RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - TSX:QSR - CA76131D1033 - Common Stock
94.42 CAD
-0.29 (-0.31%)
Overall QSR gets a fundamental rating of 5 out of 10. We evaluated QSR against 16 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.34%, QSR is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
QSR has a Return On Equity of 25.90%. This is amongst the best in the industry. QSR outperforms 100.00% of its industry peers.
QSR has a better Return On Invested Capital (8.19%) than 81.25% 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 6.47%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 25.9% | ||
| ROIC | 8.19% |
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
QSR has a Profit Margin of 9.43%. This is in the better half of the industry: QSR outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of QSR has remained more or less at the same level.
The Operating Margin of QSR (25.82%) is better than 81.25% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
QSR's Gross Margin of 54.76% is fine compared to the rest of the industry. QSR outperforms 68.75% of its industry peers.
QSR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.82% | ||
| PM (TTM) | 9.43% | ||
| GM | 54.76% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QSR is still creating some value.
Compared to 1 year ago, QSR has more shares outstanding
The number of shares outstanding for QSR has been increased compared to 5 years ago.
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 1.35. 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 1.35. This is in the better half of the industry: QSR outperforms 62.50% of its industry peers.
The Debt to FCF ratio of QSR is 11.45, which is on the high side as it means it would take QSR, 11.45 years of fcf income to pay off all of its debts.
QSR has a Debt to FCF ratio of 11.45. This is comparable to the rest of the industry: QSR outperforms 50.00% of its industry peers.
QSR has a Debt/Equity ratio of 4.13. This is a high value indicating a heavy dependency on external financing.
QSR has a worse Debt to Equity ratio (4.13) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.11
WACC7.41%
2.3 Liquidity
QSR has a Current Ratio of 1.01. This is a normal value and indicates that QSR is financially healthy and should not expect problems in meeting its short term obligations.
QSR has a better Current ratio (1.01) than 62.50% of its industry peers.
QSR has a Quick Ratio of 1.01. 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 Quick ratio of 0.95 is fine compared to the rest of the industry. QSR outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.86%.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
Looking at the last year, QSR shows a very strong growth in Revenue. The Revenue has grown by 21.80%.
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)5.86%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%9.3%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
3.2 Future
QSR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.42% yearly.
Based on estimates for the next years, QSR will show a small growth in Revenue. The Revenue will grow by 4.63% on average per year.
EPS Next Y11.25%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
EPS Next 5Y8.42%
Revenue Next Year10.63%
Revenue Next 2Y7.18%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
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
Based on the Price/Earnings ratio of 19.59, the valuation of QSR can be described as rather expensive.
QSR's Price/Earnings is on the same level as the industry average.
QSR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
Based on the Price/Forward Earnings ratio of 16.53, 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 62.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of QSR to the average of the S&P500 Index (22.94), we can say QSR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QSR is valued a bit cheaper than 68.75% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as QSR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.1 | ||
| EV/EBITDA | 13.18 |
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)1.74
PEG (5Y)4.83
EPS Next 2Y10.48%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.68%, QSR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.29, QSR pays a bit more dividend than its industry peers.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
The dividend of QSR decreases each year by -6.89%.
QSR has paid a dividend for at least 10 years, which is 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
124.21% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP124.21%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
TSX:QSR (10/17/2025, 7:00:00 PM)
94.42
-0.29 (-0.31%)
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 Cap30.95B
Analysts75.83
Price Target109.2 (15.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend3.22
Dividend Growth(5Y)-6.89%
DP124.21%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.42%
Min EPS beat(2)-5.14%
Max EPS beat(2)-3.69%
EPS beat(4)1
Avg EPS beat(4)-2.52%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)4
Avg EPS beat(8)-0.68%
EPS beat(12)7
Avg EPS beat(12)2.98%
EPS beat(16)11
Avg EPS beat(16)3.51%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)2.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.14%
Revenue beat(12)7
Avg Revenue beat(12)0.26%
Revenue beat(16)10
Avg Revenue beat(16)0.48%
PT rev (1m)0.1%
PT rev (3m)0.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.13%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 16.53 | ||
| P/S | 2.42 | ||
| P/FCF | 18.1 | ||
| P/OCF | 15.18 | ||
| P/B | 6.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.18 |
EPS(TTM)4.82
EY5.1%
EPS(NY)5.71
Fwd EY6.05%
FCF(TTM)5.22
FCFY5.53%
OCF(TTM)6.22
OCFY6.59%
SpS39.04
BVpS14.22
TBVpS-61.15
PEG (NY)1.74
PEG (5Y)4.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 25.9% | ||
| ROCE | 10.25% | ||
| ROIC | 8.19% | ||
| ROICexc | 8.57% | ||
| ROICexgc | 43.39% | ||
| OM | 25.82% | ||
| PM (TTM) | 9.43% | ||
| GM | 54.76% | ||
| FCFM | 13.36% |
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-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Debt/EBITDA | 5.16 | ||
| Cap/Depr | 76.97% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 54.65% | ||
| Profit Quality | 141.68% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.35 |
F-Score6
WACC7.41%
ROIC/WACC1.11
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)5.86%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%9.3%
EPS Next Y11.25%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
EPS Next 5Y8.42%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
Revenue Next Year10.63%
Revenue Next 2Y7.18%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
EBIT growth 1Y5.95%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.03%
EBIT Next 3Y11.54%
EBIT Next 5Y9.29%
FCF growth 1Y2.44%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y10.93%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%