Restaurant Brands International (QSR) AI Stock Analysis

• Market Cap: C$41.85B
• Dividend Yield: 3.7%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.39
• 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: 327,801,850
• 10 Day Avg. Volume: 632,503
• 30 Day Avg. Volume: 1,106,889
• PEG Ratio: -1.27
• Price to Book (P/B): 6.69
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 15.97
• 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$106.12
• Price Target Upside: 15.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 67 Neutral
• Price Target: C$95.00 ▲(3.15% 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 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 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

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

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

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.

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	3.42B	3.02B	2.80B	2.60B	2.37B	1.97B
EBITDA	2.50B	2.66B	2.24B	2.07B	2.04B	1.50B
Net Income	859.00M	1.02B	1.19B	1.01B	838.00M	486.00M
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	14.49B	14.62B	14.12B
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	1.36B	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	-306.69M	-660.00M	11.00M	-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: Neutral
• Last Price: 92.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 92.1 is below the 20-day moving average (MA) of 94.29, above the 50-day MA of 90.04, and above the 200-day MA of 90.61, indicating a neutral trend. The MACD of 1.09 indicates Positive momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 9.86 is Positive, 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	―	C$520.65M	16.62	10.14%	5.82%	-0.26%	-2.48%
QSP.UN	―	C$42.18B	25.17	24.42%	3.76%	25.29%	-22.90%
QSR	―	C$41.85B	25.37	27.00%	3.70%	25.29%	-32.66%
MTY	―	$792.37M	24.29	3.64%	3.66%	1.38%	-64.10%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ODD	―	C$8.37M	-3.71	―	―	-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.