Restaurant Brands International (QSR) AI Stock Analysis

• Market Cap: $40.33B
• Dividend Yield: 3.76%
• Average Volume (3M): 695.45K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.42
• Revenue Growth: 25.29%
• EPS Growth: -32.66%
• Country: CA
• Employees: 37,600
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Restaurants
• EPS (TTM): 1.29
• Shares Outstanding: 327,643,300
• 10 Day Avg. Volume: 551,028
• 30 Day Avg. Volume: 695,447
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 7.31
• Enterprise Value/Gross Profit: 21.16
• Enterprise Value/Ebitda: 24.92
• 1Y Price Target: $105.71
• Price Target Upside: 17.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 68 Neutral
• Price Target: C$98.00 ▲(9.19% Upside)

The overall stock score of 68 reflects a company with strong financial performance and strategic growth initiatives, tempered by technical challenges and valuation concerns. The most significant factors are the robust financial performance and strategic growth initiatives, while technical analysis and valuation present areas of caution.

Positive Factors

Performance improvement plan

Investors expect better Burger King performance approximately three years into the Reclaim the Flame plan.

Survey insights

Proprietary survey data suggests Burger King has closed the value perception gap relative to quick service peers.

Sustainable performance

Management believes April's improved performance at Tim's is sustainable, aided by continued progress with the Back to Basics playbook, including new menu innovation and marketing campaigns.

Negative Factors

Canadian consumer headwinds

Risks include new Canadian consumer headwinds such as immigration reform and tariffs affecting Tim's successful track record.

Profitability concerns

There is a risk to the 8%+ 2025 adjusted operating income guidance following the second quarter's profitability miss relative to the model.

Value perception challenges

Proprietary survey data suggests deteriorating value perceptions for BK compared to peers, indicating potential challenges in 2025.

Restaurant Brands International Business Overview & Revenue Model

Company Description

Restaurant Brands International Inc. (QSR) is one of the world's largest quick-service restaurant holding companies, known for its diverse portfolio that includes globally recognized brands such as Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. Headquartered in Toronto, Canada, the company operates in the fast-food sector, providing a wide range of food and beverage offerings, including burgers, chicken, coffee, and baked goods. With an extensive network of franchisees and company-operated restaurants, QSR focuses on delivering high-quality products and exceptional customer experiences across various international markets.

How the Company Makes Money

Restaurant Brands International generates revenue primarily through a franchise model, which allows the company to collect initial franchise fees and ongoing royalties based on the sales of franchisee-operated restaurants. This revenue stream is complemented by sales from company-operated locations, where the company retains all sales revenue. Additional income is derived from supply chain management, where the company provides food and other supplies to its franchisees, gaining further margins. Key partnerships with suppliers and technology firms enhance operational efficiency and marketing efforts, while global expansion into emerging markets contributes to revenue growth. The company also invests in digital initiatives to drive sales and improve customer engagement, leveraging technology to enhance the consumer experience and optimize operations.

Restaurant Brands International Financial Statement Overview

Summary

Restaurant Brands International demonstrates strong revenue growth and operational efficiency, as reflected in its income statement. Despite high leverage, the firm maintains a solid return on equity and effective cash conversion, but profitability pressures and a high debt load pose potential risks.

Income Statement

The income statement shows strong revenue growth with a 25.0% increase from 2023 to TTM, and a solid gross profit margin of 34.5% in TTM. There is a notable net profit margin of 10.8% despite a decrease in net income. The EBIT and EBITDA margins at 26.3% and 29.3% respectively highlight operational efficiency. However, the decline in net income from previous periods indicates some profitability pressure.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 5.11 in TTM, indicating significant leverage which could pose risks. The return on equity remains strong at 30.5% in TTM, showing effective use of equity, and the equity ratio of 12.5% suggests a relatively low equity buffer against liabilities.

Cash Flow

Cash flow performance is robust with a free cash flow to net income ratio of 1.30 in TTM, indicating strong cash conversion. Operating cash flow to net income ratio stands at 1.55, underscoring efficient cash generation from operations. However, the free cash flow growth rate shows a slight decline, reflecting challenges in maintaining free cash flow amid changing net income levels.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.41B	7.02B	6.50B	5.74B	4.97B
Gross Profit	3.02B	2.80B	2.60B	2.40B	2.83B
EBITDA	2.66B	2.24B	2.21B	2.13B	1.78B
Net Income	1.02B	1.19B	1.48B	1.25B	750.00M
Balance Sheet
Total Assets	24.63B	23.39B	22.75B	23.25B	22.78B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.14B	1.18B	1.09B	1.56B
Total Debt	15.96B	14.52B	14.30B	14.41B	13.90B
Total Liabilities	19.79B	18.66B	18.48B	19.39B	19.06B
Stockholders Equity	3.11B	2.87B	2.50B	2.24B	2.17B
Cash Flow
Free Cash Flow	1.30B	1.20B	1.39B	1.62B	804.00M
Operating Cash Flow	1.50B	1.32B	1.49B	1.73B	921.00M
Investing Cash Flow	-660.00M	11.00M	-64.00M	-1.10B	-79.00M
Financing Cash Flow	-625.00M	-1.37B	-1.31B	-1.09B	-821.00M

Restaurant Brands International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QSR, the sentiment is Negative. The current price of 89.75 is below the 20-day moving average (MA) of 93.76, below the 50-day MA of 92.98, and below the 200-day MA of 92.23, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 36.80 is Neutral, neither overbought nor oversold. The STOCH value of 11.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QSR.

Restaurant Brands International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PZA	77 Outperform	$541.00M	17.22	10.14%	5.76%	-0.26%	-2.48%
QSP.UN	73 Outperform	C$40.35B	24.07	24.42%	3.78%	25.29%	-22.90%
QSR	68 Neutral	$40.33B	24.19	27.00%	3.76%	25.29%	-32.66%
MTY	63 Neutral	$859.25M	22.53	4.59%	3.38%	0.55%	-59.39%
Sector *	61 Neutral	$16.99B	10.66	-7.51%	3.25%	1.53%	-15.49%
ODD	47 Neutral	C$15.75M	―		―	-2.40%	9.13%

Restaurant Brands International Corporate Events

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.