Restaurant Brands International (QSR) AI Stock Analysis

• Market Cap: $30.48B
• Dividend Yield: 3.64%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.35
• Revenue Growth: 21.80%
• EPS Growth: -34.35%
• Country: US
• Employees: 37,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.03
• Shares Outstanding: 327,801,850
• 10 Day Avg. Volume: 1,689,958
• 30 Day Avg. Volume: 2,530,127
• PEG Ratio: -1.28
• Price to Book (P/B): 6.69
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 15.97
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 5.07
• Enterprise Value/Gross Profit: 63.18
• Enterprise Value/Ebitda: 22.80
• 1Y Price Target: $76.29
• Price Target Upside: 13.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 69 Neutral
• Price Target: $73.00 ▲(8.94% Upside)

Restaurant Brands International's overall score reflects strong financial performance and strategic growth in key segments, particularly Tim Hortons and International. While valuation and technical indicators are moderately positive, challenges in maintaining profitability and managing costs, especially commodity inflation, are notable risks. The company's strategic initiatives and dividend yield enhance its attractiveness, but careful management of financial and operational challenges is crucial for sustained growth.

Positive Factors

Revenue Growth

The company's strong revenue growth, exceeding expectations, indicates robust demand and effective execution of its strategic initiatives, supporting long-term expansion.

Franchising Model

The franchising model provides a stable revenue stream with lower operational risks, enabling scalable growth and sustained profitability over time.

International Expansion

Strong international growth reflects successful market penetration and brand acceptance, enhancing global market position and long-term revenue potential.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate rising costs and pricing pressures, which could hinder profitability and financial performance if not managed effectively.

Commodity Cost Inflation

Rising commodity costs, especially in key inputs like beef, can erode margins and increase pricing pressures, challenging cost management and profitability.

Bad Debt Expenses

Rising bad debt expenses suggest potential issues with receivables management, which could strain cash flow and impact financial stability if persistent.

Restaurant Brands International Business Overview & Revenue Model

Company Description

Restaurant Brands International Inc. (QSR) is one of the world's largest quick-service restaurant companies, headquartered in Toronto, Canada. It operates a diverse portfolio of well-known brands, including Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. The company focuses on providing high-quality food and exceptional customer service across its global network of franchised and company-owned restaurants. Through innovative menu offerings and strategic marketing initiatives, Restaurant Brands International aims to enhance its presence in the fast-food market and cater to evolving consumer preferences.

How the Company Makes Money

Restaurant Brands International generates revenue primarily through its franchising model, which allows the company to earn significant fees from franchisees based on sales and royalties. Additionally, it makes money from company-operated restaurants, where it retains a larger portion of revenues. The company also benefits from supply chain efficiencies and product distribution, which contribute to its earnings. Strategic partnerships, such as collaborations with food suppliers and technology firms, enhance operational capabilities and customer engagement, further driving revenue growth.

Restaurant Brands International Financial Statement Overview

Summary

Restaurant Brands International demonstrates solid revenue growth and operational efficiency, but faces challenges with declining net profit margins and high leverage. The company shows positive cash flow trends, which is a strength, but the high debt levels could pose risks if not managed carefully. Overall, the financial health is stable with room for improvement in profitability and leverage management.

Income Statement

Restaurant Brands International shows a steady revenue growth rate of 3.76% in the TTM, indicating positive momentum. However, the net profit margin has decreased from 12.15% in 2024 to 9.43% in the TTM, suggesting some pressure on profitability. The gross profit margin remains stable at around 37.6%, and the EBIT margin is strong at 24.07%, reflecting efficient operational management.

Balance Sheet

The company has a high debt-to-equity ratio of 4.82 in the TTM, which poses a risk due to significant leverage. However, the return on equity is robust at 26.89%, indicating effective use of equity to generate profits. The equity ratio is relatively low, suggesting a heavy reliance on debt financing.

