RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:QSR - CA76131D1033 - Common Stock
99.35 CAD
-2.3 (-2.26%)
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 is not valued too expensively and it also shows a decent 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.
In the past 5 years QSR always reported a positive cash flow from operatings.
1.2 Ratios
QSR has a better Return On Assets (3.59%) than 66.67% of its industry peers.
The Return On Equity of QSR (27.27%) is better than 100.00% of its industry peers.
The Return On Invested Capital of QSR (8.41%) is better than 83.33% 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 6.52%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.41%), indicating increased profibility in the last year.
| 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
QSR has a better Profit Margin (9.95%) than 72.22% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
QSR's Operating Margin of 25.95% is fine compared to the rest of the industry. QSR outperforms 77.78% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
QSR's Gross Margin of 54.59% is fine compared to the rest of the industry. QSR outperforms 66.67% 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
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
The number of shares outstanding for QSR has been increased compared to 5 years ago.
Compared to 1 year ago, QSR has about the same debt to assets ratio.
2.2 Solvency
QSR has an Altman-Z score of 1.42. 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 1.42, QSR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
QSR has a debt to FCF ratio of 10.93. This is a negative value and a sign of low solvency as QSR would need 10.93 years to pay back of 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 61.11% of the companies in the same industry.
QSR has a Debt/Equity ratio of 4.05. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.05, QSR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.12
WACC7.52%
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.
With a decent Current ratio value of 1.06, QSR is doing good in the industry, outperforming 72.22% 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.
Looking at the Quick ratio, with a value of 0.98, QSR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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%.
Measured over the past 5 years, QSR shows a small growth in Earnings Per Share. The EPS has been growing by 4.05% on average per year.
QSR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.82%.
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
Based on estimates for the next years, QSR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.41% on average per year.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y11.07%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5Y9.41%
Revenue Next Year11.63%
Revenue Next 2Y7.7%
Revenue Next 3Y6.07%
Revenue Next 5Y4.81%
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
With a Price/Earnings ratio of 20.40, QSR is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as QSR.
When comparing the Price/Earnings ratio of QSR to the average of the S&P500 Index (26.34), we can say QSR is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.81, 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 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, QSR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 61.11% of the companies listed in the same industry.
61.11% of the companies in the same industry are more expensive than QSR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.68 | ||
| EV/EBITDA | 13.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QSR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of QSR may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)5.03
EPS Next 2Y10.14%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.45%.
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 a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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 2Y10.14%
EPS Next 3Y9.53%
TSX:QSR (12/8/2025, 7:00:00 PM)
99.35
-2.3 (-2.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.18%
Inst Owner ChangeN/A
Ins Owners1.36%
Ins Owner ChangeN/A
Market Cap32.57B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts76.52
Price Target110.23 (10.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend3.2
Dividend Growth(5Y)-6.89%
DP118%
Div Incr Years9
Div Non Decr Years9
Ex-Date
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)0.35%
PT rev (3m)1.03%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 17.81 | ||
| P/S | 2.55 | ||
| P/FCF | 18.68 | ||
| P/OCF | 15.7 | ||
| P/B | 6.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.37 |
EPS(TTM)4.87
EY4.9%
EPS(NY)5.58
Fwd EY5.61%
FCF(TTM)5.32
FCFY5.35%
OCF(TTM)6.33
OCFY6.37%
SpS39.01
BVpS14.24
TBVpS-58.83
PEG (NY)1.84
PEG (5Y)5.03
Graham Number39.5
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 | 1.42 |
F-Score6
WACC7.52%
ROIC/WACC1.12
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 Y11.07%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5Y9.41%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
Revenue Next Year11.63%
Revenue Next 2Y7.7%
Revenue Next 3Y6.07%
Revenue Next 5Y4.81%
EBIT growth 1Y7.13%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.11%
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.
What is the valuation status for QSR stock?
ChartMill assigns a valuation rating of 4 / 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.
Can you provide the PE and PB ratios for QSR stock?
The Price/Earnings (PE) ratio for RESTAURANT BRANDS INTERN (QSR.CA) is 20.4 and the Price/Book (PB) ratio is 6.98.
What is the expected EPS growth for RESTAURANT BRANDS INTERN (QSR.CA) stock?
The Earnings per Share (EPS) of RESTAURANT BRANDS INTERN (QSR.CA) is expected to grow by 11.07% in the next year.