RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:QSR - CA76131D1033 - Common Stock
95.14 CAD
-1.54 (-1.59%)
QSR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 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 correct valuation and a medium growth rate.
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.
- In the past 5 years QSR has always been profitable.
- In the past 5 years QSR always reported a positive cash flow from operatings.
1.2 Ratios
- QSR has a Return On Assets of 3.59%. This is in the better half of the industry: QSR outperforms 68.42% of its industry peers.
- QSR has a better Return On Equity (27.27%) than 94.74% of its industry peers.
- QSR has a Return On Invested Capital of 8.41%. This is in the better half of the industry: QSR outperforms 78.95% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for QSR is in line with the industry average of 8.63%.
- 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
- Looking at the Profit Margin, with a value of 9.95%, QSR is in the better half of the industry, outperforming 68.42% 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.
- The Operating Margin of QSR (25.95%) is better than 78.95% of its industry peers.
- In the last couple of years the Operating Margin of QSR has declined.
- The Gross Margin of QSR (54.59%) is better than 63.16% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QSR is still 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.
- QSR has about the same debt/assets ratio as last year.
2.2 Solvency
- QSR has an Altman-Z score of 1.40. This is a bad value and indicates that QSR is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.40, QSR is in the better half of the industry, outperforming 73.68% 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 the better half of the industry, outperforming 63.16% 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 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.4 |
ROIC/WACC1.05
WACC8.02%
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.
- Looking at the Current ratio, with a value of 1.06, QSR is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
- 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.
- The Quick ratio of QSR (0.98) is better than 68.42% of its industry peers.
| 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.
- The Revenue has grown by 16.82% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 9.41% on average over the next years. This is quite good.
- QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
EPS Next Y11.53%
EPS Next 2Y10.29%
EPS Next 3Y9.59%
EPS Next 5Y9.41%
Revenue Next Year11.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.05%
Revenue Next 5Y4.31%
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
- A Price/Earnings ratio of 19.38 indicates a rather expensive 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 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 16.89, 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 63.16% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of QSR to the average of the S&P500 Index (24.26), we can say QSR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 16.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QSR is valued a bit cheaper than 63.16% of the companies in the same industry.
- QSR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. QSR is cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.76 | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
- QSR's 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)1.68
PEG (5Y)4.78
EPS Next 2Y10.29%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.57%, QSR has a reasonable but not impressive dividend return.
- QSR's Dividend Yield is a higher than the industry average which is at 2.39.
- QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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
- QSR pays out 118.00% of its income as dividend. This is not a sustainable payout ratio.
DP118%
EPS Next 2Y10.29%
EPS Next 3Y9.59%
TSX:QSR (1/16/2026, 7:00:00 PM)
95.14
-1.54 (-1.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-12 2026-02-12/amc
Inst Owners93.17%
Inst Owner ChangeN/A
Ins Owners1.36%
Ins Owner ChangeN/A
Market Cap31.19B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts74.55
Price Target111.63 (17.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
Yearly Dividend3.18
Dividend Growth(5Y)-6.89%
DP118%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
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)-1.04%
PT rev (3m)-0.12%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.84%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 16.89 | ||
| P/S | 2.42 | ||
| P/FCF | 17.76 | ||
| P/OCF | 14.92 | ||
| P/B | 6.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.08 |
EPS(TTM)4.91
EY5.16%
EPS(NY)5.63
Fwd EY5.92%
FCF(TTM)5.36
FCFY5.63%
OCF(TTM)6.37
OCFY6.7%
SpS39.29
BVpS14.34
TBVpS-59.25
PEG (NY)1.68
PEG (5Y)4.78
Graham Number39.8
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 | 1.4 |
F-Score6
WACC8.02%
ROIC/WACC1.05
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 Y11.53%
EPS Next 2Y10.29%
EPS Next 3Y9.59%
EPS Next 5Y9.41%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
Revenue Next Year11.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.05%
Revenue Next 5Y4.31%
EBIT growth 1Y7.13%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year22.7%
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.
Can you provide the valuation status for RESTAURANT BRANDS INTERN?
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.
What are the PE and PB ratios of RESTAURANT BRANDS INTERN (QSR.CA) stock?
The Price/Earnings (PE) ratio for RESTAURANT BRANDS INTERN (QSR.CA) is 19.38 and the Price/Book (PB) ratio is 6.63.
How financially healthy is RESTAURANT BRANDS INTERN?
The financial health rating of RESTAURANT BRANDS INTERN (QSR.CA) is 3 / 10.