RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
NYSE:QSR - New York Stock Exchange, Inc. - CA76131D1033 - Common Stock
Taking everything into account, QSR scores 5 out of 10 in our fundamental rating. QSR was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. QSR scores excellent on profitability, 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.
In the past year QSR had a positive cash flow from operations.
QSR had positive earnings in each of the past 5 years.
In the past 5 years QSR always reported a positive cash flow from operatings.
1.2 Ratios
QSR has a Return On Assets of 5.07%. This is in the better half of the industry: QSR outperforms 68.70% of its industry peers.
The Return On Equity of QSR (39.25%) is better than 91.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.75%, QSR is in line with its industry, outperforming 59.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QSR is below the industry average of 10.54%.
The last Return On Invested Capital (7.75%) for QSR is above the 3 year average (7.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 39.25% | ||
| ROIC | 7.75% |
ROA(3y)4.37%
ROA(5y)3.63%
ROE(3y)39.77%
ROE(5y)33.51%
ROIC(3y)7.53%
ROIC(5y)7.25%
1.3 Margins
The Profit Margin of QSR (16.02%) is better than 87.79% of its industry peers.
QSR's Profit Margin has improved in the last couple of years.
QSR has a Operating Margin of 28.30%. This is amongst the best in the industry. QSR outperforms 94.66% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
The Gross Margin of QSR (60.86%) is better than 72.52% of its industry peers.
In the last couple of years the Gross Margin of QSR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.3% | ||
| PM (TTM) | 16.02% | ||
| GM | 60.86% |
OM growth 3Y-1.85%
OM growth 5Y-3.6%
PM growth 3Y20.1%
PM growth 5Y8.21%
GM growth 3Y-1.08%
GM growth 5Y-0.19%
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.
The number of shares outstanding for QSR has been increased compared to 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 an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that QSR is in the distress zone and has some risk of bankruptcy.
QSR's Altman-Z score of 1.25 is in line compared to the rest of the industry. QSR outperforms 42.75% of its industry peers.
QSR has a debt to FCF ratio of 11.17. This is a negative value and a sign of low solvency as QSR would need 11.17 years to pay back of all of its debts.
With a Debt to FCF ratio value of 11.17, QSR perfoms like the industry average, outperforming 59.54% of the companies in the same industry.
A Debt/Equity ratio of 4.29 is on the high side and indicates that QSR has dependencies on debt financing.
QSR has a Debt to Equity ratio (4.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 11.17 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.1
WACC7.02%
2.3 Liquidity
A Current Ratio of 1.02 indicates that QSR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, QSR is in line with its industry, outperforming 58.78% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that QSR may have some problems paying its short term obligations.
The Quick ratio of QSR (0.94) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.55% over the past year.
Measured over the past 5 years, QSR shows a small growth in Earnings Per Share. The EPS has been growing by 4.32% on average per year.
Looking at the last year, QSR shows a quite strong growth in Revenue. The Revenue has grown by 15.08% in the last year.
The Revenue has been growing slightly by 5.56% on average over the past years.
EPS 1Y (TTM)1.55%
EPS 3Y17.18%
EPS 5Y4.32%
EPS Q2Q%3.33%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y12.23%
Revenue growth 5Y5.56%
Sales Q2Q%24.71%
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 11.56% on average per year.
Based on estimates for the next years, QSR will show a quite strong growth in Revenue. The Revenue will grow by 8.04% on average per year.
EPS Next Y3.81%
EPS Next 2Y8.6%
EPS Next 3Y8.97%
EPS Next 5Y11.56%
Revenue Next Year19.9%
Revenue Next 2Y15.22%
Revenue Next 3Y11.58%
Revenue Next 5Y8.04%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.57, QSR is valued on the expensive side.
QSR's Price/Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 74.05% of the companies in the same industry.
When comparing the Price/Earnings ratio of QSR to the average of the S&P500 Index (28.29), we can say QSR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.85, QSR is valued correctly.
QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 77.10% of the companies in the same industry.
QSR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 15.85 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA is on the same level as the industry average.
82.44% 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 | 15.68 | ||
| EV/EBITDA | 13.1 |
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)4.87
PEG (5Y)4.3
EPS Next 2Y8.6%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.37%, QSR has a reasonable but not impressive dividend return.
QSR's Dividend Yield is rather good when compared to the industry average which is at 2.98. QSR pays more dividend than 87.79% of the companies in the same industry.
QSR's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of QSR decreases each year by -2.18%.
QSR has paid a dividend for at least 10 years, which is 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)-2.18%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
QSR pays out 80.00% of its income as dividend. This is not a sustainable payout ratio.
