RBI dividend: history and cash coverage
RBI's dividend rose each year from $2.12 in 2021 to $2.48 in 2025, and the 2026 target is $2.60. RBI's dividend is covered by cash, but only narrowly: dividends and exchangeable partnership-unit distributions consumed US$1,108 million, leaving about US$305 million before other uses.
How much does RBI pay in dividends over time?
The dividend grows slowly in the base case, from $2.60 to $2.76 and then $2.92. That reflects 6% annual growth, below management’s operating-income ambition, while the company targets a durable dividend and roughly 60% payout ratio. The bear case holds at $2.60 before cutting to $2.34 if cash pressure persists. The bull case reaches $3.10 as investment needs fall. The recent dividend rose each year from $2.12 in 2021 to $2.48 in 2025, and the 2026 target is $2.60.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 9,434 | 8,406 | 7,022 | 6,505 | 5,739 |
| EPS, diluted | 2.63 | 3.18 | 3.76 | 3.25 | 2.69 |
| Dividend per share | 2.48 | 2.32 | 2.20 | 2.16 | 2.12 |
Does RBI's dividend fit its free cash flow?
Across 2021–2025, dividends and buybacks absorbed almost all the free cash flow shown in the schedule. In 2023, distributions exceeded that year’s free cash flow, while net debt at the end of the period was slightly higher than at the beginning. Acquisitions also arrived in bursts, and debt issued in 2024 largely reflected refinancing rather than new spending power.
After capital spending and finance-lease principal, 2025 free cash flow was US$1,413 million. Dividends and exchangeable partnership-unit distributions consumed US$1,108 million, leaving about US$305 million before other uses.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,413 | 1,266 | 1,170 | 1,359 | 1,589 |
| − Dividends paid | 1,108 | 1,029 | 990 | 971 | 974 |
| − Share buybacks | 0 | 0 | 500 | 326 | 551 |
| = Free cash flow not paid out | 304 | 234 | 58 | 59 | |
| = Paid out more than the free cash flow | 323 | ||||
| Paid to shareholders | 1,108 | 1,029 | 1,490 | 1,297 | 1,525 |
What could change RBI's dividend?
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,980 (1,753 / 2,060) | 2,110 (1,715 / 2,255) | 2,234 (1,694 / 2,426) |
| Shares (millions) | 450 (454 / 445) | 450 (457 / 442) | 450 (460 / 440) |
| Dividends per share | 2.60 (2.60 / 2.60) | 2.76 (2.60 / 2.85) | 2.92 (2.34 / 3.10) |
| Price to earnings | 16.00 (13.50 / 18.00) | 16.00 (12.50 / 19.00) | 15.50 (11.50 / 20.00) |
What is RBI's dividend yield today?
Revenue has grown across the five-year span, but operating margin narrowed and the company’s own free cash flow as a share of revenue fell. Diluted EPS has retreated from its 2023 high. Net debt was US$12,416 million in 2025. The company’s own free cash flow yield is 4.4% before stock-based pay and 3.9% after it. The dividend yield is 3.7%, while the buyback yield is 0.0%.