Restaurant Brands International (RBI) has reported net income attributable to common shareholders of $159m for the first quarter of 2025, compared to $230m posted for the same period the previous year.
RBI is the parent company of quick service restaurant brands Tim Hortons, Burger King, Popeyes, and Firehouse Subs.
For the quarter ended 31 March 2025, the company witnessed a 21.3% increase in total revenues to $2.14bn, compared to $1.74bn in the same period last year.
RBI experienced a downturn in profitability, with income from operations dropping by 20% to $435m, down from $544m in Q1 2024.
Net income from continuing operations also took a hit, falling to $223m from $328m in the previous year, while diluted earnings per share from continuing operations were reported at $0.49 compared to $0.72 in Q1 2024.
The company's system-wide sales growth stood at 2.8%, with international sales growing by 8.6%. The global comparable sales remained nearly flat at 0.1%.
At the end of the quarter, RBI saw a net restaurant growth of 3.3%, with a total of 32,149 restaurants, an increase from 31,113 at the end of Q1 2024.
Burger King's system-wide sales reached $2.7bn in Q1 2025, a slight decrease from $2.753bn in the previous year.
The brand's adjusted operating income was $103m in Q1 2025, down from $106m in Q1 2024.
Revenue stood at $356m for the brand in Q1 and comparable sales at a stagnant 0.1%.
Tim Hortons reported system-wide sales of $1.63bn, from $1.725bn. It also saw a decrease in adjusted operating income to $220m from $224m and a drop in revenue to $903m.
Comparable sales remained at 0.1%, a significant decline from the 6.9% seen in the same period last year.
Popeyes China's system-wide sales were $1.47bn, a slight decrease from $1.51bn, with adjusted operating income growing to $60m from $58m and revenue increasing to $194m.
The brand's comparable sales growth was 4%, down from 5.7%.
Firehouse Subs brands showed growth with system-wide sales of $322m, up from $301m, and adjusted operating income increasing to $11m from $10m.
Revenue rose to $54m, and comparable sales saw a slight increase to 0.6%.
RBI chief executive officer Josh Kobza said: "We are making solid progress executing the fundamentals of our business, despite a slower start to the year. We have clear growth plans across each of our brands and strong alignment with our franchisees. We're seeing encouraging momentum in Q2 and combined with responsible cost management, are on track to deliver stronger results through the balance of the year and achieve at least 8 percent organic adjusted operating income growth in 2025."
In 2025, RBI will continue to project adjusted interest expenses between $500m and $520m and consolidated capital expenditures between $400m and $450m.
The company will also maintain its long-term performance expectations, aiming for 3%+ comparable sales growth and 8%+ organic adjusted operating income growth from 2024 to 2028.
