Restaurant Brands International (QSR) AI Stock Analysis

• Market Cap: $44.05B
• Dividend Yield: 3.74%
• Average Volume (3M): 765.28K
• Price to Earnings (P/E): 24.8
• 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): 1.44
• Shares Outstanding: 327,812,070
• 10 Day Avg. Volume: 804,101
• 30 Day Avg. Volume: 765,281
• 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: 1.04
• Enterprise Value/Revenue: 4.94
• Enterprise Value/Gross Profit: 12.00
• Enterprise Value/Ebitda: 18.97
• 1Y Price Target: $107.64
• Price Target Upside: 8.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$95.00 ▼(-3.85% Downside)

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

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. (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 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: 98.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 98.8 is above the 20-day moving average (MA) of 94.49, above the 50-day MA of 91.67, and above the 200-day MA of 91.11, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 91.03 is Negative, 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
PZA	77 Outperform	C$483.63M	15.43	10.19%	6.44%	1.35%	-1.11%
QSP.UN	73 Outperform	C$44.02B	24.67	25.66%	3.61%	19.92%	-18.34%
QSR	67 Neutral	$44.05B	24.77	28.08%	3.74%	25.29%	-32.66%
MTY	63 Neutral	$779.58M	23.89	3.64%	3.87%	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 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.