Cash Flow

Free cash flow growth is positive at 9.72% in the TTM, showing improvement in cash generation. The operating cash flow to net income ratio is 0.58, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is strong at 0.85, suggesting good cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.26B	8.41B	7.02B	6.50B	5.74B	4.97B
Gross Profit	744.00M	3.02B	2.80B	2.60B	2.37B	1.97B
EBITDA	2.06B	2.66B	2.24B	2.07B	2.04B	1.50B
Net Income	922.00M	1.02B	1.19B	1.01B	838.00M	486.00M
Balance Sheet
Total Assets	25.67B	24.63B	23.39B	22.75B	23.25B	22.78B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.33B	1.14B	1.18B	1.09B	1.56B
Total Debt	1.96B	15.96B	14.52B	14.49B	14.62B	14.12B
Total Liabilities	20.50B	19.79B	18.66B	18.48B	19.39B	19.06B
Stockholders Equity	3.38B	3.11B	2.87B	2.50B	2.24B	2.17B
Cash Flow
Free Cash Flow	1.40B	1.30B	1.20B	1.39B	1.62B	804.00M
Operating Cash Flow	1.64B	1.50B	1.32B	1.49B	1.73B	921.00M
Investing Cash Flow	-359.00M	-660.00M	11.00M	-64.00M	-1.10B	-79.00M
Financing Cash Flow	-260.00M	-625.00M	-1.37B	-1.31B	-1.09B	-821.00M

Restaurant Brands International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QSR, the sentiment is Positive. The current price of 67.01 is below the 20-day moving average (MA) of 67.49, above the 50-day MA of 64.91, and above the 200-day MA of 65.00, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 24.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QSR.

Restaurant Brands International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PZA	―	C$519.32M	16.57	10.14%	5.96%	-0.26%	-2.48%
QSP.UN	―	C$43.15B	25.16	24.42%	3.68%	25.29%	-22.90%
QSR	―	$30.48B	25.05	27.00%	3.64%	21.80%	-34.35%
MTY	―	$775.46M	24.29	3.64%	3.66%	1.38%	-64.10%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ODD	―	C$8.37M	-3.71	―	―	-2.40%	9.13%

Restaurant Brands International Corporate Events

Restaurant Brands International Reports Strong Q3 2025 Results

Restaurant Brands International Inc. (RBI) is a leading global quick-service restaurant company, operating prominent brands such as Tim Hortons, Burger King, Popeyes, and Firehouse Subs across over 120 countries. The company is known for its franchise model and commitment to sustainable practices.

Restaurant Brands International Reports Strong Q3 2025 Results

Restaurant Brands International Inc. reported a strong third quarter for 2025, with a 6.9% year-over-year growth in consolidated system-wide sales, driven by significant contributions from Tim Hortons and international operations. The company remains on track for over 8% organic adjusted operating income growth for the year, highlighting disciplined execution and strong franchisee alignment as key factors in outperforming industry peers.

The most recent analyst rating on (QSR) stock is a Buy with a $78.00 price target. To see the full list of analyst forecasts on Restaurant Brands International stock, see the QSR Stock Forecast page.

Restaurant Brands International Reports Strong Q2 2025 Results

Restaurant Brands International Inc. (RBI) is a leading global quick-service restaurant company, owning iconic brands such as Tim Hortons, Burger King, Popeyes, and Firehouse Subs, with over 32,000 locations worldwide. In its second-quarter 2025 earnings report, RBI announced a 5.3% year-over-year growth in consolidated system-wide sales, driven by strong performance in international markets and its major brands. The company remains on track to achieve its target of over 8% organic adjusted operating income growth for the year.

Restaurant Brands International’s Earnings Call Highlights Growth and Challenges

Restaurant Brands International’s recent earnings call presented a balanced outlook, highlighting both achievements and challenges. The company reported robust growth in system-wide sales and adjusted operating income, primarily driven by strong performances in the Tim Hortons and International segments. However, the call also acknowledged challenges such as modest growth in Burger King U.S., a decline in Popeyes U.S. comparable sales, and ongoing commodity inflation pressures. Despite these hurdles, the company’s strategic initiatives and franchisee engagement suggest potential for future growth.

Restaurant Brands International Reports Strong Q2 2025 Results with Strategic Growth

Restaurant Brands International Inc. reported a 5.3% year-over-year increase in consolidated system-wide sales for the second quarter of 2025, with notable growth in international markets. The company remains on track for over 8% organic adjusted operating income growth in 2025, driven by strong sales trends and strategic initiatives in its largest businesses, Tim Hortons and Burger King International. The acquisitions of Carrols Restaurant Group and Popeyes China have led to the establishment of a new operating segment, Restaurant Holdings, which is expected to enhance the company’s long-term franchise dynamics.

The most recent analyst rating on (TSE:QSR) stock is a Buy with a C$88.00 price target. To see the full list of analyst forecasts on Restaurant Brands International stock, see the TSE:QSR Stock Forecast page.