RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
TSX:QSR - Toronto Stock Exchange - CA76131D1033 - Common Stock - Currency: CAD
Overall QSR gets a fundamental rating of 5 out of 10. We evaluated QSR against 18 industry peers in the Hotels, Restaurants & Leisure industry. While QSR has a great profitability rating, there are quite some 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.
QSR had a positive operating cash flow in the past year.
QSR had positive earnings in each of the past 5 years.
Each year in the past 5 years QSR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.15%, QSR is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
QSR has a Return On Equity of 32.83%. This is amongst the best in the industry. QSR outperforms 100.00% of its industry peers.
QSR's Return On Invested Capital of 8.27% is fine compared to the rest of the industry. QSR outperforms 70.59% of its industry peers.
QSR had an Average Return On Invested Capital over the past 3 years of 8.00%. This is in line with the industry average of 7.54%.
The 3 year average ROIC (8.00%) for QSR is below the current ROIC(8.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 32.83% | ||
| ROIC | 8.27% |
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8%
ROIC(5y)7.42%
1.3 Margins
QSR's Profit Margin of 12.15% is fine compared to the rest of the industry. QSR outperforms 70.59% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 27.43%, QSR is doing good in the industry, outperforming 76.47% of the companies in the same industry.
QSR's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 58.32%, QSR belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
QSR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.43% | ||
| PM (TTM) | 12.15% | ||
| GM | 58.32% |
OM growth 3Y-6.19%
OM growth 5Y-5.34%
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
Compared to 5 years ago, QSR has more shares outstanding
Compared to 1 year ago, QSR has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that QSR is in the distress zone and has some risk of bankruptcy.
QSR has a Altman-Z score (1.38) which is comparable to the rest of the industry.
QSR has a debt to FCF ratio of 10.72. This is a negative value and a sign of low solvency as QSR would need 10.72 years to pay back of all of its debts.
QSR has a Debt to FCF ratio of 10.72. This is comparable to the rest of the industry: QSR outperforms 52.94% of its industry peers.
A Debt/Equity ratio of 4.42 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 4.42, QSR is doing worse than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.42 | ||
| Debt/FCF | 10.72 | ||
| Altman-Z | 1.38 |
ROIC/WACC1.03
WACC8.04%
2.3 Liquidity
QSR has a Current Ratio of 0.97. 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 Current ratio of 0.97 is fine compared to the rest of the industry. QSR outperforms 64.71% of its industry peers.
A Quick Ratio of 0.91 indicates that QSR may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.91, QSR is doing good in the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.46% over the past year.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
QSR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.71%.
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)2.46%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%8%
Revenue 1Y (TTM)19.71%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%26.15%
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 10.57% on average per year.
QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.05% yearly.
EPS Next Y13.71%
EPS Next 2Y11.31%
EPS Next 3Y11.48%
EPS Next 5Y10.57%
Revenue Next Year9.16%
Revenue Next 2Y6.29%
Revenue Next 3Y5.73%
Revenue Next 5Y5.05%
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 20.97, QSR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 64.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. QSR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.42 indicates a rather expensive valuation of QSR.
QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 70.59% of the companies in the same industry.
QSR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 18.42 |
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 64.71% of the companies listed in the same industry.
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 | 17.41 | ||
| EV/EBITDA | 13.73 |
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)1.53
PEG (5Y)5.17
EPS Next 2Y11.31%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.45%.
QSR's Dividend Yield is a higher than the industry average which is at 4.45.
QSR's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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.
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
100.78% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP100.78%
EPS Next 2Y11.31%
EPS Next 3Y11.48%
TSX:QSR (3/7/2025, 7:00:00 PM)
100.01
+3.5 (+3.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.81%
Inst Owner ChangeN/A
Ins Owners1.15%
Ins Owner ChangeN/A
Market Cap32.50B
Analysts78
Price Target115.98 (15.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend3.29
Dividend Growth(5Y)-6.89%
DP100.78%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.63%
Min EPS beat(2)-3.26%
Max EPS beat(2)2.01%
EPS beat(4)2
Avg EPS beat(4)-0.51%
Min EPS beat(4)-3.26%
Max EPS beat(4)2.01%
EPS beat(8)6
Avg EPS beat(8)3.67%
EPS beat(12)9
Avg EPS beat(12)4.78%
EPS beat(16)13
Avg EPS beat(16)6.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)0%
Revenue beat(4)2
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)1.76%
Revenue beat(8)4
Avg Revenue beat(8)-0.11%
Revenue beat(12)8
Avg Revenue beat(12)0.64%
Revenue beat(16)10
Avg Revenue beat(16)0.68%
PT rev (1m)-1.99%
PT rev (3m)-0.49%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)-4.21%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 18.42 | ||
| P/S | 2.7 | ||
| P/FCF | 17.41 | ||
| P/OCF | 15.08 | ||
| P/B | 7.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)4.77
EY4.77%
EPS(NY)5.43
Fwd EY5.43%
FCF(TTM)5.74
FCFY5.74%
OCF(TTM)6.63
OCFY6.63%
SpS37.09
BVpS13.72
TBVpS-60.87
PEG (NY)1.53
PEG (5Y)5.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 32.83% | ||
| ROCE | 10.36% | ||
| ROIC | 8.27% | ||
| ROICexc | 8.8% | ||
| ROICexgc | 45.75% | ||
| OM | 27.43% | ||
| PM (TTM) | 12.15% | ||
| GM | 58.32% | ||
| FCFM | 15.49% |
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8%
ROIC(5y)7.42%
ROICexc(3y)8.48%
ROICexc(5y)7.89%
ROICexgc(3y)51.98%
ROICexgc(5y)49.84%
ROCE(3y)10.01%
ROCE(5y)9.29%
ROICexcg growth 3Y-4.96%
ROICexcg growth 5Y-3.8%
ROICexc growth 3Y5.42%
ROICexc growth 5Y0.81%
OM growth 3Y-6.19%
OM growth 5Y-5.34%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.56%
GM growth 5Y-2.9%
F-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.42 | ||
| Debt/FCF | 10.72 | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 76.14% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 2.94 | ||
| Cash Conversion | 58.48% | ||
| Profit Quality | 127.52% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.38 |
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)2.46%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%8%
EPS Next Y13.71%
EPS Next 2Y11.31%
EPS Next 3Y11.48%
EPS Next 5Y10.57%
Revenue 1Y (TTM)19.71%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%26.15%
Revenue Next Year9.16%
Revenue Next 2Y6.29%
Revenue Next 3Y5.73%
Revenue Next 5Y5.05%
EBIT growth 1Y8.88%
EBIT growth 3Y6.54%
EBIT growth 5Y2.65%
EBIT Next Year25.55%
EBIT Next 3Y11.76%
EBIT Next 5Y9.29%
FCF growth 1Y8.23%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y13.61%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%