Education
About Us
Working with TipRanks
Follow Us
Restaurant Brands International (TSE:QSR)
TSX:QSR
RESEARCH TOOLSreports
Top Page
Restaurant Brands International
(TSX:QSR)
Rating:64Neutral
Price Target:
C$95.00
▲(8.26% Upside)
Restaurant Brands International (QSR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$39.98B
Dividend Yield3.84%
Average Volume (3M)654.78K
Price to Earnings (P/E)23.4
Beta (1Y)0.33
Revenue Growth25.29%
EPS Growth-32.66%
CountryCA
Employees37,600
SectorConsumer Cyclical
Sector Strength75
IndustryRestaurants
Share Statistics
EPS (TTM)1.29
Shares Outstanding327,801,850
10 Day Avg. Volume545,399
30 Day Avg. Volume654,779
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.60
Enterprise Value/Revenue7.04
Enterprise Value/Gross Profit20.95
Enterprise Value/Ebitda26.29
Forecast
1Y Price Target
$106.37Price Target Upside21.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
Restaurant Brands International Business Overview & Revenue Model
Company DescriptionRestaurant 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 MoneyRestaurant 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 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 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.75
Positive
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.60
Neutral
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.70
Positive
| 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
Neutral
87.75
Price Trends
90.97
Negative
91.69
Negative
91.57
Negative
Market Momentum
-1.37
Negative
47.30
Neutral
55.30
Neutral
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 87.75 is above the 20-day moving average (MA) of 87.63, below the 50-day MA of 90.97, and below the 200-day MA of 91.57, indicating a neutral trend. The MACD of -1.37 indicates Negative momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 55.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $39.98B | 23.40 | 27.00% | 3.84% | 25.29% | -32.66% | |
61 Neutral | $18.09B | 12.97 | -1.60% | 2.98% | 1.42% | -15.92% | |
| ― | $380.58M | 16.87 | 10.14% | 5.84% | ― | ― | |
73 Outperform | C$39.65B | 22.77 | 24.42% | 3.99% | 25.29% | -22.90% | |
45 Neutral | C$17.72M | ― | ― | -2.40% | 9.13% | ||
| ― | $636.57M | 23.59 | 4.59% | 3.26% | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:QSR
Restaurant Brands International
87.75
-2.89
-3.18%
PZRIF
Pizza Pizza Royalty
11.40
2.64
30.14%
TSE:ODD
Odd Burger Corporation
0.19
0.04
26.67%
TSE:QSP.UN
Restaurant BrndLP
87.45
-3.86
-4.23%
MTYFF
MTY Food Group
27.69
-2.39
-7.95%
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.