RESTAURANT BRANDS INTERN (QSR)
CA76131D1033 - Common Stock
Overall QSR gets a fundamental rating of 4 out of 10. We evaluated QSR against 135 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years QSR always reported a positive cash flow from operatings.
1.2 Ratios
QSR has a Return On Assets of 5.09%. This is in the better half of the industry: QSR outperforms 67.91% of its industry peers.
The Return On Equity of QSR (41.52%) is better than 89.55% of its industry peers.
QSR's Return On Invested Capital of 7.93% is fine compared to the rest of the industry. QSR outperforms 64.93% of its industry peers.
QSR had an Average Return On Invested Capital over the past 3 years of 7.53%. This is below the industry average of 10.32%.
The last Return On Invested Capital (7.93%) for QSR is above the 3 year average (7.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 41.52% | ||
| ROIC | 7.93% |
ROA(3y)4.37%
ROA(5y)3.63%
ROE(3y)39.77%
ROE(5y)33.51%
ROIC(3y)7.53%
ROIC(5y)7.25%
1.3 Margins
With an excellent Profit Margin value of 16.95%, QSR belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
In the last couple of years the Profit Margin of QSR has grown nicely.
The Operating Margin of QSR (30.36%) is better than 95.52% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 65.32%, QSR is in the better half of the industry, outperforming 75.37% of the companies in the same industry.
QSR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.36% | ||
| PM (TTM) | 16.95% | ||
| GM | 65.32% |
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%
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.
The number of shares outstanding for QSR has been increased compared to 1 year ago.
The number of shares outstanding for QSR has been increased compared to 5 years ago.
Compared to 1 year ago, QSR has an improved debt to assets ratio.
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.
The Altman-Z score of QSR (1.35) is comparable to the rest of the industry.
The Debt to FCF ratio of QSR is 11.03, which is on the high side as it means it would take QSR, 11.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.03, QSR is in line with its industry, outperforming 56.72% of the companies in the same industry.
A Debt/Equity ratio of 4.59 is on the high side and indicates that QSR has dependencies on debt financing.
QSR has a worse Debt to Equity ratio (4.59) than 61.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.59 | ||
| Debt/FCF | 11.03 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.03
WACC7.67%
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 Current ratio of 1.01. This is comparable to the rest of the industry: QSR outperforms 50.00% 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 has a Quick ratio of 0.94. This is comparable to the rest of the industry: QSR outperforms 50.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.50% over the past year.
QSR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.32% yearly.
QSR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.95%.
Measured over the past years, QSR shows a small growth in Revenue. The Revenue has been growing by 5.56% on average per year.
EPS 1Y (TTM)3.5%
EPS 3Y17.18%
EPS 5Y4.32%
EPS growth Q2Q4.17%
Revenue 1Y (TTM)7.95%
Revenue growth 3Y12.23%
Revenue growth 5Y5.56%
Revenue growth Q2Q7.76%
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 13.27% yearly.
QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.87% yearly.
EPS Next Y8.41%
EPS Next 2Y10.59%
EPS Next 3Y11.49%
EPS Next 5Y13.27%
Revenue Next Year13.91%
Revenue Next 2Y11.3%
Revenue Next 3Y8.74%
Revenue Next 5Y5.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.98, the valuation of QSR can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 64.18% of the companies listed in the same industry.
QSR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.27, which indicates a rather expensive current valuation of QSR.
QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 61.94% of the companies in the same industry.
QSR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QSR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 70.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.6 | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
QSR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)5.08
EPS Next 2Y10.59%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
QSR's Dividend Yield is rather good when compared to the industry average which is at 2.55. QSR pays more dividend than 87.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, QSR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of QSR has a limited annual growth rate of 1.72%.
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)1.72%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
83.19% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
The dividend of QSR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP83.19%
EPS Next 2Y10.59%
EPS Next 3Y11.49%
RESTAURANT BRANDS INTERN
NYSE:QSR (4/19/2024, 7:12:30 PM)
After market: 71.4 -0.02 (-0.03%)71.42
+0.06 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
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Market Cap22.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 20.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.61
PEG (5Y)5.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 41.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.36% | ||
| PM (TTM) | 16.95% | ||
| GM | 65.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.5%
EPS 3Y17.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.95%
Revenue growth 3Y12.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y