Gross margin volatility is a key concern, swinging from 49.6% in 2026Q1 to 34.5% in 2026Q2, indicating significant exposure to commodity costs and promotional activity.
Restaurant Brands International Inc. (QSR) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 9.7B | 9.43B | 8.41B | 7.02B | 6.5B | 5.74B | 4.97B | 5.6B | 5.36B | 4.58B | 4.15B | 4.05B | 1.2B | 1.15B | 1.97B |
| Revenue Growth % | 6.51% | 12.23% | 19.71% | 7.95% | 13.35% | 15.52% | -11.33% | 4.59% | 17.07% | 10.37% | 2.31% | 238.02% | 4.58% | -41.84% | - |
| Cost of Goods Sold | 5.35B | 5.56B | 5.38B | 4.22B | 3.91B | 3.37B | 3B | 3.21B | 2.24B | 2.33B | 2.18B | 2.31B | 335.4M | 347.7M | 1.15B |
| COGS % of Revenue | - | 58.91% | 64.03% | 60.1% | 60.06% | 58.63% | 60.29% | 57.31% | 41.81% | 50.87% | 52.6% | 57.07% | 27.98% | 30.33% | 58.47% |
| Gross Profit | 4.35B | 3.88B | 3.02B | 2.8B | 2.6B | 2.37B | 1.97B | 2.39B | 3.12B | 2.25B | 1.97B | 1.74B | 863.4M | 798.6M | 818.6M |
| Gross Margin % | 44.85% | 41.09% | 35.97% | 39.9% | 39.94% | 41.37% | 39.71% | 42.69% | 58.19% | 49.13% | 47.4% | 42.93% | 72.02% | 69.67% | 41.53% |
| Gross Profit Growth % | - | 28.17% | 7.92% | 7.85% | 9.44% | 20.32% | -17.52% | -23.26% | 38.66% | 14.4% | 12.96% | 101.47% | 8.11% | -2.44% | - |
| Operating Expenses | 1.72B | 1.64B | 605M | 751M | 700M | 495M | 551M | 385M | 1.2B | 513M | 298M | 547.3M | 682.3M | 276.4M | 400.9M |
| OpEx % of Revenue | - | 17.36% | 7.2% | 10.7% | 10.76% | 8.63% | 11.09% | 6.87% | 22.4% | 11.21% | 7.19% | 13.51% | 56.92% | 24.11% | 20.34% |
| Selling, General & Admin | 718M | 713M | 691M | 647M | 561M | 450M | 388M | 387M | 1.14B | 329M | 281M | 304M | 206.4M | 204.8M | 272.8M |
| SG&A % of Revenue | - | 7.56% | 8.22% | 9.21% | 8.62% | 7.84% | 7.81% | 6.91% | 21.26% | 7.19% | 6.78% | 7.5% | 17.22% | 17.87% | 13.84% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 925M | -86M | 104M | 139M | 45M | 163M | -2M | 61M | 184M | 17M | 243.3M | 475.9M | 71.6M | 128.1M |
| Operating Income | 2.63B | 2.24B | 2.42B | 2.05B | 1.9B | 1.88B | 1.42B | 2.01B | 1.92B | 1.74B | 1.67B | 1.19B | 181.1M | 522.2M | 417.7M |
| Operating Margin % | 27.12% | 23.72% | 28.78% | 29.21% | 29.18% | 32.74% | 28.62% | 35.82% | 35.78% | 37.92% | 40.21% | 29.42% | 15.11% | 45.56% | 21.19% |
| Operating Income Growth % | - | -7.48% | 17.94% | 8.06% | 1.01% | 32.14% | -29.15% | 4.69% | 10.49% | 4.08% | 39.83% | 558.31% | -65.32% | 25.02% | - |
| EBITDA | 2.94B | 2.46B | 2.68B | 2.24B | 2.09B | 2.08B | 1.61B | 2.19B | 2.1B | 1.92B | 1.84B | 1.37B | 249.9M | 588M | 531.9M |
| EBITDA Margin % | 30.28% | 26.1% | 31.92% | 31.93% | 32.1% | 36.24% | 32.43% | 39.12% | 39.15% | 41.89% | 44.36% | 33.91% | 20.85% | 51.3% | 26.99% |
| EBITDA Growth % | 20.67% | -8.24% | 19.67% | 7.38% | 0.38% | 29.11% | -26.51% | 4.53% | 9.39% | 4.24% | 33.82% | 449.9% | -57.5% | 10.55% | - |
| D&A (Non-Cash Add-back) | 307M | 224M | 264M | 191M | 190M | 201M | 189M | 185M | 180M | 182M | 172M | 182M | 68.8M | 65.8M | 114.2M |
