A month has gone by since the last earnings report for Restaurant Brands (QSR). Shares have added about 8.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Restaurant Brands due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Restaurant Brands Q4 Earnings & Revenues Top Estimates

Restaurant Brands reported fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.

Earnings & Revenue Discussion

In the quarter under review, QSR reported adjusted earnings per share (EPS) of 75 cents, surpassing the Zacks Consensus Estimate of 73 cents. The bottom line increased 4.5% from 72 cents reported in the prior-year quarter.

Quarterly net revenues of $1.82 billion beat the consensus mark of $1.8 billion. The top line increased 7.8% on a year-over-year basis. The upside was driven by strong system-wide sales growth and the passing on of elevated commodity prices to franchisees. On a reported basis, this was partially offset by unfavorable FX movements.

During the quarter, global system-wide sales rose 9.6% year over year.

Segmental Revenues

Restaurant Brands operates through five segments — Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs (FHS) and International (INTL).

In the fourth quarter, revenues from Tim Hortons totaled $1.02 billion, up 3.2% from the prior-year quarter’s levels. System-wide sales rose 9% year over year compared with 10.5% growth reported in the prior-year quarter. Comps rose 8.4% year over year compared with 10.1% a year ago. Net restaurant growth was 0.1% year over year against a 1.1% fall reported in the prior-year quarter.

Burger King’s revenues amounted to $345 million, indicating 11% growth from the year-ago quarter’s levels. System-wide sales rose 4.9% year over year compared with 5.5% growth reported in the prior-year quarter. Comps climbed 6.3% year over year compared with 5% growth in the year-earlier quarter. Net restaurant growth was down 3.3% year over year compared with a 0.6% fall reported in the prior-year quarter.

Popeyes Louisiana Kitchen generated revenues of $182 million, up 12.4% from the prior-year levels. System-wide sales growth came in at 11.2% year over year compared with 6.5% growth reported in the prior-year quarter. Comps rose 5.5% year over year compared with 1.7% growth reported in the prior-year quarter. Net restaurant growth was 4.9% year over year compared with 6.7% growth a year ago.

Firehouse Subs recorded revenues of $51 million, up 41.9% from the year-earlier levels. System-wide sales growth was 7.8% compared with 6.9% reported in the previous quarter. Net restaurant growth was 3% compared with 2.4% in the prior year quarter. Comps rose 3.5% year over year.

Fourth-quarter revenues from the International segment came in at $224 million, up 15.8% year over year. System-wide sales growth came in at 12.8% year over year compared with 18.5% growth reported in the prior-year quarter. Comps grew 4.6% year over year compared with 10.5% growth reported in the prior-year quarter. Net restaurant growth was 8.9% year over year compared with a 9.1% increase a year ago.