Logo image of QSR.CA

RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis

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

89.78  +1.14 (+1.29%)

Fundamental Rating

5

Overall QSR gets a fundamental rating of 5 out of 10. We evaluated QSR against 19 industry peers in the Hotels, Restaurants & Leisure industry. QSR scores excellent on profitability, but there are concerns on its financial health. QSR has a correct valuation and a medium growth rate.


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.
Each year in the past 5 years QSR has 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 500M 1B 1.5B 2B

1.2 Ratios

QSR has a Return On Assets of 5.07%. This is in the better half of the industry: QSR outperforms 64.71% of its industry peers.
With an excellent Return On Equity value of 39.25%, QSR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.07%, QSR is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QSR is in line with the industry average of 7.56%.
The 3 year average ROIC (6.87%) for QSR is below the current ROIC(7.07%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.07%
ROE 39.25%
ROIC 7.07%
ROA(3y)4.37%
ROA(5y)3.63%
ROE(3y)39.77%
ROE(5y)33.51%
ROIC(3y)6.87%
ROIC(5y)6.61%
QSR.CA Yearly ROA, ROE, ROICQSR.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

1.3 Margins

The Profit Margin of QSR (16.02%) is better than 76.47% of its industry peers.
QSR's Profit Margin has improved in the last couple of years.
The Operating Margin of QSR (28.30%) is better than 76.47% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
QSR's Gross Margin of 60.86% is fine compared to the rest of the industry. QSR outperforms 76.47% of its industry peers.
QSR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.3%
PM (TTM) 16.02%
GM 60.86%
OM growth 3Y-1.85%
OM growth 5Y-3.6%
PM growth 3Y20.1%
PM growth 5Y8.21%
GM growth 3Y-1.08%
GM growth 5Y-0.19%
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 20 40 60

3

2. Health

2.1 Basic Checks

QSR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
QSR has more shares outstanding than it did 1 year ago.
QSR has more shares outstanding than it did 5 years ago.
QSR has a better debt/assets ratio than last year.
QSR.CA Yearly Shares OutstandingQSR.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 5B 10B 15B 20B

2.2 Solvency

QSR has an Altman-Z score of 1.27. This is a bad value and indicates that QSR is not financially healthy and even has some risk of bankruptcy.
QSR's Altman-Z score of 1.27 is in line compared to the rest of the industry. QSR outperforms 58.82% of its industry peers.
QSR has a debt to FCF ratio of 11.17. This is a negative value and a sign of low solvency as QSR would need 11.17 years to pay back of all of its debts.
QSR's Debt to FCF ratio of 11.17 is in line compared to the rest of the industry. QSR outperforms 41.18% of its industry peers.
A Debt/Equity ratio of 4.29 is on the high side and indicates that QSR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.29, QSR is doing worse than 70.59% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 4.29
Debt/FCF 11.17
Altman-Z 1.27
ROIC/WACC1.01
WACC7%
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 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.02 indicates that QSR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.02, QSR is doing good in the industry, outperforming 64.71% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that QSR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, QSR is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 0.94
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 500M 1B 1.5B 2B

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.55% 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 4.32% on average per year.
The Revenue has grown by 15.08% in the past year. This is quite good.
The Revenue has been growing slightly by 5.56% on average over the past years.
EPS 1Y (TTM)1.55%
EPS 3Y17.18%
EPS 5Y4.32%
EPS Q2Q%3.33%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y12.23%
Revenue growth 5Y5.56%
Sales Q2Q%24.71%

3.2 Future

Based on estimates for the next years, QSR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.82% on average per year.
The Revenue is expected to grow by 7.92% on average over the next years.
EPS Next Y4.49%
EPS Next 2Y8.64%
EPS Next 3Y8.5%
EPS Next 5Y11.82%
Revenue Next Year19.89%
Revenue Next 2Y15.17%
Revenue Next 3Y11.54%
Revenue Next 5Y7.92%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
QSR.CA Yearly Revenue VS EstimatesQSR.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 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 2031 2 4 6

4

4. Valuation

4.1 Price/Earnings Ratio

QSR is valuated rather expensively with a Price/Earnings ratio of 19.22.
Compared to the rest of the industry, the Price/Earnings ratio of QSR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of QSR to the average of the S&P500 Index (28.35), we can say QSR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.40, the valuation of QSR can be described as correct.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 95.00. QSR is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 19.22
Fwd PE 16.4
QSR.CA Price Earnings VS Forward Price EarningsQSR.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, QSR is valued a bit cheaper than 64.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QSR is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 16.24
EV/EBITDA 13.38
QSR.CA Per share dataQSR.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40 -60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of QSR may justify a higher PE ratio.
PEG (NY)4.28
PEG (5Y)4.45
EPS Next 2Y8.64%
EPS Next 3Y8.5%

5

5. Dividend

5.1 Amount

QSR has a Yearly Dividend Yield of 3.69%.
Compared to an average industry Dividend Yield of 4.42, QSR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, QSR pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.69%

