RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
TSX:QSR - Toronto Stock Exchange - CA76131D1033 - Common Stock - Currency: CAD
QSR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Hotels, Restaurants & Leisure industry. While QSR has a great profitability rating, there are quite some concerns on its financial health. QSR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year QSR was profitable.
QSR had a positive operating cash flow in the past year.
QSR had positive earnings in each of the past 5 years.
QSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.82%, QSR is doing good in the industry, outperforming 61.11% of the companies in the same industry.
QSR's Return On Equity of 30.49% is amongst the best of the industry. QSR outperforms 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 72.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QSR is in line with the industry average of 7.58%.
The last Return On Invested Capital (8.29%) for QSR is above the 3 year average (8.03%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of QSR (10.82%) is better than 72.22% of its industry peers.
In the last couple of years the Profit Margin of QSR has remained more or less at the same level.
With a decent Operating Margin value of 26.31%, QSR is doing good in the industry, outperforming 77.78% of the companies in the same industry.
QSR's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 56.03%, QSR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of QSR has declined.
| Industry Rank | Sector 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%
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.
Compared to 5 years ago, QSR has more shares outstanding
The debt/assets ratio for QSR has remained at the same level compared to a year ago.
2.2 Solvency
QSR has an Altman-Z score of 1.39. This is a bad value and indicates that QSR is not financially healthy and even has some risk of bankruptcy.
QSR has a Altman-Z score of 1.39. This is in the better half of the industry: QSR outperforms 61.11% of its industry peers.
QSR has a debt to FCF ratio of 12.37. This is a negative value and a sign of low solvency as QSR would need 12.37 years to pay back of all of its debts.
QSR's Debt to FCF ratio of 12.37 is in line compared to the rest of the industry. QSR outperforms 55.56% of its industry peers.
QSR has a Debt/Equity ratio of 4.40. This is a high value indicating a heavy dependency on external financing.
QSR has a Debt to Equity ratio of 4.40. This is in the lower half of the industry: QSR underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.4 | ||
| Debt/FCF | 12.37 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.06
WACC7.79%
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's Current ratio of 0.96 is fine compared to the rest of the industry. QSR outperforms 66.67% 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.
Looking at the Quick ratio, with a value of 0.90, QSR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.72% over the past year.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
The Revenue has grown by 22.38% in the past year. This is a very strong growth!
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
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
Based on estimates for the next years, QSR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.29% on average per year.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y11.85%
EPS Next 2Y10.44%
EPS Next 3Y9.93%
EPS Next 5Y9.29%
Revenue Next Year9.09%
Revenue Next 2Y6.09%
Revenue Next 3Y5.3%
Revenue Next 5Y3.5%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.08 indicates a rather expensive valuation of QSR.
QSR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.19, QSR is valued at the same level.
A Price/Forward Earnings ratio of 17.39 indicates a rather expensive valuation of QSR.
66.67% of the companies in the same industry are more expensive than QSR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, QSR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 17.39 |
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 61.11% of the companies listed in the same industry.
QSR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.53 | ||
| EV/EBITDA | 13.94 |
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)1.78
PEG (5Y)5.2
EPS Next 2Y10.44%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.46%.
Compared to an average industry Dividend Yield of 4.67, QSR pays a bit more dividend than its industry peers.
QSR's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
The dividend of QSR decreases each year by -6.89%.
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)-6.89%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
110.11% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP110.11%
EPS Next 2Y10.44%
EPS Next 3Y9.93%
TSX:QSR (5/29/2025, 7:00:00 PM)
97.62
-1.69 (-1.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.81%
Inst Owner ChangeN/A
Ins Owners1.15%
Ins Owner ChangeN/A
Market Cap31.98B
Analysts78
Price Target106.7 (9.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend3.17
Dividend Growth(5Y)-6.89%
DP110.11%
Div Incr Years9
Div Non Decr Years9
Ex-Date
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)-7.4%
PT rev (3m)-9.84%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 17.39 | ||
| P/S | 2.64 | ||
| P/FCF | 20.53 | ||
| P/OCF | 16.94 | ||
| P/B | 7.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.94 |
EPS(TTM)4.63
EY4.74%
EPS(NY)5.61
Fwd EY5.75%
FCF(TTM)4.75
FCFY4.87%
OCF(TTM)5.76
OCFY5.9%
SpS37.03
BVpS13.15
TBVpS-58.71
PEG (NY)1.78
PEG (5Y)5.2
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.39 |
F-Score5
WACC7.79%
ROIC/WACC1.06
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 Y11.85%
EPS Next 2Y10.44%
EPS Next 3Y9.93%
EPS Next 5Y9.29%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%21.28%
Revenue Next Year9.09%
Revenue Next 2Y6.09%
Revenue Next 3Y5.3%
Revenue Next 5Y3.5%
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%