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Restaurant Brands International (TSE:QSR)
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Restaurant Brands International (QSR) AI Stock Analysis

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TSE:QSR

Restaurant Brands International

(NYSE:QSR)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
C$95.00
▲(1.13% Upside)
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 sales growth across key segments like Tim Hortons and International indicates strong market demand and effective strategies, supporting long-term revenue expansion.
International Expansion
The expansion into Mexico with over 300 new Popeyes restaurants enhances global footprint, diversifies revenue streams, and strengthens competitive position in the fast-food industry.
Operational Efficiency
High EBIT margin demonstrates effective cost management and operational efficiency, which can sustain profitability and provide a buffer against economic fluctuations.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk during economic downturns, potentially impacting long-term financial stability and growth opportunities.
Profit Margin Pressure
Declining profit margins indicate pressure on profitability, which could affect the company's ability to reinvest in growth and maintain competitive pricing strategies.
Commodity Cost Inflation
Rising commodity costs can erode margins and necessitate price increases, potentially affecting demand and profitability if not managed effectively over time.

Restaurant Brands International (QSR) vs. iShares MSCI Canada ETF (EWC)

Restaurant Brands International Business Overview & Revenue Model

Company DescriptionRestaurant 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 MoneyRestaurant 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in key areas such as Tim Hortons and International segments, with solid sales growth and successful marketing initiatives. However, challenges like increased bad debt expenses and commodity cost inflation presented hurdles. The turnaround in Burger King China and progress in system-wide sales show potential for continued growth.
Q2-2025 Updates
Positive Updates
Tim Hortons' Strong Performance
Tim Hortons posted its 17th consecutive quarter of positive comparable sales in Canada with a 3.6% increase. The growth was supported by a well-executed marketing calendar and operational improvements.
International Segment Growth
The International segment delivered nearly 10% system-wide sales growth, with particularly strong performance in markets like the UK, Spain, Australia, and Germany.
System-Wide Sales Growth
Restaurant Brands International reported a system-wide sales growth of 5.3% in Q2, driven by net restaurant growth of 2.9% and comp sales acceleration to 2.4% year-over-year.
Record Fundraising Campaigns
Tim Hortons raised a record-breaking $23 million during Smile Cookie Week and $13 million for the Tim Hortons Foundation camps during Camp Day.
Positive Turnaround in Burger King China
Burger King China saw comparable sales turn positive in Q2, with improved unit economics, marking a significant turnaround.
Negative Updates
Bad Debt Expenses
The company recorded $9 million in bad debt expenses in Q2, a significant increase from a net recovery of $6 million in the prior year.
Popeyes U.S. Comparable Sales Decline
Popeyes in the U.S. experienced a 0.9% decline in comparable sales despite system-wide sales growth of 1.9%.
Commodity Cost Inflation
The company faced significant cost inflation, particularly in beef prices which were up high teens year-over-year, impacting the cost structure.
Company Guidance
During the Restaurant Brands International (RBI) Second Quarter 2025 Earnings Conference Call, the company provided several key performance indicators and forward-looking guidance. For Q2 2025, RBI reported a year-over-year comparable sales growth of 2.4%, with net restaurant growth at 2.9%, leading to system-wide sales growth of 5.3%. This contributed to an organic adjusted operating income (AOI) growth of 5.7%. Tim Hortons and the International business segments, which together account for nearly 70% of RBI’s adjusted operating income, were highlighted as strong performers. Tim Hortons Canada achieved its 17th consecutive quarter of positive comparable sales, accelerating to 3.6%, while the International segment saw nearly 10% system-wide sales growth with a 5.4% increase in net restaurants and 4.2% in comparable sales. Burger King U.S. reported a modest 1.5% increase in comparable sales, outperforming the burger QSR segment. Despite a dynamic consumer environment, RBI is confident in achieving at least 8% organic AOI growth in 2025, supported by disciplined cost management and strategic investments. The company also noted progress in refranchising efforts and the repositioning of Burger King China, aiming to simplify operations and enhance long-term growth.