| EBIT | 2.49B | 2.2B | 2.4B | 2.05B | 1.88B | 1.84B | 1.31B | 1.98B | 1.9B | 1.61B | 1.63B | 1.12B | 17.7M | 512.8M | 368.7M |
| Net Interest Income | -459M | -488M | -765M | -726M | -535M | -425M | -475M | -576M | -576M | -481.2M | -445.6M | -466.3M | -273.1M | -193.9M | -220.6M |
| Interest Income | 25M | 28M | 39M | 40M | 7M | 3M | 9M | 20M | 15M | 26.4M | 4.1M | 4.2M | 3.7M | 2.6M | 1.1M |
| Interest Expense | 484M | 516M | 804M | 766M | 542M | 428M | 484M | 596M | 591M | 507.6M | 449.7M | 470.5M | 276.8M | 196.5M | 221.7M |
| Other Income/Expense | -527M | -554M | -610M | -598M | -533M | -516M | -606M | -555M | -535M | -634M | -467M | -518.3M | -435.1M | -200M | -258M |
| Pretax Income | 2.1B | 1.68B | 1.81B | 1.45B | 1.36B | 1.36B | 816M | 1.45B | 1.38B | 1.1B | 1.2B | 673.9M | -254M | 322.2M | 159.7M |
| Pretax Margin % | 21.68% | 17.85% | 21.52% | 20.69% | 20.98% | 23.75% | 16.43% | 25.91% | 25.8% | 24.06% | 28.94% | 16.63% | -21.19% | 28.11% | 8.1% |
| Income Tax | 279M | 483M | 364M | -265M | -117M | 110M | 66M | 341M | 238M | -134M | 244M | 162.2M | 15.3M | 88.5M | 42M |
| Effective Tax Rate % | 13.27% | 28.68% | 20.12% | -18.24% | -8.57% | 8.07% | 8.09% | 23.48% | 17.22% | -12.17% | 20.33% | 24.07% | -6.02% | 27.47% | 26.3% |
| Net Income | 1.27B | 776M | 1.02B | 1.19B | 1.01B | 838M | 486M | 643M | 612M | 648M | 616M | 375.1M | 161.4M | 233.7M | 117.7M |
| Net Margin % | 13.13% | 8.23% | 12.15% | 16.95% | 15.5% | 14.6% | 9.78% | 11.48% | 11.42% | 14.16% | 14.86% | 9.26% | 13.46% | 20.39% | 5.97% |
| Net Income Growth % | 48.2% | -24% | -14.2% | 18.06% | 20.29% | 72.43% | -24.42% | 5.07% | -5.56% | 5.19% | 64.22% | 132.4% | -30.94% | 98.56% | - |
| Net Income (Continuing) | 1.82B | 1.2B | 1.45B | 1.72B | 1.48B | 1.25B | 750M | 1.11B | 1.14B | 1.24B | 956M | 511.7M | -269.3M | 233.7M | 117.7M |
| Discontinued Operations | -2M | -126M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.54B | 1.52B | 1.73B | 1.86B | 1.77B | 1.62B | 1.55B | 1.77B | 2.01B | 2.33B | 1.79B | 1.58B | 2.46B | 0 | 0 |
| EPS (Diluted) | 2.77 | 2.35 | 3.18 | 3.76 | 3.25 | 2.69 | 1.60 | 2.37 | 2.42 | 2.54 | 1.45 | 0.50 | -2.32 | 0.65 | 0.33 |
| EPS Growth % | 28.9% | -26.1% | -15.43% | 15.69% | 20.82% | 68.13% | -32.49% | -2.07% | -4.72% | 75.17% | 190% | 121.55% | -456.92% | 96.97% | - |
| EPS (Basic) | - | 2.36 | 3.21 | 3.82 | 3.28 | 2.71 | 1.61 | 2.40 | 2.46 | 2.64 | 1.48 | 0.51 | -1.16 | 0.67 | 0.34 |
| Diluted Shares Outstanding | 460M | 457M | 454M | 456M | 455M | 464M | 468M | 469M | 473M | 477.4M | 470M | 476M | 358.2M | 357.8M | 354.1M |
| Basic Shares Outstanding | 348M | 334M | 319M | 312M | 307M | 310M | 302M | 268M | 249M | 237M | 232.9M | 203.5M | 343.7M | 351M | 349.7M |
| Dividend Payout Ratio | - | 142.78% | 100.78% | 83.19% | 96.33% | 116.23% | 197.33% | 140.12% | 118.95% | 102.47% | 87.34% | 96.61% | 65.43% | 36.07% | 11.89% |
Quick answers to the most common questions about buying QSR stock.
