Restaurant Brands International (QSR, Financial), the parent company of Burger King, Tim Hortons, and Popeye's, surpassed Q4 EPS expectations and reported a rise in consolidated comparable sales growth to 2.5%, up from 0.3% in the previous quarter. The company reaffirmed its long-term outlook, projecting comparable sales growth of over 3%, net restaurant growth of over 5%, and system-wide sales growth of over 8% from 2024 to 2028.

These results follow McDonald's (MCD, Financial) better-than-expected Q4 report, which included a return to positive global comps at +0.4%, despite an E. coli outbreak in September and October. QSR, particularly Burger King, appears to have benefited from McDonald's challenges.

• Burger King reported a positive turnaround with Q4 comps at +1.1%, compared to a -0.7% in Q3. In the U.S., comps were stronger at +1.5%, while McDonald's reported -1.4%. This indicates Burger King gained market share, aided by promotions like the "Million Dollar Whopper" deal, where they sold a million Whoppers for $1.
• Popeye's Louisiana Kitchen (PLK) saw U.S. comps increase by 0.1% after a -4.0% performance last quarter. New value offerings, such as the $6 big box value and the protein-only 3-for-$5 deal, helped expand its market share in the chicken QSR segment. QSR is also simplifying operations and enhancing technology at PLK, aiming for all U.S. locations to have advanced digital systems by 2026.
• Tim Hortons, QSR's Canada-based coffeehouse and breakfast chain, maintained steady comp growth at +2.2%, slightly below last quarter's +2.3%. The chain, contributing about 40% of QSR's total revenue, continues to see strong demand for its breakfast menu, including sandwiches, wraps, and new items like Canadian scrambled eggs.

Overall, QSR delivered a solid earnings report, and the reaffirmation of its long-term outlook suggests a promising future for its ongoing turnaround efforts at Burger King.