RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:QSR - CA76131D1033 - Common Stock
95.15 CAD
+1.67 (+1.79%)
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. 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.
QSR had a positive operating cash flow in the past year.
In the past 5 years QSR has always been profitable.
QSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.59%, QSR is doing good in the industry, outperforming 72.22% of the companies in the same industry.
With an excellent Return On Equity value of 27.27%, QSR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
QSR's Return On Invested Capital of 8.41% is amongst the best of the industry. QSR outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QSR is in line with the industry average of 7.11%.
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
With a decent Profit Margin value of 9.95%, QSR is doing good in the industry, outperforming 72.22% of the companies in the same industry.
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.
Looking at the Gross Margin, with a value of 54.59%, QSR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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
QSR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
QSR has more shares outstanding than it did 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 72.22% 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.
Looking at the Debt to FCF ratio, with a value of 10.93, QSR is in the better half of the industry, outperforming 66.67% 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's Debt to Equity ratio of 4.05 is on the low side compared to the rest of the industry. QSR is outperformed by 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.03
WACC8.2%
2.3 Liquidity
A Current Ratio of 1.06 indicates that QSR should not have too much problems paying its short term obligations.
QSR has a Current ratio of 1.06. This is in the better half of the industry: QSR outperforms 77.78% of its industry peers.
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.
With a decent Quick ratio value of 0.98, QSR is doing good in the industry, outperforming 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.95% over the past year.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
Looking at the last year, QSR shows a quite strong growth in Revenue. The Revenue has grown by 16.82% in the last year.
QSR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.45% yearly.
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
QSR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.41% yearly.
Based on estimates for the next years, QSR will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
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
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
QSR is valuated rather expensively with a Price/Earnings ratio of 19.46.
Based on the Price/Earnings ratio, QSR is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.00. QSR is valued slightly cheaper when compared to this.
QSR is valuated correctly with a Price/Forward Earnings ratio of 16.95.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
QSR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.46 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. QSR is cheaper than 66.67% of the companies in the same industry.
66.67% 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 | 17.82 | ||
| EV/EBITDA | 12.97 |
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)1.69
PEG (5Y)4.8
EPS Next 2Y10.29%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.63%, QSR has a reasonable but not impressive dividend return.
QSR's Dividend Yield is a higher than the industry average which is at 2.56.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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.
As QSR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 (1/8/2026, 7:00:00 PM)
95.15
+1.67 (+1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
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
Analysts76.52
Price Target109.08 (14.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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)-0.12%
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 | 19.46 | ||
| Fwd PE | 16.95 | ||
| P/S | 2.43 | ||
| P/FCF | 17.82 | ||
| P/OCF | 14.97 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.97 |
EPS(TTM)4.89
EY5.14%
EPS(NY)5.61
Fwd EY5.9%
FCF(TTM)5.34
FCFY5.61%
OCF(TTM)6.36
OCFY6.68%
SpS39.17
BVpS14.3
TBVpS-59.07
PEG (NY)1.69
PEG (5Y)4.8
Graham Number39.66
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
WACC8.2%
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)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 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 19.46 and the Price/Book (PB) ratio is 6.66.
How financially healthy is RESTAURANT BRANDS INTERN?
The financial health rating of RESTAURANT BRANDS INTERN (QSR.CA) is 3 / 10.