Updated 2/23/26
Restaurant Brands International, better known by its ticker QSR, is the powerhouse behind some of the most recognizable names in fast food. If you’ve ever had a Whopper from Burger King, a coffee from Tim Hortons, or spicy chicken from Popeyes, you’ve contributed to the company’s global footprint. Formed back in 2014 through the merger of Burger King and Tim Hortons, QSR has grown into a global restaurant giant. It now operates on a heavily franchised model that brings in steady, high-margin revenue—music to the ears of dividend-focused investors.
Now let’s unpack what matters most to income investors looking at QSR today.
Recent Events
QSR has continued pushing its multi-brand growth agenda through 2025 and into early 2026. The “Reclaim the Flame” initiative for Burger King has matured past its early investment phase, with management pointing to improved guest metrics and sustained comparable sales momentum in the U.S. The effort involved significant near-term spending on remodels, marketing, and digital infrastructure, but the brand is showing signs that the investment is beginning to stick.
On the top line, the company closed out the fiscal year with total revenue of $9.43 billion, a meaningful step up from the prior year’s $8.4 billion. Net income landed at $902 million, and EPS came in at $2.63. That earnings figure is notably lower than recent historical peaks, reflecting the ongoing reinvestment cycle across all four brands—Burger King, Tim Hortons, Popeyes, and Firehouse Subs. Profitability is under some pressure, but cash generation remains robust.
Internationally, Popeyes continues to gain traction in Asian and European markets, and Tim Hortons remains a reliable anchor in Canada. The company’s global franchise count keeps expanding, which adds royalty revenue streams without demanding significant capital deployment from the parent company itself.
Key Dividend Metrics
💰 Forward Yield: 3.60%
📈 Five-Year Average Yield: 3.44%
🗓️ Last Dividend Payment: $0.62 per share
📌 Most Recent Ex-Dividend Date: December 23, 2025
💸 Annual Dividend: $2.60 per share
⚖️ Payout Ratio: 94.30%
📊 Dividend Growth: Consistent annual increases — most recently raised from $0.58 to $0.62 per quarter in early 2025
Dividend Overview
At a current yield of 3.60%, QSR sits above its five-year average yield of roughly 3.44% and comfortably outpaces the broader market’s average payout. For income-focused investors, that combination of above-average yield and a recognizable, franchised business model makes QSR a stock worth watching closely.
The company currently pays $2.60 per share annually, which represents an increase from the $2.48 per share it paid in 2024. That raise—from $0.58 to $0.62 per quarter—was implemented at the start of 2025 and has held steady through year-end, marking QSR’s latest chapter of consistent dividend growth. The payout ratio, however, has climbed to 94.3% on a trailing earnings basis, which warrants attention. With EPS at $2.63 and the annual dividend at $2.60, there is very little gap between what the company earns and what it pays out.
The key counterpoint here is that the franchised model generates cash flows that run well ahead of reported net income. Free cash flow of $1.39 billion provides a much more comfortable picture of dividend sustainability than the earnings-based payout ratio alone would suggest. Income investors should look to cash flow coverage, not just the earnings payout, when assessing the dividend’s durability.
Dividend Growth and Safety
QSR’s dividend history shows a clear and deliberate pattern of annual increases. The quarterly dividend sat at $0.55 throughout 2023, moved to $0.58 in early 2024, and then stepped up again to $0.62 in early 2025—where it has remained. That’s a cumulative increase of roughly 12.7% over just two years, a respectable pace for a large-cap, franchise-driven business. Management has treated the dividend as a core component of shareholder return, and there has been no sign of hesitation even as earnings have been compressed by reinvestment spending.
Safety, in this case, rests almost entirely on cash flow rather than reported earnings. The company generated $1.57 billion in operating cash flow and $1.39 billion in free cash flow over the most recent fiscal year. Against a total annual dividend obligation that runs well under $1 billion, that free cash flow coverage ratio is healthy. The dividend consumes a manageable portion of actual cash generation, even as the earnings-based payout ratio looks stretched at 94.3%.
The one genuine constraint on future dividend growth is that the company doesn’t have unlimited room to keep raising the payout without either growing earnings or keeping capital expenditures lean. Both are achievable given the capital-light franchise model, but investors should expect modest, incremental raises rather than aggressive step-ups in the near term.
Analyst Ratings
With no current analyst ratings on record at the time of this update, the most useful reference point is QSR’s own financial profile relative to its peers and recent history. The stock is trading at $67.53, sitting in the lower half of its 52-week range of $58.71 to $73.70. That positioning suggests the market has already priced in a fair amount of caution around near-term earnings, leaving room for a re-rating if the company demonstrates improving profitability or faster-than-expected brand recovery.
The trailing P/E of 25.68 reflects the current earnings compression—it looks elevated relative to historical norms for QSR, but that multiple would compress meaningfully if EPS recovers toward the $3.00-plus range that prior years demonstrated is achievable. Price-to-book of 6.44 is consistent with a capital-light, high-return franchise operation, even if it signals the stock is not cheap on an asset basis.
From an income perspective, the current yield of 3.60% sitting above the five-year average is the kind of signal that has historically represented a reasonable entry point for dividend investors. That doesn’t guarantee near-term price appreciation, but for those prioritizing income, locking in above-average yield with a business backed by durable brands and strong free cash flow has historically been a sound posture.
Earnings Report Summary
QSR closed out its most recent fiscal year with revenue of $9.43 billion, up from $8.4 billion the year prior. The top-line growth reflects a combination of higher system-wide sales across all four brands, continued international unit expansion, and increased supply chain and distribution revenue from the franchise network. It’s a genuine improvement in scale and reach.
