RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:QSR - CA76131D1033 - Common Stock
101.54 CAD
+0.07 (+0.07%)
We assign a fundamental rating of 5 out of 10 to QSR. 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 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.
In the past 5 years QSR has always been profitable.
Each year in the past 5 years QSR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QSR (3.59%) is better than 66.67% of its industry peers.
The Return On Equity of QSR (27.27%) is better than 100.00% of its industry peers.
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 6.58%.
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
QSR has a Profit Margin of 9.95%. This is in the better half of the industry: QSR outperforms 72.22% of its industry peers.
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 77.78% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
QSR has a better Gross Margin (54.59%) than 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.
QSR has more shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 1.42, we must say that QSR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of QSR (1.42) is better than 66.67% of its industry peers.
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.
QSR's Debt to FCF ratio of 10.93 is fine compared to the rest of the industry. QSR outperforms 61.11% of its industry peers.
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/WACC1.16
WACC7.26%
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.
The Current ratio of QSR (1.06) is better than 72.22% 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.
QSR's Quick ratio of 0.98 is fine compared to the rest of the industry. QSR outperforms 66.67% 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%.
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.
The Revenue has grown by 16.82% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 9.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y11.39%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
EPS Next 5Y9.41%
Revenue Next Year11.46%
Revenue Next 2Y7.59%
Revenue Next 3Y6.15%
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.
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 20.51.
Compared to the rest of the industry, the Price/Earnings ratio of QSR is on the same level as its industry peers.
QSR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
QSR is valuated rather expensively with a Price/Forward Earnings ratio of 17.89.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 66.67% of the companies listed in the same industry.
QSR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 17.89 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. QSR is cheaper than 61.11% 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 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 13.43 |
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.
QSR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)5.06
EPS Next 2Y10.27%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, QSR has a reasonable but not impressive dividend return.
QSR's Dividend Yield is a higher than the industry average which is at 4.22.
Compared to an average S&P500 Dividend Yield of 2.34, QSR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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
QSR pays out 118.00% of its income as dividend. This is not a sustainable payout ratio.
DP118%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
TSX:QSR (11/28/2025, 7:00:00 PM)
101.54
+0.07 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap33.29B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts75.83
Price Target110.83 (9.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend3.21
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)1.49%
PT rev (3m)1.59%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 17.89 | ||
| P/S | 2.56 | ||
| P/FCF | 18.8 | ||
| P/OCF | 15.8 | ||
| P/B | 7.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.43 |
EPS(TTM)4.95
EY4.87%
EPS(NY)5.67
Fwd EY5.59%
FCF(TTM)5.4
FCFY5.32%
OCF(TTM)6.43
OCFY6.33%
SpS39.61
BVpS14.46
TBVpS-59.73
PEG (NY)1.8
PEG (5Y)5.06
Graham Number40.12
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
WACC7.26%
ROIC/WACC1.16
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 Y11.39%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
EPS Next 5Y9.41%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
Revenue Next Year11.46%
Revenue Next 2Y7.59%
Revenue Next 3Y6.15%
Revenue Next 5Y4.81%
EBIT growth 1Y7.13%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.03%
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 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.
Can you provide the PE and PB ratios for QSR stock?
The Price/Earnings (PE) ratio for RESTAURANT BRANDS INTERN (QSR.CA) is 20.51 and the Price/Book (PB) ratio is 7.02.
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 11.39% in the next year.