnings Rise

Net income from continuing operations fell to US$274 million from US$361 million, with diluted earnings per share dropping to US$0.60 from US$0.79.

But strip out the noise, and adjusted EBITDA actually climbed to US$772 million, with adjusted diluted earnings per share rising to US$0.96 from US$0.81. That’s the number management wants investors watching.

What Shareholders Get: A Juicier Dividend

The board declared a first-quarter 2026 dividend of US$0.65 per share, payable 2 April.

More significantly, RBI set an annual dividend target of US$2.60 per share for 2026, signaling confidence in cash flow despite the China restructuring. For investors, that’s a comforting cherry on top of a quarter that balanced steady operational performance with bold strategic surgery.

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