Restaurant Brands International (NYSE:QSR) opened 2026 with Q1 revenue of US$2.3 billion and basic EPS of US$0.97, supported by net income from ongoing operations of US$338 million. The company reported an increase in quarterly revenue from US$2.1 billion in Q1 2025 to US$2.3 billion in Q1 2026, while basic EPS over the same period moved from US$0.49 to US$0.97. The latest quarter sits alongside trailing twelve month EPS of US$3.23. Taken together with 3.2% same restaurant sales growth, these results highlight a quarter where profitability and unit level performance are a key focus for investors.

See our full analysis for Restaurant Brands International.

With the headline numbers on the table, the next step is to see how this earnings release aligns with the prevailing narratives about Restaurant Brands International's growth, profitability, and risk profile.

Margins And EPS Back Earnings Story

• Trailing 12 month net income from ongoing operations sits at US$1.1b on revenue of US$9.6b, giving an 11.3% net margin compared with 10.8% a year earlier, while trailing EPS is US$3.23 versus Q1 basic EPS of about US$0.97.
• Consensus narrative highlights franchise led expansion and operational improvements as earnings drivers, and the margin lift to 11.3% plus Q1 net income of US$338 million on US$2.3b of revenue both support the view that efficiency and unit economics matter as much as top line growth.
  • Same restaurant sales growth of 3.2% in Q1 2026 versus 0.1% in Q1 2025 aligns with that focus on store level performance in the consensus story.
  • The move from quarterly net income of US$161 million in Q1 2025 to US$338 million in Q1 2026 gives investors tangible evidence that profitability has tracked with those operational changes rather than relying only on new units.

33,000 Stores, Modest Same Store Lift

• Total restaurants reached 32,985 in Q1 2026, up from 32,149 in Q1 2025, while same restaurant sales growth moved from 0.1% to 3.2% across that period.
• Consensus narrative discusses franchise led international expansion and menu refreshes as supporting recurring, capital light revenue, and the combination of roughly 800 net new restaurants over the last year plus higher same store growth lines up with that perspective, although the modest pace of same store gains keeps expectations anchored.
  • Store count rising from 32,423 in Q3 2025 to 32,985 in Q1 2026 shows the expansion has been steady, which is consistent with the view that new markets like China, India and Brazil are important over time.
  • Same restaurant sales growth of 4.0% in Q3 2025 and 3.2% in Q1 2026 indicates that while growth is present, it is not a surge, which is a useful check on any overly aggressive claims about demand.

To see how other investors are weighing this mix of unit growth, margins, and sales trends, you can go straight to the community’s real time narrative on Restaurant Brands International via the See what the community is saying about Restaurant Brands International

Valuation, Debt Coverage And Dividend Trade Off

• The stock trades at a P/E of 25.5x versus the US Hospitality average of 20.6x and a peer average of 38.8x, with a current price of US$79.14 compared with a DCF fair value of about US$82.16 and a dividend yield of 3.29% alongside a risk flag that debt is not well covered by operating cash flow.
• Consensus narrative points to higher earnings visibility and margin changes, yet the flagged leverage coverage issue and insider selling over the last three months give more cautious investors concrete talking points to balance against the 13.3% trailing earnings growth and the shares trading about 3.7% below DCF fair value.
  • Earnings of US$1.1b over the last 12 months versus US$952 million a year earlier are consistent with the idea that the business is currently producing enough profit to support the dividend, even as cash flow coverage of debt is described as weak.
  • The mix of a 3.29% dividend yield, a P/E premium to the broader industry, and the small gap between the US$79.14 price and US$82.16 DCF fair value helps explain why some investors focus closely on leverage and capital allocation before leaning too far into either side of the debate.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Restaurant Brands International on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seeing both risks and rewards in this story so far, it makes sense to move quickly, review the numbers yourself, and stress test your own thesis against the 4 key rewards and 2 important warning signs.

See What Else Is Out There

Restaurant Brands International carries a P/E premium, modest same restaurant sales growth, and a flagged issue where debt is not well covered by operating cash flow.

If that mix of leverage concerns and valuation leaves you cautious, it is worth checking companies screened for stronger financing and liquidity through the solid balance sheet and fundamentals stocks screener (44 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.