QSRMEDIUM SIGNALOPERATIONAL10-K

Restaurant Brands International completed the Carrols acquisition, significantly expanding its company-owned restaurant footprint while maintaining strong revenue growth despite margin pressures.

The Carrols acquisition represents a major operational shift, as evidenced by the new definition requiring explanation of company vs. franchised restaurants and the significant increase in inventory and capital expenditures. While RBI plans to refranchise most acquired locations over time, the near-term integration will require careful execution to maintain the company's historically asset-light franchise model.

Comparing 2026-02-20 vs 2025-02-21View on EDGAR →
FINANCIAL ANALYSIS

Revenue grew a healthy 12.2% to $9.4B with operating cash flow increasing 14% to $1.7B, demonstrating strong underlying business momentum. However, net income declined sharply by 37.7% to $139M, likely reflecting integration costs and operational challenges from the Carrols acquisition, while the 32% increase in capital expenditures and 44% inventory surge confirm the temporary shift toward more company-owned operations. The overall picture shows a strategically sound but execution-dependent transformation that pressured near-term profitability despite top-line growth.

FINANCIAL STATEMENT CHANGES
Inventory
Balance Sheet
+44.4%
$142.0M→$205.0M

Inventory surged 44.4% — growing faster than typical sales pace; potential demand softening or supply chain overcorrection.

Net Income
P&L
-37.7%
$223.0M→$139.0M

Net income declined 37.7% — review whether driven by operations, interest costs, or non-recurring items.

Capital Expenditure
Cash Flow
+31.8%
$201.0M→$265.0M

Capital expenditure jumped 31.8% — major investment cycle underway; assess returns on deployment.

Current Assets
Balance Sheet
+24%
$2.3B→$2.8B

Current assets grew 24% — improving short-term liquidity or inventory/receivables build.

Current Liabilities
Balance Sheet
+22.3%
$2.4B→$2.9B

Current liabilities rose 22.3% — increased short-term obligations, watch current ratio.

Stockholders Equity
Balance Sheet
+16.8%
$3.1B→$3.6B

Equity base grew 16.8% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Operating Cash Flow
Cash Flow
+14%
$1.5B→$1.7B

Operating cash flow grew 14% — strong conversion of earnings to cash, healthy business fundamentals.

Revenue
P&L
+12.2%
$8.4B→$9.4B

Revenue growing 12.2% — solid top-line momentum, watch margins for quality of growth.

Gross Profit
P&L
+11.2%
$743.1M→$826.5M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2026-02-20
PRIOR — 2025-02-21
ADDED
In addition, as of February 13, 2026, there were 109,356,045 Class B exchangeable limited partnership units of Restaurant Brands International Limited Partnership which are exchangeable, on a one for one basis, into common shares of the Registrant.
Unless the context otherwise requires or unless otherwise indicated, all references to (i) we, us, our, "RBI," and Company refer to Restaurant Brands International Inc.
and its subsidiaries, (ii) "Partnership" refer to the Restaurant Brands International Limited Partnership, (iii) dollars or $ are to the currency of the United States, (iv) Canadian dollars or C$ are to the currency of Canada, (v) Company restaurants refer to those restaurants owned by us, (vi) our restaurants or system-wide restaurants include Company restaurants and franchised restaurants, and (vii) "Carrols Acquisition" refers to our acquisition of Carrols Restaurant Group Inc.
Business Company Overview We are one of the world s largest quick service restaurant ( QSR ) companies with nearly $47 billion in annual system-wide sales and over 33,000 restaurants in more than 120 countries and territories as of December 31, 2025.
As of the date of this Annual Report on Form 10-K, over 95% of system-wide restaurants were franchised restaurants.
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REMOVED
In addition, as of February 14, 2025, there were 127,038,577 Class B exchangeable limited partnership units of Restaurant Brands International Limited Partnership which are exchangeable, on a one for one basis, into common shares of the Registrant.
Unless the context otherwise requires, all references to we , us , our and Company refer to Restaurant Brands International Inc.
Unless the context otherwise requires, all references in this section to Partnership are to Restaurant Brands International Limited Partnership and its subsidiaries, collectively.
All references to $ or dollars in this report are to the currency of the United States unless otherwise indicated.
All references to Canadian dollars or C$ are to the currency of Canada unless otherwise indicated.
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