Is Restaurant Brands / QSR Halal?
Screener: No — Restaurant Brands fails Shariah screening as of September 2026. Debt-to-market-cap is ~53%, far above the 33% ceiling. The quick-service restaurant business (Tim Hortons, Burger King, Popeyes) passes step one, but the balance sheet — a legacy of the debt-funded Burger King merger — carries too much interest-bearing debt. Net leverage did improve to 4.1x in Q2, but it is not close to screen-compliant.
Screen 1: Business activity — pass
Restaurant Brands International owns Tim Hortons, Burger King, and Popeyes — about 33,000 quick-service restaurants worldwide, operating overwhelmingly on a franchised model. Quick-service restaurants are not a prohibited industry under any major methodology (AAOIFI, Dow Jones Islamic Market, FTSE, MSCI Islamic). The problem is entirely financial.
Screen 2: Financial ratios — fail
From RBI's June 30, 2026 balance sheet (the company reports in US dollars) and market data observed September 2026:
- Gross interest-bearing debt: US$13,206M long-term debt + US$82M current portion of long-term debt and finance leases ≈ US$13.29B. (Cash was US$1,063M; the company reported net leverage of 4.1x.)
- Market cap: ≈ US$24.98B (NYSE: ~US$71.64 on ~349M shares; September 25, 2026).
- Debt-to-market-cap: (13.29 ÷ 24.98) × 100 ≈ 53.2% ≈ 53% — far above the 33% ceiling. Fail.
Because the debt screen fails so decisively, the remaining ratio screens are not applied — the result cannot be rescued by the cash or income screens.
Q2 2026 results (August 6, 2026)
RBI reported revenue of US$2.52B (+4.6% year over year), net income from continuing operations of US$665M, diluted EPS of US$1.45, adjusted diluted EPS of US$1.07 (a 3.2% beat), and adjusted EBITDA of US$810M at a 32.1% margin. System-wide sales grew 6.4% and comparable sales 3.8% — Burger King delivered 8.6% comparable-sales growth and the International segment 10.7%, while Popeyes comparable sales fell 5.1%. The company returned US$435M to shareholders through dividends and buybacks and reduced net leverage to 4.1x. Operationally healthy — but leverage remains roughly 60% above what Shariah screens permit.
The dividend (US$0.65 quarterly)
RBI pays a quarterly dividend of US$0.65 per share (US$2.60 annualized, about a 3.6% yield at recent prices), next payable October 2, 2026 to shareholders of record September 18, 2026. For investors holding a stock that fails screening, many scholars hold that dividends received should be treated as non-compliant income and donated; consult your own scholar.
What could change the screener
- Deep deleveraging — debt would need to fall below ~US$8.2B (at the current market cap) to clear the 33% ceiling. At 4.1x net leverage, that is years of paydown away.
- A large market-cap recovery combined with debt paydown — the denominator matters too.
- Continued franchising-driven cash generation directed at debt rather than buybacks.
Halal alternatives and peers
RBI joins Canada's high-debt FAILs — BCE (FAIL, ~151%), Telus (FAIL, ~164%), and Pembina Pipeline (FAIL, ~38%) — as a business that screens fine but a balance sheet that does not. For compliant consumer exposure, Dollarama (PASS, 6.1%) and Couche-Tard (PASS*) pass. See our full screener database or the Shariah-compliant ETF route (WSHR, SPUS) in our complete guide.
FAQ
Is Restaurant Brands halal to invest in?
As of September 2026: no, under the AAOIFI-style screening we apply. Restaurant Brands' business (Tim Hortons, Burger King, Popeyes quick-service restaurants) is permissible, but its debt-to-market-cap is ≈53% — well above the 33% ceiling. This is a screening result, not a religious ruling.
How was the 53% debt ratio calculated?
From RBI's June 30, 2026 balance sheet: US$13,206M long-term debt + US$82M current portion of long-term debt and finance leases ≈ US$13.29B gross interest-bearing debt, against a market cap of ≈US$24.98B (NYSE: ~US$71.64, September 25, 2026) — (13.29 ÷ 24.98) × 100 ≈ 53.2% ≈ 53%, well above the 33% ceiling.
How did Restaurant Brands perform in Q2 2026?
Reported August 6, 2026: revenue US$2.52B (+4.6% year over year), net income from continuing operations US$665M, diluted EPS US$1.45, adjusted EBITDA US$810M (32.1% margin). System-wide sales grew 6.4% and comparable sales 3.8% — Burger King +8.6% and International +10.7%, offsetting Popeyes at −5.1%. RBI reduced net leverage to 4.1x and returned US$435M via dividends and buybacks.
What does Restaurant Brands' dividend look like?
RBI pays a quarterly dividend of US$0.65 per share (US$2.60 annualized, ~3.6% yield at recent prices), next payable October 2, 2026 to shareholders of record September 18, 2026. For investors holding a stock that fails screening, many scholars hold that dividends received should be treated as non-compliant income and donated; consult your own scholar.
What do Zoya, Musaffa, and ShariaPortfolio say?
No verified current third-party screening result for Restaurant Brands was found in public sources during our September 2026 research — not on Zoya, Musaffa, or ShariaPortfolio. Our FAIL result is an independent application of the AAOIFI-style screen; consult a scholar or screener of your choice before investing.