Restaurant Brands International Financial Statement Overview

Summary
Restaurant Brands International demonstrates solid revenue growth and operational efficiency, but faces challenges with declining net profit margins and high leverage. The company shows positive cash flow trends, which is a strength, but the high debt levels could pose risks if not managed carefully. Overall, the financial health is stable with room for improvement in profitability and leverage management.
Income Statement
75
Positive
Restaurant Brands International shows a steady revenue growth rate of 3.76% in the TTM, indicating positive momentum. However, the net profit margin has decreased from 12.15% in 2024 to 9.43% in the TTM, suggesting some pressure on profitability. The gross profit margin remains stable at around 37.6%, and the EBIT margin is strong at 24.07%, reflecting efficient operational management.
Balance Sheet
65
Positive
The company has a high debt-to-equity ratio of 4.82 in the TTM, which poses a risk due to significant leverage. However, the return on equity is robust at 26.89%, indicating effective use of equity to generate profits. The equity ratio is relatively low, suggesting a heavy reliance on debt financing.
Cash Flow
70
Positive
Free cash flow growth is positive at 9.72% in the TTM, showing improvement in cash generation. The operating cash flow to net income ratio is 0.58, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is strong at 0.85, suggesting good cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.11B8.41B7.02B6.50B5.74B4.97B
Gross Profit3.42B3.02B2.80B2.60B2.37B1.97B
EBITDA2.50B2.66B2.24B2.07B2.04B1.50B
Net Income859.00M1.02B1.19B1.01B838.00M486.00M
Balance Sheet
Total Assets25.69B24.63B23.39B22.75B23.25B22.78B
Cash, Cash Equivalents and Short-Term Investments1.03B1.33B1.14B1.18B1.09B1.56B
Total Debt16.00B15.96B14.52B14.49B14.62B14.12B
Total Liabilities20.60B19.79B18.66B18.48B19.39B19.06B
Stockholders Equity3.32B3.11B2.87B2.50B2.24B2.17B
Cash Flow
Free Cash Flow1.36B1.30B1.20B1.39B1.62B804.00M
Operating Cash Flow1.60B1.50B1.32B1.49B1.73B921.00M
Investing Cash Flow-306.69M-660.00M11.00M-64.00M-1.10B-79.00M
Financing Cash Flow-1.08B-625.00M-1.37B-1.31B-1.09B-821.00M

Restaurant Brands International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price93.94
Price Trends
50DMA
89.08
Positive
100DMA
90.96
Positive
200DMA
90.29
Positive
Market Momentum
MACD
1.83
Negative
RSI
62.55
Neutral
STOCH
85.86
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 93.94 is above the 20-day moving average (MA) of 89.62, above the 50-day MA of 89.08, and above the 200-day MA of 90.29, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 62.55 is Neutral, neither overbought nor oversold. The STOCH value of 85.86 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 Risk Analysis

Restaurant Brands International disclosed 31 risk factors in its most recent earnings report. Restaurant Brands International reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Restaurant Brands International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$516.98M16.4510.14%5.96%-0.26%-2.48%
73
Outperform
C$43.04B25.6724.42%3.69%25.29%-22.90%
67
Neutral
C$42.65B25.5927.00%3.67%25.29%-32.66%
67
Neutral
$868.43M22.774.59%3.34%0.55%-59.39%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
44
Neutral
C$11.32M-2.40%9.13%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:QSR
Restaurant Brands International
93.94
0.98
1.06%
TSE:PZA
Pizza Pizza Royalty
15.60
3.06
24.38%
TSE:ODD
Odd Burger Corporation
0.11
-0.06
-35.29%
TSE:QSP.UN
Restaurant BrndLP
94.93
1.84
1.98%
TSE:MTY
MTY Food Group
38.07
-7.77
-16.95%

Restaurant Brands International Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Restaurant Brands International Reports Strong Q2 2025 Results with Strategic Growth
Positive
Aug 7, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 21, 2025