For fiscal year 2025, Restaurant Brands International Inc. (QSR) reported total revenue of $9.43B. This represents a 378.7% increase compared to $1.97B in 2012.
Restaurant Brands International Inc. (QSR) is profitable, generating $776.0M in net income for the fiscal year ending 2025 with a net profit margin of 8.2%.
Restaurant Brands International Inc. (QSR) reported an operating income of $2.24B, resulting in an operating profit margin of 23.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Restaurant Brands International Inc. (QSR) generated $3.88B in gross profit for the year, representing a gross profit margin of 41.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin Volatility and High Leverage
Metrics are mathematically derived from official filings.
Growth Momentum Fading Post-Acquisition
Revenue growth decelerated from a peak of 26.2% in 2024Q4 to 4.6% in 2026Q2, suggesting the inorganic lift from the Carrols acquisition is fading and core organic momentum is moderating in a competitive landscape.
The sharp deceleration from the 2024 growth surge indicates the initial revenue pop from the Carrols acquisition and other strategic moves is normalizing. While comparable sales growth remained positive in the latest quarter, the trend points to a reliance on menu pricing and limited unit growth to sustain top-line expansion in an increasingly competitive quick-service environment.
Volatile Gross Margin Signals Structural Risk
Gross margin swung dramatically from 49.6% in 2026Q1 to 34.5% in 2026Q2, a volatile pattern that underscores the sensitivity of the Tim Hortons supply chain to commodity costs and promotional activity.
The significant quarter-over-quarter volatility in gross margin appears to be driven by the timing of supply chain revenue recognition and the costs associated with promotional roll-outs. This structural margin risk is exacerbated by the company's dual role as both a franchisor and a distributor, making it vulnerable to input cost inflation that may not be immediately pass-through to franchisees.
Operating Leverage Masks Underlying Cost Tensions
Operating margin expanded to 27.7% in 2026Q2, yet this improvement appears disconnected from gross margin performance, suggesting non-recurring items or favorable accounting treatments may be inflating the profitability picture.
The strong operating margin in the latest quarter is not mirrored in the gross margin performance, suggesting that non-operating gains or favorable accounting treatments may be inflating the profitability picture. Underlying SG&A discipline appears stable, but the lack of a consistent correlation between gross profit growth and operating income expansion raises questions about the true scalability of the corporate overhead structure.
EPS Volatility Dwarfs Core Operational Performance
Diluted EPS of $1.45 in 2026Q2 represents a 150% year-over-year increase, but the wild swings in quarterly earnings, including a -68.4% drop in 2025Q4, point to significant non-operational noise obscuring core franchise earnings.
The erratic EPS trajectory, marked by quarters of deep contraction followed by sharp rebounds, suggests that reported earnings are heavily influenced by items such as tax adjustments, fair value changes in financial instruments, or restructuring charges. Investors should scrutinize the net income line for the consistency of cash earnings versus accrual-based accounting adjustments, as the volatility may obscure the underlying franchise royalty cash flow stream.
Margin Erosion Amidst Growth Spend
The 2026Q2 EPS miss against consensus, despite revenue growth, suggests that the costs of accelerating the 'Reclaim the Flame' modernization and integrating recent acquisitions are eroding profitability faster than management commentary acknowledges.
Short-sellers would focus on the disconnect between top-line growth and bottom-line execution. The elevated SG&A expenses and the volatile cost of goods sold indicate that the operational turnaround at Burger King and the integration of Carrols are creating margin friction that may persist. Furthermore, the high leverage level amplifies earnings risk if the current margin pressure continues, potentially limiting financial flexibility for future strategic moves.