Restaurant Brands International (QSR) AI Stock Analysis

• Market Cap: $40.01B
• Dividend Yield: 3.84%
• Average Volume (3M): 678.93K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.33
• Revenue Growth: 25.29%
• EPS Growth: -32.66%
• Country: CA
• Employees: 37,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.29
• Shares Outstanding: 327,801,850
• 10 Day Avg. Volume: 626,381
• 30 Day Avg. Volume: 678,928
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 7.04
• Enterprise Value/Gross Profit: 20.95
• Enterprise Value/Ebitda: 26.29
• 1Y Price Target: $105.60
• Price Target Upside: 20.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 64 Neutral
• Price Target: C$95.00 ▲(8.23% Upside)

The overall stock score is driven by strong earnings call performance and steady financials, despite technical indicators showing bearish momentum. Valuation is moderate, but high leverage and declining margins pose risks. Continued focus on cost management and strategic growth initiatives are crucial for future performance.

Positive Factors

Negative Factors

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 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.

Income Statement

Restaurant Brands International has shown consistent revenue growth, with a TTM revenue growth rate of 3.76%. However, the gross profit margin has decreased over time, from 41.78% in 2021 to 24.67% in TTM, indicating rising costs or pricing pressures. The net profit margin has also declined from 22.83% in 2021 to 9.43% in TTM, reflecting reduced profitability. Despite these challenges, the company maintains a solid EBIT margin of 18.16% in TTM, showcasing operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 4.82 in TTM, which is a concern as it indicates significant leverage. This has improved slightly from 6.44 in 2021, showing some progress in managing debt. The return on equity has decreased from 59.30% in 2022 to 26.89% in TTM, suggesting reduced profitability for shareholders. The equity ratio remains low, indicating a high reliance on debt financing.

Cash Flow

The free cash flow growth rate has improved to 9.72% in TTM, indicating better cash generation. The operating cash flow to net income ratio is 0.58, showing moderate cash flow efficiency. The free cash flow to net income ratio of 0.85 in TTM suggests that the company is generating substantial cash relative to its net income, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.11B	8.41B	7.02B	6.50B	5.74B	4.97B
Gross Profit	3.06B	3.02B	2.80B	2.60B	2.40B	2.83B
EBITDA	2.44B	2.66B	2.24B	2.21B	2.13B	1.78B
Net Income	859.00M	1.02B	1.19B	1.48B	1.25B	750.00M
Balance Sheet
Total Assets	25.69B	24.63B	23.39B	22.75B	23.25B	22.78B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.33B	1.14B	1.18B	1.09B	1.56B
Total Debt	16.00B	15.96B	14.52B	14.30B	14.41B	13.90B
Total Liabilities	20.60B	19.79B	18.66B	18.48B	19.39B	19.06B
Stockholders Equity	3.32B	3.11B	2.87B	2.50B	2.24B	2.17B
Cash Flow
Free Cash Flow	1.35B	1.30B	1.20B	1.39B	1.62B	804.00M
Operating Cash Flow	1.59B	1.50B	1.32B	1.49B	1.73B	921.00M
Investing Cash Flow	-303.00M	-660.00M	11.00M	-64.00M	-1.10B	-79.00M
Financing Cash Flow	-1.07B	-625.00M	-1.37B	-1.31B	-1.09B	-821.00M

Restaurant Brands International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QSR, the sentiment is Neutral. The current price of 87.78 is above the 20-day moving average (MA) of 87.36, below the 50-day MA of 90.76, and below the 200-day MA of 91.49, indicating a neutral trend. The MACD of -1.08 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 82.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	526.99M	16.77	0.00%	5.89%	-0.26%	-2.48%
QSP.UN	73 Outperform	38.85B	23.17	25.90%	3.92%	25.29%	-22.90%
QSR	64 Neutral	$40.01B	23.97	27.00%	3.84%	25.29%	-32.66%
MTY	63 Neutral	880.99M	23.10	4.86%	3.29%	0.55%	-59.39%
ODD	45 Neutral	17.72M	-7.86	74.67%	―	-2.40%	9.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.