RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
TSX:QSR - CA76131D1033 - Common Stock
85.81 CAD
+0.13 (+0.15%)
Taking everything into account, QSR scores 5 out of 10 in our fundamental rating. QSR was compared to 18 industry peers in the Hotels, Restaurants & Leisure industry. While QSR belongs to the best of the industry regarding profitability, 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.
In the past year QSR had a positive cash flow from operations.
QSR had positive earnings in each of the past 5 years.
In the past 5 years QSR always reported a positive cash flow from operatings.
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 66.67% of the companies in the same industry.
QSR's Return On Equity of 25.90% is amongst the best of the industry. QSR outperforms 100.00% of its industry peers.
The Return On Invested Capital of QSR (8.19%) is better 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 6.35%.
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 77.78% of its industry peers.
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 (25.82%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
Looking at the Gross Margin, with a value of 54.76%, QSR is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
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
QSR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, QSR has more shares outstanding
Compared to 5 years ago, QSR has more shares outstanding
Compared to 1 year ago, QSR has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that QSR is in the distress zone and has some risk of bankruptcy.
QSR has a better Altman-Z score (1.30) than 66.67% of its industry peers.
QSR has a debt to FCF ratio of 11.45. This is a negative value and a sign of low solvency as QSR would need 11.45 years to pay back of all of its debts.
QSR has a Debt to FCF ratio of 11.45. This is in the better half of the industry: QSR outperforms 61.11% 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 Debt to Equity ratio of 4.13. This is in the lower half of the industry: QSR underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.99
WACC8.28%
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 66.67% of its industry peers.
A Quick Ratio of 0.95 indicates that QSR may have some problems paying its short term obligations.
QSR's Quick ratio of 0.95 is fine compared to the rest of the industry. QSR outperforms 61.11% 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%.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue Next Year10.67%
Revenue Next 2Y7.23%
Revenue Next 3Y5.9%
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
The Price/Earnings ratio is 18.07, which indicates a rather expensive current valuation of QSR.
Compared to the rest of the industry, the Price/Earnings ratio of QSR is on the same level as its industry peers.
QSR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
Based on the Price/Forward Earnings ratio of 15.23, the valuation of QSR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 77.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of QSR to the average of the S&P500 Index (22.54), we can say QSR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 15.23 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 61.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.68 | ||
| EV/EBITDA | 12.51 |
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)1.59
PEG (5Y)4.46
EPS Next 2Y10.49%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.99%, QSR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.20, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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 2Y10.49%
EPS Next 3Y9.54%
TSX:QSR (9/10/2025, 7:00:00 PM)
85.81
+0.13 (+0.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.85%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap28.13B
Analysts77.5
Price Target109.1 (27.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
Yearly Dividend3.16
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)0.3%
PT rev (3m)0.61%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)0.73%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)1.85%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 15.23 | ||
| P/S | 2.23 | ||
| P/FCF | 16.68 | ||
| P/OCF | 13.99 | ||
| P/B | 6.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.51 |
EPS(TTM)4.75
EY5.54%
EPS(NY)5.63
Fwd EY6.56%
FCF(TTM)5.15
FCFY6%
OCF(TTM)6.13
OCFY7.15%
SpS38.5
BVpS14.02
TBVpS-60.3
PEG (NY)1.59
PEG (5Y)4.46
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 | 1.3 |
F-Score6
WACC8.28%
ROIC/WACC0.99
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 Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
Revenue Next Year10.67%
Revenue Next 2Y7.23%
Revenue Next 3Y5.9%
Revenue Next 5Y4.63%
EBIT growth 1Y5.95%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year26.09%
EBIT Next 3Y13.39%
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%