RESTAURANT BRANDS INTERN (QSR.CA) Stock Fundamental Analysis
Canada - TSX:QSR - CA76131D1033 - Common Stock
87.89 CAD
+1.1 (+1.27%)
QSR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Hotels, Restaurants & Leisure industry. QSR has an excellent profitability rating, but there are 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
QSR had positive earnings in the past year.
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
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.
Looking at the Return On Equity, with a value of 25.90%, QSR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.19%, QSR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QSR 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
The Profit Margin of QSR (9.43%) is better than 77.78% of its industry peers.
In the last couple of years the Profit Margin of QSR has remained more or less at the same level.
QSR has a better Operating Margin (25.82%) than 83.33% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
The Gross Margin of QSR (54.76%) is better than 72.22% of its industry peers.
QSR's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, QSR has more shares outstanding
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 1.32. This is a bad value and indicates that QSR is not financially healthy and even 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.
QSR has a debt to FCF ratio of 11.45. This is a negative value and a sign of low solvency as QSR would need 11.45 years to pay back of all of its debts.
QSR's Debt to FCF ratio of 11.45 is fine compared to the rest of the industry. QSR outperforms 61.11% of its industry peers.
QSR has a Debt/Equity ratio of 4.13. This is a high value indicating a heavy dependency on external financing.
QSR has a Debt to Equity ratio of 4.13. This is in the lower half of the industry: QSR underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.32 |
ROIC/WACC1
WACC8.2%
2.3 Liquidity
QSR has a Current Ratio of 1.01. 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 (1.01) is better than 66.67% of its industry peers.
QSR has a Quick Ratio of 1.01. 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 0.95, QSR is doing good in the industry, outperforming 61.11% of the companies in the same industry.
| 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.
QSR shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.80%.
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
Based on estimates for the next years, QSR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.77% on average per year.
QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
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
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 18.54, QSR is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as QSR.
QSR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.65 indicates a correct valuation of QSR.
72.22% of the companies in the same industry are more expensive than QSR, based on the Price/Forward Earnings ratio.
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
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 61.11% of the companies listed in the same industry.
| 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%. Purely for dividend investing, there may be better candidates out there.
QSR's Dividend Yield is a higher than the industry average which is at 4.20.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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
WACC8.2%
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)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%