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RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis

TSX:QSR - Toronto Stock Exchange - CA76131D1033 - Common Stock - Currency: CAD

92.15  -0.47 (-0.51%)

Fundamental Rating

5

QSR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Hotels, Restaurants & Leisure industry. QSR has an excellent profitability rating, but there are concerns on its financial health. QSR has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

QSR had positive earnings in the past year.
QSR had a positive operating cash flow in the past year.
In the past 5 years QSR has always been profitable.
QSR had a positive operating cash flow in each of the past 5 years.
QSR.CA Yearly Net Income VS EBIT VS OCF VS FCFQSR.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

With a decent Return On Assets value of 3.82%, QSR is doing good in the industry, outperforming 63.16% of the companies in the same industry.
The Return On Equity of QSR (30.49%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.29%, QSR is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
QSR had an Average Return On Invested Capital over the past 3 years of 8.03%. This is in line with the industry average of 6.86%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.29%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.82%
ROE 30.49%
ROIC 8.29%
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8.03%
ROIC(5y)7.44%
QSR.CA Yearly ROA, ROE, ROICQSR.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

With a decent Profit Margin value of 10.82%, QSR is doing good in the industry, outperforming 73.68% of the companies in the same industry.
In the last couple of years the Profit Margin of QSR has remained more or less at the same level.
QSR has a better Operating Margin (26.31%) than 78.95% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 56.03%, QSR is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
QSR's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 26.31%
PM (TTM) 10.82%
GM 56.03%
OM growth 3Y-5.89%
OM growth 5Y-5.16%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.56%
GM growth 5Y-2.9%
QSR.CA Yearly Profit, Operating, Gross MarginsQSR.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QSR is still creating some value.
QSR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, QSR has more shares outstanding
Compared to 1 year ago, QSR has about the same debt to assets ratio.
QSR.CA Yearly Shares OutstandingQSR.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
QSR.CA Yearly Total Debt VS Total AssetsQSR.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

Based on the Altman-Z score of 1.36, we must say that QSR is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.36, QSR is doing good in the industry, outperforming 63.16% of the companies in the same industry.
The Debt to FCF ratio of QSR is 12.37, which is on the high side as it means it would take QSR, 12.37 years of fcf income to pay off all of its debts.
QSR has a Debt to FCF ratio (12.37) which is comparable to the rest of the industry.
A Debt/Equity ratio of 4.40 is on the high side and indicates that QSR has dependencies on debt financing.
QSR has a Debt to Equity ratio of 4.40. This is in the lower half of the industry: QSR underperforms 63.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.4
Debt/FCF 12.37
Altman-Z 1.36
ROIC/WACC1.01
WACC8.2%
QSR.CA Yearly LT Debt VS Equity VS FCFQSR.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

QSR has a Current Ratio of 0.96. This is a bad value and indicates that QSR is not financially healthy enough and could expect problems in meeting its short term obligations.
QSR has a Current ratio of 0.96. This is comparable to the rest of the industry: QSR outperforms 57.89% of its industry peers.
QSR has a Quick Ratio of 0.96. This is a bad value and indicates that QSR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of QSR (0.90) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.9
QSR.CA Yearly Current Assets VS Current LiabilitesQSR.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.72% over the past year.
Measured over the past 5 years, QSR shows a small growth in Earnings Per Share. The EPS has been growing by 4.05% on average per year.
The Revenue has grown by 22.38% in the past year. This is a very strong growth!
QSR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.45% yearly.
EPS 1Y (TTM)3.72%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%2.74%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%21.28%

3.2 Future

QSR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.85% yearly.
The Revenue is expected to grow by 2.84% on average over the next years.
EPS Next Y11.66%
EPS Next 2Y10.5%
EPS Next 3Y9.86%
EPS Next 5Y7.85%
Revenue Next Year8.78%
Revenue Next 2Y6.01%
Revenue Next 3Y4.98%
Revenue Next 5Y2.84%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
QSR.CA Yearly Revenue VS EstimatesQSR.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B 10B
QSR.CA Yearly EPS VS EstimatesQSR.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

4

4. Valuation

4.1 Price/Earnings Ratio

QSR is valuated rather expensively with a Price/Earnings ratio of 20.08.
The rest of the industry has a similar Price/Earnings ratio as QSR.
The average S&P500 Price/Earnings ratio is at 27.41. QSR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.54, QSR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 68.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. QSR is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 20.08
Fwd PE 16.54
QSR.CA Price Earnings VS Forward Price EarningsQSR.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 63.16% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as QSR.
Industry RankSector Rank
P/FCF 19.55
EV/EBITDA 13.52
QSR.CA Per share dataQSR.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
QSR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)4.95
EPS Next 2Y10.5%
EPS Next 3Y9.86%

