Restaurant Brands International (QSR) AI Stock Analysis

• Market Cap: $30.85B
• Dividend Yield: 3.64%
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.30
• Revenue Growth: 16.82%
• EPS Growth: -29.91%
• Country: US
• Employees: 37,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.03
• Shares Outstanding: 327,812,070
• 10 Day Avg. Volume: 3,017,107
• 30 Day Avg. Volume: 2,542,396
• 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: 1.48
• Enterprise Value/Revenue: 4.94
• Enterprise Value/Gross Profit: 12.00
• Enterprise Value/Ebitda: 18.97
• 1Y Price Target: $76.71
• Price Target Upside: 8.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 3.68
• Revenue Forecast (FY): $9.36B

• Rating: 68 Neutral
• Price Target: $72.00 ▲(2.11% Upside)

Restaurant Brands International's strong earnings call performance and strategic growth initiatives are the most significant factors driving its stock score. While financial performance shows operational efficiency, challenges in profitability and cash flow management are concerns. The technical analysis indicates a neutral trend, and the valuation is supported by a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth across key segments indicates strong market demand and effective strategic initiatives, supporting long-term expansion.

International Business Expansion

Strong international growth highlights successful global strategy and diversification, reducing reliance on domestic markets and enhancing resilience.

Cash Flow Generation

Robust cash flow generation supports financial stability and shareholder returns, enabling reinvestment in growth and strategic initiatives.

Negative Factors

Profitability Challenges

Declining profit margins indicate cost pressures, which may impact long-term profitability if not managed effectively, affecting overall financial health.

Popeyes U.S. Underperformance

Underperformance in a key brand like Popeyes can hinder growth potential and market competitiveness, requiring strategic adjustments to regain momentum.

Elevated Input Costs

Rising input costs, such as beef, can erode margins and profitability, necessitating effective cost management strategies to sustain long-term financial performance.

Restaurant Brands International Business Overview & Revenue Model

Company Description

Restaurant Brands International Inc. operates as quick service restaurant company in Canada and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and others. It is also involved in owning and franchising BK, a fast food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, french fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS restaurants quick service restaurants that offer subs, soft drinks, and local specialties. As of February 15, 2022, the company had approximately 29,000 restaurants in 100 countries under the Tim Hortons, Burger King, Popeyes, And Firehouse Subs brands. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Toronto, Canada.

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 strong revenue growth and operational efficiency, with significant improvements in leverage. However, challenges in maintaining profitability are evident due to declining profit margins and return on equity. Improved free cash flow growth is a positive indicator, but cash flow management requires attention.

Income Statement

Restaurant Brands International has shown consistent revenue growth over the years, with a TTM revenue growth rate of 1.74%. However, the gross profit margin has decreased significantly in the TTM period to 8.03% from 35.97% in the previous year, indicating increased cost pressures. The net profit margin also declined to 9.95% in the TTM period from 12.15% in the previous year, which suggests challenges in maintaining profitability. Despite these challenges, the company maintains a strong EBIT margin of 17.42% and an EBITDA margin of 22.86% in the TTM period, showcasing operational efficiency.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.58 in the TTM period from 5.13 in the previous year, indicating a significant reduction in leverage. However, the return on equity has decreased to 28.54% in the TTM period from 32.83% in the previous year, reflecting a decline in profitability relative to shareholder equity. The equity ratio remains stable, suggesting a balanced approach to asset financing.

Cash Flow

The free cash flow growth rate has improved significantly to 2.75% in the TTM period, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.58, and the free cash flow to net income ratio is 0.85, demonstrating adequate cash flow coverage. However, the operating cash flow coverage ratio has slightly decreased compared to previous years, which could indicate potential cash flow management challenges.

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	3.81B	3.02B	2.80B	2.60B	2.37B	1.97B
EBITDA	2.41B	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	15.84B	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	1.36B	1.30B	1.20B	1.39B	1.62B	804.00M
Operating Cash Flow	1.60B	1.50B	1.32B	1.49B	1.73B	921.00M
Investing Cash Flow	-260.24M	-660.00M	11.00M	-64.00M	-1.10B	-79.00M
Financing Cash Flow	-1.23B	-625.00M	-1.37B	-1.31B	-1.09B	-821.00M

Restaurant Brands International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 70.51 is above the 20-day moving average (MA) of 67.79, above the 50-day MA of 66.79, and above the 200-day MA of 65.64, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 45.69 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	77 Outperform	C$494.63M	15.78	10.19%	6.27%	1.35%	-1.11%
QSP.UN	73 Outperform	C$42.74B	23.95	25.66%	3.71%	19.92%	-18.34%
QSR	68 Neutral	$30.85B	24.18	28.08%	3.64%	16.82%	-29.91%
MTY	68 Neutral	$835.08M	25.60	3.64%	3.61%	1.38%	-64.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ODD	41 Neutral	C$8.86M	-3.93	―	―	-2.40%	9.13%

Restaurant Brands International Corporate Events

Restaurant Brands International Q3 Earnings Call Highlights

Restaurant Brands International (RBI) recently held its earnings call for the third quarter, revealing a generally positive sentiment despite some challenges. The company reported strong growth across various segments, notably in Tim Hortons Canada and its international operations. However, issues such as Popeyes U.S. underperformance and elevated beef costs affecting Burger King U.S. were also discussed. Despite these hurdles, RBI remains optimistic about its growth trajectory.

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.