RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:QSR - CA76131D1033 - Common Stock
93.66 CAD
-0.47 (-0.5%)
Taking everything into account, QSR scores 5 out of 10 in our fundamental rating. QSR was compared to 17 industry peers in the Hotels, Restaurants & Leisure industry. QSR scores excellent on profitability, 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.
QSR had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 3.59%, QSR is doing good in the industry, outperforming 70.59% of the companies in the same industry.
The Return On Equity of QSR (27.27%) is better than 100.00% of its industry peers.
QSR has a Return On Invested Capital of 8.41%. This is amongst the best in the industry. QSR outperforms 82.35% 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
The Profit Margin of QSR (9.95%) is better than 70.59% of its industry peers.
In the last couple of years the Profit Margin of QSR has remained more or less at the same level.
Looking at the Operating Margin, with a value of 25.95%, QSR is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Operating Margin of QSR has declined.
The Gross Margin of QSR (54.59%) is better than 64.71% 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.
QSR has more shares outstanding than it did 5 years ago.
QSR has about the same debt/assets ratio as last year.
2.2 Solvency
QSR has an Altman-Z score of 1.39. This is a bad value and indicates that QSR is not financially healthy and even has some risk of bankruptcy.
QSR has a better Altman-Z score (1.39) than 70.59% of its industry peers.
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.
With a decent Debt to FCF ratio value of 10.93, QSR is doing good in the industry, outperforming 64.71% 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.
QSR's Debt to Equity ratio of 4.05 is on the low side compared to the rest of the industry. QSR is outperformed by 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.39 |
ROIC/WACC1
WACC8.39%
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 76.47% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that QSR may have some problems paying 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 70.59% 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%.
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)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 Y11.53%
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 5Y4.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 19.39, QSR is valued on the expensive side.
QSR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.51. QSR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.89, the valuation of QSR can be described as correct.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, QSR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 16.89 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, QSR is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
The 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)1.68
PEG (5Y)4.78
EPS Next 2Y10.29%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.56%.
QSR's Dividend Yield is a higher than the industry average which is at 2.52.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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
118.00% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP118%
EPS Next 2Y10.29%
EPS Next 3Y9.59%
TSX:QSR (12/31/2025, 7:00:00 PM)
93.66
-0.47 (-0.5%)
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 Cap30.70B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts76.52
Price Target109.08 (16.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend3.14
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)-1.58%
PT rev (3m)0.39%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 16.89 | ||
| P/S | 2.42 | ||
| P/FCF | 17.75 | ||
| P/OCF | 14.92 | ||
| P/B | 6.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.94 |
EPS(TTM)4.83
EY5.16%
EPS(NY)5.55
Fwd EY5.92%
FCF(TTM)5.28
FCFY5.63%
OCF(TTM)6.28
OCFY6.7%
SpS38.69
BVpS14.12
TBVpS-58.35
PEG (NY)1.68
PEG (5Y)4.78
Graham Number39.17
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 | 1.39 |
F-Score6
WACC8.39%
ROIC/WACC1
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 5Y4.81%
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 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.
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 19.39 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.