5

5. Dividend

5.1 Amount

QSR has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
QSR's Dividend Yield is a higher than the industry average which is at 4.43.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 3.6%

5.2 History

The dividend of QSR decreases each year by -6.88%.
QSR has been paying a dividend for at least 10 years, so it has a reliable track record.
QSR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-6.88%
Div Incr Years9
Div Non Decr Years9
QSR.CA Yearly Dividends per shareQSR.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

QSR pays out 110.11% of its income as dividend. This is not a sustainable payout ratio.
DP110.11%
EPS Next 2Y10.5%
EPS Next 3Y9.86%
QSR.CA Yearly Income VS Free CF VS DividendQSR.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
QSR.CA Dividend Payout.QSR.CA Dividend Payout, showing the Payout Ratio.QSR.CA Dividend Payout.PayoutRetained Earnings

RESTAURANT BRANDS INTERN

TSX:QSR (7/11/2025, 7:00:00 PM)

92.15

-0.47 (-0.51%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-07 2025-08-07/bmo
Inst Owners90.45%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap30.19B
Analysts77.14
Price Target108.54 (17.79%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.6%
Yearly Dividend3.14
Dividend Growth(5Y)-6.88%
DP110.11%
Div Incr Years9
Div Non Decr Years9
Ex-Date06-24 2025-06-24 (0.62)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.57%
Min EPS beat(2)-5.14%
Max EPS beat(2)2.01%
EPS beat(4)1
Avg EPS beat(4)-1.93%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)5
Avg EPS beat(8)0.98%
EPS beat(12)8
Avg EPS beat(12)4.24%
EPS beat(16)12
Avg EPS beat(16)5.29%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)1.76%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)0.34%
Revenue beat(16)10
Avg Revenue beat(16)0.58%
PT rev (1m)0.1%
PT rev (3m)-5.8%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.3%
Valuation
Industry RankSector Rank
PE 20.08
Fwd PE 16.54
P/S 2.51
P/FCF 19.55
P/OCF 16.13
P/B 7.07
P/tB N/A
EV/EBITDA 13.52
EPS(TTM)4.59
EY4.98%
EPS(NY)5.57
Fwd EY6.05%
FCF(TTM)4.71
FCFY5.11%
OCF(TTM)5.71
OCFY6.2%
SpS36.7
BVpS13.03
TBVpS-58.19
PEG (NY)1.72
PEG (5Y)4.95
Profitability
Industry RankSector Rank
ROA 3.82%
ROE 30.49%
ROCE 10.38%
ROIC 8.29%
ROICexc 8.64%
ROICexgc 42.65%
OM 26.31%
PM (TTM) 10.82%
GM 56.03%
FCFM 12.84%
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8.03%
ROIC(5y)7.44%
ROICexc(3y)8.51%
ROICexc(5y)7.9%
ROICexgc(3y)52.12%
ROICexgc(5y)49.93%
ROCE(3y)10.05%
ROCE(5y)9.31%
ROICexcg growth 3Y-4.66%
ROICexcg growth 5Y-3.62%
ROICexc growth 3Y5.76%
ROICexc growth 5Y1.01%
OM growth 3Y-5.89%
OM growth 5Y-5.16%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.56%
GM growth 5Y-2.9%
F-Score5
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 4.4
Debt/FCF 12.37
Debt/EBITDA 5.29
Cap/Depr 83.57%
Cap/Sales 2.72%
Interest Coverage 3.01
Cash Conversion 52.64%
Profit Quality 118.63%
Current Ratio 0.96
Quick Ratio 0.9
Altman-Z 1.36
F-Score5
WACC8.2%
ROIC/WACC1.01
Cap/Depr(3y)63.87%
Cap/Depr(5y)61.25%
Cap/Sales(3y)1.88%
Cap/Sales(5y)1.97%
Profit Quality(3y)122.17%
Profit Quality(5y)145.05%
High Growth Momentum
Growth
EPS 1Y (TTM)3.72%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%2.74%
EPS Next Y11.66%
EPS Next 2Y10.5%
EPS Next 3Y9.86%
EPS Next 5Y7.85%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%21.28%
Revenue Next Year8.78%
Revenue Next 2Y6.01%
Revenue Next 3Y4.98%
Revenue Next 5Y2.84%
EBIT growth 1Y6.21%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.36%
EBIT Next 3Y11.29%
EBIT Next 5Y9.29%
FCF growth 1Y-9.33%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y1.11%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%