RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - TSX:QSR - CA76131D1033 - Common Stock
96.92 CAD
+0.41 (+0.42%)
Overall QSR gets a fundamental rating of 5 out of 10. We evaluated QSR against 18 industry peers in the Hotels, Restaurants & Leisure industry. QSR scores excellent on profitability, but there are concerns on its financial health. QSR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year QSR was profitable.
In the past year QSR had a positive cash flow from operations.
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.
1.2 Ratios
QSR has a better Return On Assets (3.59%) than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 27.27%, QSR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
QSR has a better Return On Invested Capital (8.41%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QSR is in line with the industry average of 6.56%.
The last Return On Invested Capital (8.41%) for QSR is above the 3 year average (8.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 27.27% | ||
| ROIC | 8.41% |
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
With a decent Profit Margin value of 9.95%, QSR is doing good in the industry, outperforming 77.78% 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.
Looking at the Operating Margin, with a value of 25.95%, QSR is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of QSR has declined.
QSR has a better Gross Margin (54.59%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of QSR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.95% | ||
| PM (TTM) | 9.95% | ||
| GM | 54.59% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QSR is creating some value.
Compared to 1 year ago, QSR has more shares outstanding
Compared to 5 years ago, QSR has more shares outstanding
QSR has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that QSR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.39, QSR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of QSR is 10.93, which is on the high side as it means it would take QSR, 10.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.93, QSR is in line with its industry, outperforming 55.56% of the companies in the same industry.
A Debt/Equity ratio of 4.05 is on the high side and indicates that QSR has dependencies on debt financing.
QSR has a worse Debt to Equity ratio (4.05) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.17
WACC7.18%
2.3 Liquidity
QSR has a Current Ratio of 1.06. This is a normal value and indicates that QSR is financially healthy and should not expect problems in meeting its short term obligations.
QSR's Current ratio of 1.06 is fine compared to the rest of the industry. QSR outperforms 66.67% of its industry peers.
QSR has a Quick Ratio of 1.06. 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 0.98, 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 | 1.06 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.95%.
QSR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.05% yearly.
Looking at the last year, QSR shows a quite strong growth in Revenue. The Revenue has grown by 16.82% in the last year.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
EPS 1Y (TTM)7.95%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%10.75%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
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 9.41% on average per year.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y11.39%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
EPS Next 5Y9.41%
Revenue Next Year11.46%
Revenue Next 2Y7.59%
Revenue Next 3Y6.15%
Revenue Next 5Y4.81%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.62, QSR is valued on the expensive side.
QSR's Price/Earnings is on the same level as the industry average.
QSR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.09, the valuation of QSR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, QSR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 17.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QSR is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QSR is valued a bit cheaper than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.96 | ||
| EV/EBITDA | 13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of QSR may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)4.84
EPS Next 2Y10.27%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, QSR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.33, QSR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, QSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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.
As QSR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-6.89%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
QSR pays out 118.00% of its income as dividend. This is not a sustainable payout ratio.
DP118%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
TSX:QSR (11/12/2025, 7:00:00 PM)
96.92
+0.41 (+0.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap31.77B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts75.83
Price Target109.84 (13.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
Yearly Dividend3.24
Dividend Growth(5Y)-6.89%
DP118%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.91%
Min EPS beat(2)-3.69%
Max EPS beat(2)1.88%
EPS beat(4)2
Avg EPS beat(4)-1.24%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)4
Avg EPS beat(8)-0.97%
EPS beat(12)7
Avg EPS beat(12)1.59%
EPS beat(16)11
Avg EPS beat(16)3.48%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.24%
Max Revenue beat(2)2.77%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2.77%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)7
Avg Revenue beat(12)0.14%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)0.59%
PT rev (3m)2.74%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 17.09 | ||
| P/S | 2.45 | ||
| P/FCF | 17.96 | ||
| P/OCF | 15.09 | ||
| P/B | 6.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13 |
EPS(TTM)4.94
EY5.1%
EPS(NY)5.67
Fwd EY5.85%
FCF(TTM)5.4
FCFY5.57%
OCF(TTM)6.42
OCFY6.63%
SpS39.59
BVpS14.45
TBVpS-59.7
PEG (NY)1.72
PEG (5Y)4.84
Graham Number40.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 27.27% | ||
| ROCE | 10.53% | ||
| ROIC | 8.41% | ||
| ROICexc | 8.88% | ||
| ROICexgc | 45.02% | ||
| OM | 25.95% | ||
| PM (TTM) | 9.95% | ||
| GM | 54.59% | ||
| FCFM | 13.63% |
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%
ROICexgc growth 3Y-4.66%
ROICexgc 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 79.47% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 3.29 | ||
| Cash Conversion | 55.54% | ||
| Profit Quality | 136.99% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.39 |
F-Score6
WACC7.18%
ROIC/WACC1.17
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)7.95%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%10.75%
EPS Next Y11.39%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
EPS Next 5Y9.41%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
Revenue Next Year11.46%
Revenue Next 2Y7.59%
Revenue Next 3Y6.15%
Revenue Next 5Y4.81%
EBIT growth 1Y7.13%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.03%
EBIT Next 3Y11.54%
EBIT Next 5Y9.29%
FCF growth 1Y3.36%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y11.91%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%
RESTAURANT BRANDS INTERN / QSR.CA FAQ
What is the ChartMill fundamental rating of RESTAURANT BRANDS INTERN (QSR.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to QSR.CA.
What is the valuation status for QSR stock?
ChartMill assigns a valuation rating of 5 / 10 to RESTAURANT BRANDS INTERN (QSR.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for RESTAURANT BRANDS INTERN?
RESTAURANT BRANDS INTERN (QSR.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for QSR stock?
The Price/Earnings (PE) ratio for RESTAURANT BRANDS INTERN (QSR.CA) is 19.62 and the Price/Book (PB) ratio is 6.71.
What is the expected EPS growth for RESTAURANT BRANDS INTERN (QSR.CA) stock?
The Earnings per Share (EPS) of RESTAURANT BRANDS INTERN (QSR.CA) is expected to grow by 11.39% in the next year.