Restaurant Brands International Inc. QSR is scheduled to report second-quarter 2026 results on Aug. 6, before the opening bell.
In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 4.9% while the revenues beat the same by 1%.
Restaurant Brands' earnings surpassed the consensus mark in three out of the trailing four quarters and missed once, with the average surprise being 2%.
How Are QSR’s Estimates Placed for Q2?
The Zacks Consensus Estimate for the second quarter is pegged at an earnings per share of $1.03, up 9.6% year over year.
For revenues, the consensus mark is pegged at nearly $2.50 billion, indicating an increase of 3.9% from the prior-year quarter’s figure.
Let us check out the factors that are likely to have influenced the quarter.
Key Factors to Note Ahead of QSR’s Q2 Results
Restaurant Brands' second-quarter 2026 revenues are likely to have been supported by continued strength at Tim Hortons, where solid breakfast demand, expanding cold beverage sales, value-focused meal bundles and higher digital engagement are expected to have driven growth. Seasonal beverage innovation and sustained customer engagement are also likely to have supported performance during the quarter. Our model projects Tim Hortons revenues to increase 2.3% year over year to $1.11 billion.
International operations are also likely to have remained a key growth driver, backed by localized menu innovation, compelling value offerings and ongoing restaurant expansion across major markets such as China, Japan, Brazil, Spain, Germany and Australia. Burger King China's improving performance under its new joint venture and continued expansion at Firehouse Subs are expected to have supported overall systemwide sales. However, due to its reporting structure and the continued refranchising of company-operated restaurants, our model forecasts Burger King revenues to decline 11.4% year over year to $343.6 million despite healthy underlying brand momentum.
The company's bottom line is likely to have benefited from healthy comparable-sales growth across key brands, operating leverage, disciplined cost management and continued royalty income from its predominantly franchised business. Lower interest expense, ongoing share repurchases and productivity initiatives are also expected to have supported earnings growth by partially offsetting inflationary pressures.
On the flip side, second-quarter performance is likely to have been constrained by continued weakness at Popeyes, where soft comparable sales and ongoing turnaround initiatives may have weighed on results. Persistent beef inflation is likely to have continued to pressure restaurant-level margins, while higher Tim Hortons marketing expenses and a softer Canadian consumer environment might have limited profitability. Reflecting these headwinds, our model projects Popeyes Louisiana Kitchen revenues to decline 8.7% year over year to $191.8 million.
What Our Model Indicates for QSR
Our proven model does not conclusively predict an earnings beat for Restaurant Brands this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: The Earnings ESP for QSR is +2.20%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: QSR currently carries a Zacks Rank of 4 (Sell).
Restaurant Brands International Inc. Price, Consensus and EPS Surprise
Restaurant Brands International Inc. price-consensus-eps-surprise-chart | Restaurant Brands International Inc. Quote
Stocks Poised to Beat on Earnings
Here are a few stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
CAVA Group, Inc. CAVA currently has an Earnings ESP of +20.30% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.
Brinker International, Inc. EAT currently has an Earnings ESP of +0.12% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker earnings are expected to register a 23.3% year-over-year decline. EAT’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.8%.
Sweetgreen, Inc. SG has an Earnings ESP of +11.54% and a Zacks Rank of 2 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. Sweetgreen’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.
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Restaurant Brands International Inc. (QSR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).