Restaurant Brands International (QSR) AI Stock Analysis

• Market Cap: C$44.88B
• Dividend Yield: 3.59%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 50.4
• Beta (1Y): 0.42
• Revenue Growth: 25.29%
• EPS Growth: -32.66%
• Country: CA
• Employees: 37,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 346,504,180
• 10 Day Avg. Volume: 1,455,192
• 30 Day Avg. Volume: 1,136,131
• PEG Ratio: -2.01
• Price to Book (P/B): 6.27
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 15.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$107.96
• Price Target Upside: 10.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 5.04
• Revenue Forecast (FY): C$12.80B

• Rating: 67 Neutral
• Price Target: C$95.00 ▼(-2.48% Downside)
• Action: Reiterated Date: 09/21/25
• Date: Action: Reiterated 09/21/25

Restaurant Brands International's overall score reflects steady financial performance and strong earnings call highlights, offset by technical analysis indicating a bearish trend and valuation concerns. The company's focus on growth in key segments and strategic initiatives provides a positive outlook, but challenges with cost inflation and leverage need addressing.

Positive Factors

Strong free cash flow generation

Consistent, high free cash flow provides durable capacity to fund dividends, service heavy debt, and invest in brand initiatives without relying on equity raises. This cash conversion strength underpins shareholder returns and preserves operating flexibility through cycles.

Franchise-heavy, scalable business model

A franchise-first model delivers recurring royalty and rent economics with low corporate capex and operating leverage. That structure sustains margin resilience, scales internationally with limited capital, and reduces operating volatility versus company‑owned chains.

International expansion and China JV support scalable growth

The China JV brings local capital and expertise, shifting development cost and execution risk to a majority partner while preserving upside via royalties and minority ownership. This materially increases long‑term unit growth runway and lowers RBI's capital intensity in a large market.

Negative Factors

High leverage and limited balance sheet flexibility

Elevated debt relative to equity heightens refinancing and interest‑rate sensitivity, constraining strategic optionality. High leverage limits capacity for opportunistic M&A, larger share repurchases, or cushioning during sales or margin shocks over the medium term.

Commodity cost pressure (beef) compressing margins

Sustained commodity inflation directly reduces franchisee four‑wall profitability and can cap royalty growth if pricing or mix can't fully offset costs. Persistent input inflation therefore risks systemwide AOI flow‑through and slows modernization or unit growth funded by franchisees.

Brand execution weakness and subdued unit growth

Weakness at a major brand and a trough in net restaurant growth signal uneven execution across the portfolio. Prolonged brand underperformance or slower unit expansion can reduce royalty momentum, delay margin recovery from remodels, and require incremental support or leadership changes.

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 shows steady revenue growth and operational efficiency but faces challenges with declining profit margins and high leverage. Improvement in cash flow generation is a positive sign for liquidity, but cost management and debt reduction remain critical.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.43B	8.41B	7.02B	6.50B	5.74B
Gross Profit	3.88B	3.02B	2.80B	2.60B	2.37B
EBITDA	2.42B	2.66B	2.24B	2.07B	2.04B
Net Income	776.00M	1.02B	1.19B	1.01B	838.00M
Balance Sheet
Total Assets	25.61B	24.63B	23.39B	22.75B	23.25B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.33B	1.14B	1.18B	1.09B
Total Debt	17.58B	15.96B	14.52B	14.49B	14.62B
Total Liabilities	20.46B	19.79B	18.66B	18.48B	19.39B
Stockholders Equity	3.63B	3.11B	2.87B	2.50B	2.24B
Cash Flow
Free Cash Flow	1.45B	1.30B	1.20B	1.39B	1.62B
Operating Cash Flow	1.71B	1.50B	1.32B	1.49B	1.73B
Investing Cash Flow	-399.00M	-660.00M	11.00M	-64.00M	-1.10B
Financing Cash Flow	-1.44B	-625.00M	-1.37B	-1.31B	-1.09B

Restaurant Brands International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.42
• 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 TSE:QSR, the sentiment is Positive. The current price of 97.42 is above the 20-day moving average (MA) of 94.99, above the 50-day MA of 94.40, and above the 200-day MA of 92.62, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 73.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:QSR.

Restaurant Brands International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCD	75 Outperform	$235.67B	25.46	―	2.31%	1.26%	2.87%
YUMC	75 Outperform	$18.49B	18.45	16.73%	1.98%	3.29%	6.72%
YUM	74 Outperform	$44.36B	26.98	―	1.84%	11.60%	-4.33%
QSR	67 Neutral	C$44.88B	50.42	26.75%	3.59%	25.29%	-32.66%
CMG	67 Neutral	$47.81B	32.22	47.36%	―	7.31%	5.26%
DPZ	67 Neutral	$13.73B	23.81	―	1.63%	3.92%	4.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Restaurant Brands International Corporate Events

Restaurant Brands International Announces Pricing of Secondary Offering

Restaurant Brands International Inc. announced the pricing of a secondary offering of up to 17,626,570 common shares initiated by HL1 17 LP, an affiliate of 3G Capital. The offering involves a forward sale agreement with BofA Securities, which will manage the sale of the shares. RBI will not sell any shares or receive proceeds from this offering, and the total number of shares and exchangeable units will remain unchanged. The offering is expected to close on November 17, 2025, subject to customary conditions, with implications for the company’s market operations and stakeholders.

The most recent analyst rating on (QSR) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Restaurant Brands International stock, see the QSR Stock Forecast page.

Restaurant Brands International Announces Exchange and Secondary Offering

Restaurant Brands International Inc. announced the receipt of an exchange notice from HL1 17 LP, an affiliate of 3G Capital, for the exchange of 17,626,570 Class B exchangeable units into common shares. This transaction will not alter the total number of exchangeable units and common shares. Concurrently, a secondary offering of the same number of common shares has commenced, with BofA Securities managing the offering. The selling shareholder will settle a forward sale agreement and receive cash proceeds from the public offering, while RBI will not sell any shares or receive proceeds from this transaction.

The most recent analyst rating on (QSR) stock is a Buy with a $81.00 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 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.