RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - TSX:QSR - CA76131D1033 - Common Stock
87.89 CAD
+1.1 (+1.27%)
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.
Each year in the past 5 years QSR has 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 3.34%, QSR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Equity value of 25.90%, QSR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
QSR has a Return On Invested Capital of 8.19%. This is amongst the best in the industry. QSR outperforms 83.33% of its industry peers.
QSR had an Average Return On Invested Capital over the past 3 years of 8.03%. This is in line with the industry average of 6.35%.
The last Return On Invested Capital (8.19%) for QSR is above the 3 year average (8.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 25.9% | ||
| ROIC | 8.19% |
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 9.43%. This is in the better half of the industry: QSR outperforms 77.78% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
QSR's Operating Margin of 25.82% is amongst the best of the industry. QSR outperforms 83.33% 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 54.76%, QSR is in the better half of the industry, outperforming 72.22% 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 | 25.82% | ||
| PM (TTM) | 9.43% | ||
| GM | 54.76% |
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 below the Cost of Capital (WACC), so QSR is destroying 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.
Compared to 1 year ago, QSR has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that QSR is in the distress zone and has some risk of bankruptcy.
QSR has a Altman-Z score of 1.32. This is in the better half of the industry: QSR outperforms 66.67% of its industry peers.
The Debt to FCF ratio of QSR is 11.45, which is on the high side as it means it would take QSR, 11.45 years of fcf income to pay off all of its debts.
QSR has a Debt to FCF ratio of 11.45. This is in the better half of the industry: QSR outperforms 61.11% of its industry peers.
QSR has a Debt/Equity ratio of 4.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of QSR (4.13) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.98
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.01 indicates that QSR should not have too much problems paying its short term obligations.
QSR has a better Current ratio (1.01) than 66.67% of its industry peers.
A Quick Ratio of 0.95 indicates that QSR may have some problems paying its short term obligations.
QSR has a better Quick ratio (0.95) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.86%.
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 21.80% in the past year. This is a very strong growth!
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)5.86%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%9.3%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
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 8.77% yearly.
Based on estimates for the next years, QSR will show a small growth in Revenue. The Revenue will grow by 4.63% on average per year.
EPS Next Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue Next Year10.67%
Revenue Next 2Y7.24%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
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
A Price/Earnings ratio of 18.54 indicates a rather expensive valuation of QSR.
The rest of the industry has a similar Price/Earnings ratio as QSR.
QSR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
A Price/Forward Earnings ratio of 15.65 indicates a correct valuation of QSR.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of QSR to the average of the S&P500 Index (22.86), we can say QSR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 15.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QSR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
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 | 17.14 | ||
| EV/EBITDA | 12.72 |
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)1.63
PEG (5Y)4.57
EPS Next 2Y10.49%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.94%.
Compared to an average industry Dividend Yield of 4.19, QSR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, QSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 124.21% of its income as dividend. This is not a sustainable payout ratio.
DP124.21%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
TSX:QSR (9/19/2025, 7:00:00 PM)
87.89
+1.1 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.85%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap28.81B
Analysts77.5
Price Target108.66 (23.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend3.17
Dividend Growth(5Y)-6.89%
DP124.21%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.42%
Min EPS beat(2)-5.14%
Max EPS beat(2)-3.69%
EPS beat(4)1
Avg EPS beat(4)-2.52%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)4
Avg EPS beat(8)-0.68%
EPS beat(12)7
Avg EPS beat(12)2.98%
EPS beat(16)11
Avg EPS beat(16)3.51%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)2.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.14%
Revenue beat(12)7
Avg Revenue beat(12)0.26%
Revenue beat(16)10
Avg Revenue beat(16)0.48%
PT rev (1m)1.63%
PT rev (3m)0.11%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 15.65 | ||
| P/S | 2.29 | ||
| P/FCF | 17.14 | ||
| P/OCF | 14.37 | ||
| P/B | 6.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.72 |
EPS(TTM)4.74
EY5.39%
EPS(NY)5.62
Fwd EY6.39%
FCF(TTM)5.13
FCFY5.84%
OCF(TTM)6.12
OCFY6.96%
SpS38.38
BVpS13.98
TBVpS-60.11
PEG (NY)1.63
PEG (5Y)4.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 25.9% | ||
| ROCE | 10.25% | ||
| ROIC | 8.19% | ||
| ROICexc | 8.57% | ||
| ROICexgc | 43.39% | ||
| OM | 25.82% | ||
| PM (TTM) | 9.43% | ||
| GM | 54.76% | ||
| FCFM | 13.36% |
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%
ROICexcg growth 3Y-4.66%
ROICexcg 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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Debt/EBITDA | 5.16 | ||
| Cap/Depr | 76.97% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 54.65% | ||
| Profit Quality | 141.68% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.32 |
F-Score6
WACC8.36%
ROIC/WACC0.98
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)5.86%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%9.3%
EPS Next Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
Revenue Next Year10.67%
Revenue Next 2Y7.24%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
EBIT growth 1Y5.95%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year26.09%
EBIT Next 3Y13.39%
EBIT Next 5Y9.29%
FCF growth 1Y2.44%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y10.93%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%