DP80%
EPS Next 2Y8.6%
EPS Next 3Y8.97%
RESTAURANT BRANDS INTERN
NYSE:QSR (1/21/2025, 8:22:56 PM)
After market: 60.74 0 (0%)60.74
+0.26 (+0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners88.77%
Inst Owner Change-0.17%
Ins Owners1.11%
Ins Owner Change0.64%
Market Cap19.66B
Analysts78.1
Price Target83.27 (37.09%)
Short Float %2.16%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend2.63
Dividend Growth(5Y)-2.18%
DP80%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.29%
Min EPS beat(2)-3.26%
Max EPS beat(2)-1.32%
EPS beat(4)2
Avg EPS beat(4)-0.7%
Min EPS beat(4)-3.26%
Max EPS beat(4)1.26%
EPS beat(8)5
Avg EPS beat(8)3%
EPS beat(12)9
Avg EPS beat(12)5.06%
EPS beat(16)12
Avg EPS beat(16)4.74%
Revenue beat(2)1
Avg Revenue beat(2)0.04%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)1.76%
Revenue beat(4)2
Avg Revenue beat(4)0.23%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)1.76%
Revenue beat(8)5
Avg Revenue beat(8)-0.07%
Revenue beat(12)9
Avg Revenue beat(12)0.79%
Revenue beat(16)10
Avg Revenue beat(16)0.66%
PT rev (1m)0.08%
PT rev (3m)-3.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.54%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 15.85 | ||
| P/S | 2.48 | ||
| P/FCF | 15.68 | ||
| P/OCF | 13.8 | ||
| P/B | 6.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.1 |
EPS(TTM)3.27
EY5.38%
EPS(NY)3.83
Fwd EY6.31%
FCF(TTM)3.87
FCFY6.38%
OCF(TTM)4.4
OCFY7.25%
SpS24.5
BVpS10
TBVpS-44.17
PEG (NY)4.87
PEG (5Y)4.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 39.25% | ||
| ROCE | 9.81% | ||
| ROIC | 7.75% | ||
| ROICexc | 8.17% | ||
| ROICexgc | 42.69% | ||
| OM | 28.3% | ||
| PM (TTM) | 16.02% | ||
| GM | 60.86% | ||
| FCFM | 15.81% |
ROA(3y)4.37%
ROA(5y)3.63%
ROE(3y)39.77%
ROE(5y)33.51%
ROIC(3y)7.53%
ROIC(5y)7.25%
ROICexc(3y)7.96%
ROICexc(5y)7.73%
ROICexgc(3y)53.89%
ROICexgc(5y)51.22%
ROCE(3y)9.54%
ROCE(5y)9.18%
ROICexcg growth 3Y9.58%
ROICexcg growth 5Y-8.74%
ROICexc growth 3Y9.24%
ROICexc growth 5Y-0.66%
OM growth 3Y-1.85%
OM growth 5Y-3.6%
PM growth 3Y20.1%
PM growth 5Y8.21%
GM growth 3Y-1.08%
GM growth 5Y-0.19%
F-Score7
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 11.17 | ||
| Debt/EBITDA | 5.6 | ||
| Cap/Depr | 72.46% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 57.46% | ||
| Profit Quality | 98.74% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.25 |
F-Score7
WACC7.02%
ROIC/WACC1.1
Cap/Depr(3y)56.07%
Cap/Depr(5y)52.72%
Cap/Sales(3y)1.7%
Cap/Sales(5y)1.71%
Profit Quality(3y)144.1%
Profit Quality(5y)163.53%
High Growth Momentum
Growth
EPS 1Y (TTM)1.55%
EPS 3Y17.18%
EPS 5Y4.32%
EPS Q2Q%3.33%
EPS Next Y3.81%
EPS Next 2Y8.6%
EPS Next 3Y8.97%
EPS Next 5Y11.56%
Revenue 1Y (TTM)15.08%
Revenue growth 3Y12.23%
Revenue growth 5Y5.56%
Sales Q2Q%24.71%
Revenue Next Year19.9%
Revenue Next 2Y15.22%
Revenue Next 3Y11.58%
Revenue Next 5Y8.04%
EBIT growth 1Y6.91%
EBIT growth 3Y10.15%
EBIT growth 5Y1.77%
EBIT Next Year24.65%
EBIT Next 3Y13.33%
EBIT Next 5Y9.81%
FCF growth 1Y-13.52%
FCF growth 3Y14.38%
FCF growth 5Y2.2%
OCF growth 1Y-7.35%
OCF growth 3Y12.83%
OCF growth 5Y2.58%