Net income for the full year came in at $902 million, producing EPS of $2.63. Those figures represent a meaningful step down from the prior year’s $1.4 billion in net income and $3.18 in EPS, continuing a trend of compressed bottom-line results as the company absorbs the costs of its multi-brand modernization programs. Profit margin stands at 8.23%, reflecting the weight of reinvestment spending on the income statement.
Operating cash flow of $1.57 billion and free cash flow of $1.39 billion tell a more favorable story about the underlying business. The gap between reported earnings and cash generation is substantial, and it’s that cash generation capacity that underpins the dividend commitment. Return on equity of 24.01% and return on assets of 6.20% confirm that the core franchise model continues to earn attractive returns even during a period of elevated investment.
Looking ahead, management’s ability to convert the top-line growth into improved net income will be the key variable for both earnings momentum and dividend growth headroom. The brands are gaining traction; the question is how quickly that traction translates into operating leverage and margin recovery.
Financial Health and Stability
QSR’s balance sheet carries a significant debt load—a feature, not a bug, of the leveraged buyout history embedded in its Burger King and Tim Hortons roots. Total debt remains substantial, running well into the tens of billions, and the company’s book value per share of $10.49 against a stock price of $67.53 reflects how much of the enterprise value is financed with debt rather than equity. The price-to-book ratio of 6.44 makes that clear.
Despite the leverage, the company’s operating model generates enough cash to service that debt comfortably. Operating cash flow of $1.57 billion provides a meaningful cushion, and the franchise model’s capital-light nature means QSR doesn’t need to spend heavily on physical assets to sustain or grow the business. Capital expenditures run at a fraction of operating cash flow, which is why free cash flow of $1.39 billion closely tracks the operating figure.
Return on equity of 24.01% is solid for a consumer brand company, and it reflects disciplined capital allocation within the franchise system. The profit margin of 8.23% is modest in absolute terms but is a function of the revenue base including pass-through supply chain revenue that carries thin margins. The core royalty and franchise fee business operates at much higher margins than the consolidated figure implies.
Valuation and Stock Performance
QSR is currently trading at $67.53, sitting in the lower half of its 52-week range of $58.71 to $73.70. The stock has traded closer to the middle of that band recently, and the current price represents a discount from the upper end of where shares have been valued over the past year. For income investors, a price closer to $67 than $74 means a more attractive entry yield—and at 3.60%, the current yield does sit above the stock’s five-year average.
The trailing P/E of 25.68 looks elevated given that EPS of $2.63 reflects a period of compressed profitability. Should earnings recover toward prior-year levels in the $3.00 to $3.20 range, the effective multiple on normalized earnings would drop to something closer to 21 to 22 times—a more reasonable valuation for a global franchise business with durable brand assets and consistent cash flow. Price-to-book at 6.44 is consistent with the capital-light, high-ROE profile of the franchise model.
The stock’s beta of 0.59 is a notable characteristic for income investors. QSR moves at roughly 60% of the volatility of the broader market, which aligns with the defensive nature of its franchised revenue streams. Fast food tends to hold up reasonably well across economic cycles, and that low-beta profile reinforces QSR’s role as a steadier, income-generating holding rather than a high-growth vehicle.
Risks and Considerations
The most immediate risk is the elevated payout ratio. At 94.3% on a trailing earnings basis, the dividend has virtually no coverage cushion from reported net income. The saving grace is free cash flow, which covers the dividend obligation more comfortably—but any meaningful deterioration in cash generation would put dividend growth on pause and, in a severe scenario, could raise questions about the current level.
The debt load remains a structural consideration. Carrying tens of billions in debt means a sustained rise in interest rates, or any refinancing at unfavorable terms, could increase interest expense and further compress net income. The company’s cash flow generation has historically been sufficient to manage this, but it limits financial flexibility.
Competition in the quick-service restaurant space is relentless. McDonald’s, Yum Brands, and a growing roster of fast-casual concepts continue to compete aggressively for consumer dollars. Burger King still faces a brand perception gap in the U.S. relative to its main rival, and closing that gap requires sustained investment in operations, marketing, and store quality. Popeyes and Tim Hortons are performing well, but they can’t carry the full weight of the portfolio if Burger King stumbles.
Finally, QSR’s global revenue exposure cuts both ways. International expansion adds diversification and long-term growth potential, but it also introduces foreign currency translation risk. A strengthening U.S. dollar can reduce the reported value of royalties earned in Canadian dollars, British pounds, or Brazilian reais—an effect that doesn’t always get enough attention when evaluating the company’s headline numbers.
Final Thoughts
Restaurant Brands International is not the kind of stock that generates excitement in growth-oriented circles, but it continues to deliver what income investors actually need: a reliable, growing dividend backed by durable cash flows. The raise from $0.58 to $0.62 per quarter in early 2025 marks another year of consecutive dividend growth, and at $2.60 per share annually, QSR is paying more than it ever has.
The elevated payout ratio on an earnings basis is the main watch item. Free cash flow tells a more comfortable story, but investors should monitor whether management can translate revenue growth into earnings recovery. A return toward $3.00-plus in EPS would reset the payout ratio to a more sustainable range and likely support further dividend increases.
At $67.53 with a 3.60% yield above the five-year average, a low-beta profile, and a franchised model that keeps generating cash regardless of near-term earnings noise, QSR remains a credible holding for dividend growth investors willing to be patient while the brands continue their evolution.