5.2 History

The dividend of QSR decreases each year by -2.18%.
QSR has been paying a dividend for at least 10 years, so it has a reliable track record.
As QSR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-2.18%
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 0.5 1 1.5 2 2.5

5.3 Sustainability

80.00% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP80%
EPS Next 2Y8.64%
EPS Next 3Y8.5%
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 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 (2/5/2025, 7:00:00 PM)

89.78

+1.14 (+1.29%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners88.77%
Inst Owner ChangeN/A
Ins Owners1.11%
Ins Owner ChangeN/A
Market Cap29.06B
Analysts78.1
Price Target118.34 (31.81%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.69%
Yearly Dividend2.63
Dividend Growth(5Y)-2.18%
DP80%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.29%
Min EPS beat(2)-3.26%
Max EPS beat(2)-1.32%
EPS beat(4)2
Avg EPS beat(4)-0.7%
Min EPS beat(4)-3.26%
Max EPS beat(4)1.26%
EPS beat(8)5
Avg EPS beat(8)3%
EPS beat(12)9
Avg EPS beat(12)5.06%
EPS beat(16)12
Avg EPS beat(16)4.74%
Revenue beat(2)1
Avg Revenue beat(2)0.04%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)1.76%
Revenue beat(4)2
Avg Revenue beat(4)0.23%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)1.76%
Revenue beat(8)5
Avg Revenue beat(8)-0.07%
Revenue beat(12)9
Avg Revenue beat(12)0.79%
Revenue beat(16)10
Avg Revenue beat(16)0.66%
PT rev (1m)-1.12%
PT rev (3m)-0.2%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-7.22%
EPS NY rev (1m)0.66%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)7.48%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.35%
Valuation
Industry RankSector Rank
PE 19.22
Fwd PE 16.4
P/S 2.57
P/FCF 16.24
P/OCF 14.29
P/B 6.29
P/tB N/A
EV/EBITDA 13.38
EPS(TTM)4.67
EY5.2%
EPS(NY)5.47
Fwd EY6.1%
FCF(TTM)5.53
FCFY6.16%
OCF(TTM)6.28
OCFY7%
SpS34.97
BVpS14.27
TBVpS-63.05
PEG (NY)4.28
PEG (5Y)4.45
Profitability
Industry RankSector Rank
ROA 5.07%
ROE 39.25%
ROCE 9.81%
ROIC 7.07%
ROICexc 7.45%
ROICexgc 38.9%
OM 28.3%
PM (TTM) 16.02%
GM 60.86%
FCFM 15.81%
ROA(3y)4.37%
ROA(5y)3.63%
ROE(3y)39.77%
ROE(5y)33.51%
ROIC(3y)6.87%
ROIC(5y)6.61%
ROICexc(3y)7.26%
ROICexc(5y)7.04%
ROICexgc(3y)49.12%
ROICexgc(5y)46.68%
ROCE(3y)9.54%
ROCE(5y)9.18%
ROICexcg growth 3Y9.58%
ROICexcg growth 5Y-8.74%
ROICexc growth 3Y9.24%
ROICexc growth 5Y-0.66%
OM growth 3Y-1.85%
OM growth 5Y-3.6%
PM growth 3Y20.1%
PM growth 5Y8.21%
GM growth 3Y-1.08%
GM growth 5Y-0.19%
F-Score7
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 4.29
Debt/FCF 11.17
Debt/EBITDA 5.6
Cap/Depr 72.46%
Cap/Sales 2.16%
Interest Coverage 2.85
Cash Conversion 57.46%
Profit Quality 98.74%
Current Ratio 1.02
Quick Ratio 0.94
Altman-Z 1.27
F-Score7
WACC7%
ROIC/WACC1.01
Cap/Depr(3y)56.07%
Cap/Depr(5y)52.72%
Cap/Sales(3y)1.7%
Cap/Sales(5y)1.71%
Profit Quality(3y)144.1%
Profit Quality(5y)163.53%
High Growth Momentum
Growth
EPS 1Y (TTM)1.55%
EPS 3Y17.18%
EPS 5Y4.32%
EPS Q2Q%3.33%
EPS Next Y4.49%
EPS Next 2Y8.64%
EPS Next 3Y8.5%
EPS Next 5Y11.82%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y12.23%
Revenue growth 5Y5.56%
Sales Q2Q%24.71%
Revenue Next Year19.89%
Revenue Next 2Y15.17%
Revenue Next 3Y11.54%
Revenue Next 5Y7.92%
EBIT growth 1Y6.91%
EBIT growth 3Y10.15%
EBIT growth 5Y1.77%
EBIT Next Year24.65%
EBIT Next 3Y13.33%
EBIT Next 5Y9.81%
FCF growth 1Y-13.52%
FCF growth 3Y14.38%
FCF growth 5Y2.2%
OCF growth 1Y-7.35%
OCF growth 3Y12.83%
OCF growth 5Y2.58%