RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - TSX:QSR - CA76131D1033 - Common Stock
87.89 CAD
+1.1 (+1.27%)
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 correct valuation and a medium growth rate.
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's Return On Assets of 3.34% is fine compared to the rest of the industry. QSR outperforms 66.67% of its industry peers.
The Return On Equity of QSR (25.90%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 8.19%, QSR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
QSR had an Average Return On Invested Capital over the past 3 years of 8.03%. This 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's Profit Margin of 9.43% is fine compared to the rest of the industry. QSR outperforms 77.78% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 25.82%, QSR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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 72.22% of its industry peers.
In the last couple of years the Gross Margin of QSR has declined.
| 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 below the Cost of Capital (WACC), so QSR is destroying 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
QSR has an Altman-Z score of 1.31. This is a bad value and indicates that QSR is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.31, QSR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 better Debt to FCF ratio (11.45) than 61.11% of its industry peers.
A Debt/Equity ratio of 4.13 is on the high side and indicates that QSR has dependencies on debt financing.
QSR has a worse Debt to Equity ratio (4.13) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.98
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.01 indicates that QSR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.01, QSR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that QSR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, QSR is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
| 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%.
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 very strong growth in Revenue. The Revenue has grown by 21.80%.
Measured over the past years, QSR shows a quite strong growth in Revenue. The Revenue has been growing by 8.45% on average per year.
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 8.77% yearly.
QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
EPS Next Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue Next Year10.67%
Revenue Next 2Y7.24%
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.
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
A Price/Earnings ratio of 18.58 indicates a rather expensive valuation of QSR.
The rest of the industry has a similar Price/Earnings ratio as QSR.
The average S&P500 Price/Earnings ratio is at 27.38. QSR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.69, the valuation of QSR can be described as correct.
QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 72.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. QSR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QSR is valued a bit cheaper than the industry average as 66.67% 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 | 17.18 | ||
| EV/EBITDA | 12.64 |
4.3 Compensation for Growth
QSR's 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)1.64
PEG (5Y)4.58
EPS Next 2Y10.49%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.91%.
QSR's Dividend Yield is a higher than the industry average which is at 4.18.
Compared to an average S&P500 Dividend Yield of 2.38, QSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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
QSR pays out 124.21% of its income as dividend. This is not a sustainable payout ratio.
DP124.21%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
TSX:QSR (9/19/2025, 7:00:00 PM)
87.89
+1.1 (+1.27%)
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 Cap28.81B
Analysts77.5
Price Target108.66 (23.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend3.18
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)1.63%
PT rev (3m)0.2%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 15.69 | ||
| P/S | 2.3 | ||
| P/FCF | 17.18 | ||
| P/OCF | 14.41 | ||
| P/B | 6.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.64 |
EPS(TTM)4.73
EY5.38%
EPS(NY)5.6
Fwd EY6.37%
FCF(TTM)5.12
FCFY5.82%
OCF(TTM)6.1
OCFY6.94%
SpS38.29
BVpS13.95
TBVpS-59.97
PEG (NY)1.64
PEG (5Y)4.58
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 | 1.31 |
F-Score6
WACC8.36%
ROIC/WACC0.98
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 2Y7.24%
Revenue Next 3Y5.84%
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%