RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
TSX:QSR - Toronto Stock Exchange - CA76131D1033 - Common Stock - Currency: CAD
Taking everything into account, QSR scores 5 out of 10 in our fundamental rating. QSR was compared to 19 industry peers in the Hotels, Restaurants & Leisure industry. QSR scores excellent on profitability, 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.
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's Return On Assets of 3.82% is fine compared to the rest of the industry. QSR outperforms 63.16% of its industry peers.
QSR has a Return On Equity of 30.49%. This is amongst the best in the industry. QSR outperforms 100.00% of its industry peers.
QSR's Return On Invested Capital of 8.29% is fine compared to the rest 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 6.86%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 30.49% | ||
| ROIC | 8.29% |
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 10.82%. This is in the better half of the industry: QSR outperforms 73.68% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
QSR has a Operating Margin of 26.31%. This is in the better half of the industry: QSR outperforms 78.95% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
With a decent Gross Margin value of 56.03%, QSR is doing good in the industry, outperforming 73.68% of the companies in the same industry.
QSR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.31% | ||
| PM (TTM) | 10.82% | ||
| GM | 56.03% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QSR is creating some value.
Compared to 1 year ago, QSR has more shares outstanding
QSR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for QSR has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that QSR is in the distress zone and has some risk of bankruptcy.
QSR has a better Altman-Z score (1.37) than 63.16% of its industry peers.
The Debt to FCF ratio of QSR is 12.37, which is on the high side as it means it would take QSR, 12.37 years of fcf income to pay off all of its debts.
QSR has a Debt to FCF ratio (12.37) which is comparable to the rest of the industry.
A Debt/Equity ratio of 4.40 is on the high side and indicates that QSR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.40, QSR is doing worse than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.4 | ||
| Debt/FCF | 12.37 | ||
| Altman-Z | 1.37 |
ROIC/WACC1.03
WACC8.04%
2.3 Liquidity
A Current Ratio of 0.96 indicates that QSR may have some problems paying its short term obligations.
QSR has a Current ratio of 0.96. This is comparable to the rest of the industry: QSR outperforms 57.89% of its industry peers.
A Quick Ratio of 0.90 indicates that QSR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, QSR is in line with its industry, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.72%.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
QSR shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.38%.
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)3.72%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%2.74%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%21.28%
3.2 Future
Based on estimates for the next years, QSR will show a small growth in Earnings Per Share. The EPS will grow by 7.85% on average per year.
QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.84% yearly.
EPS Next Y11.44%
EPS Next 2Y10.39%
EPS Next 3Y9.86%
EPS Next 5Y7.85%
Revenue Next Year8.61%
Revenue Next 2Y5.88%
Revenue Next 3Y4.98%
Revenue Next 5Y2.84%
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 20.18 indicates a rather expensive valuation of QSR.
QSR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of QSR to the average of the S&P500 Index (27.47), we can say QSR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.67, the valuation of QSR can be described as correct.
68.42% of the companies in the same industry are more expensive than QSR, based on the Price/Forward Earnings ratio.
QSR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QSR is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QSR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.67 | ||
| EV/EBITDA | 13.57 |
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)1.76
PEG (5Y)4.98
EPS Next 2Y10.39%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.58%, QSR has a reasonable but not impressive dividend return.
QSR's Dividend Yield is a higher than the industry average which is at 4.35.
Compared to an average S&P500 Dividend Yield of 2.37, QSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
The dividend of QSR decreases each year by -6.88%.
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)-6.88%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
QSR pays out 110.11% of its income as dividend. This is not a sustainable payout ratio.
DP110.11%
EPS Next 2Y10.39%
EPS Next 3Y9.86%
TSX:QSR (7/10/2025, 7:00:00 PM)
92.62
+0.62 (+0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.45%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap30.35B
Analysts77.14
Price Target108.54 (17.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend3.12
Dividend Growth(5Y)-6.88%
DP110.11%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.57%
Min EPS beat(2)-5.14%
Max EPS beat(2)2.01%
EPS beat(4)1
Avg EPS beat(4)-1.93%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)5
Avg EPS beat(8)0.98%
EPS beat(12)8
Avg EPS beat(12)4.24%
EPS beat(16)12
Avg EPS beat(16)5.29%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)1.76%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)0.34%
Revenue beat(16)10
Avg Revenue beat(16)0.58%
PT rev (1m)1.73%
PT rev (3m)-5.8%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 16.67 | ||
| P/S | 2.53 | ||
| P/FCF | 19.67 | ||
| P/OCF | 16.23 | ||
| P/B | 7.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.57 |
EPS(TTM)4.59
EY4.96%
EPS(NY)5.55
Fwd EY6%
FCF(TTM)4.71
FCFY5.08%
OCF(TTM)5.71
OCFY6.16%
SpS36.67
BVpS13.02
TBVpS-58.14
PEG (NY)1.76
PEG (5Y)4.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 30.49% | ||
| ROCE | 10.38% | ||
| ROIC | 8.29% | ||
| ROICexc | 8.64% | ||
| ROICexgc | 42.65% | ||
| OM | 26.31% | ||
| PM (TTM) | 10.82% | ||
| GM | 56.03% | ||
| FCFM | 12.84% |
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-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.4 | ||
| Debt/FCF | 12.37 | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 83.57% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 52.64% | ||
| Profit Quality | 118.63% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.37 |
F-Score5
WACC8.04%
ROIC/WACC1.03
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)3.72%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%2.74%
EPS Next Y11.44%
EPS Next 2Y10.39%
EPS Next 3Y9.86%
EPS Next 5Y7.85%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%21.28%
Revenue Next Year8.61%
Revenue Next 2Y5.88%
Revenue Next 3Y4.98%
Revenue Next 5Y2.84%
EBIT growth 1Y6.21%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.36%
EBIT Next 3Y11.29%
EBIT Next 5Y9.29%
FCF growth 1Y-9.33%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y1.11%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%