Restaurant Brands International (QSR) AI Stock Analysis

• Market Cap: $39.50B
• Dividend Yield: 3.77%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.45
• Revenue Growth: 21.63%
• EPS Growth: -14.75%
• Country: CA
• Employees: 37,600
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Restaurants
• EPS (TTM): 1.16
• Shares Outstanding: 324,984,650
• 10 Day Avg. Volume: 1,358,883
• 30 Day Avg. Volume: 1,331,913
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.60
• Price to Cash Flow (P/CF): 15.70
• P/FCF Ratio: 13.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $106.58
• Price Target Upside: 22.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

Restaurant Brands International scores well on financial performance, demonstrating strong profitability and revenue growth, albeit with high leverage. The technical analysis suggests a bearish short-term outlook, while valuation metrics are reasonable. The earnings call conveyed a positive sentiment overall, despite some challenges. These factors cumulatively contribute to a moderate overall stock score.

Positive Factors

Risk Assessment

Bulls believe risks to the story are priced in, and so long as 8% AOI growth is achieved than shares are attractive on a total return basis.

Track Record and Growth Potential

Bulls believe Tim Hortons' successful track record will persist, while Burger King has low-hanging fruit to avoid missing Consensus Metrix same store sales.

Negative Factors

Canadian Market Risks

New Canadian consumer headwinds, such as immigration reform and tariffs, pose risks to Tim's successful track record.

Competitive Challenges

Burger King's same-store sales forecast has been lowered due to a competitive resurgence and challenges in maintaining growth.

Geopolitical and Development Delays

A delay is anticipated in returning to 5%+ net restaurant growth, with geopolitical challenges and disputes affecting development timelines.

Market Value Perception

Deteriorating value perceptions for Burger King compared to peers could impact its performance in a competitive quick service industry.

Restaurant Brands International Business Overview & Revenue Model

Company Description

Restaurant Brands International (QSR) is a global leader in the quick-service restaurant industry, operating several iconic brands including Burger King, Tim Hortons, Popeyes, and Firehouse Subs. The company specializes in franchising, owning, and managing fast-food restaurants, offering a diverse range of products such as burgers, coffee, chicken, and sandwiches to millions of customers worldwide.

How the Company Makes Money

Restaurant Brands International makes money primarily through its franchising model. The company generates revenue from franchise fees, royalties based on a percentage of sales, and sales of supplies to franchisees. Additionally, RBI owns and operates a number of restaurants from which it directly earns sales revenue. The company also benefits from strategic partnerships and marketing initiatives that enhance brand visibility and customer engagement. Significant factors contributing to its earnings include menu innovation, global expansion, and cost management strategies to improve operational efficiency.

Restaurant Brands International Financial Statement Overview

Summary

Restaurant Brands International exhibits strong financial performance with robust profitability and revenue growth. High leverage is a concern, but efficient use of equity and consistent cash flow generation mitigate risks.

Income Statement

Restaurant Brands International demonstrates strong profitability with a high gross profit margin of 36% and a solid EBIT margin of 28.8%. The company shows robust revenue growth, increasing by 19.7% from 2023 to 2024. However, the net profit margin decreased to 12.1% due to a reduction in net income.

Balance Sheet

The company's balance sheet indicates high leverage with a debt-to-equity ratio of 5.13, suggesting reliance on debt financing. Despite this, the company's equity ratio is relatively low at 12.6%, indicating limited equity financing. The ROE is strong at 32.8%, reflecting efficient use of equity.

Cash Flow

Cash flow analysis is positive, with a stable operating cash flow and a free cash flow to net income ratio of 1.28, indicating healthy cash generation relative to earnings. The free cash flow growth rate is moderate at 8.3%, showing consistent cash flow performance.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.41B	7.02B	6.50B	5.74B	4.97B
	Gross Profit
3.02B	2.80B	2.60B	2.40B	2.83B
	EBIT
2.42B	2.05B	1.90B	1.88B	1.42B
	EBITDA
2.66B	2.24B	2.21B	2.13B	1.78B
	Net Income Common Stockholders
1.02B	1.19B	1.48B	1.25B	750.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.33B	1.14B	1.18B	1.09B	1.56B
	Total Assets
24.63B	23.39B	22.75B	23.25B	22.78B
	Total Debt
15.96B	14.52B	14.30B	14.41B	13.90B
	Net Debt
14.62B	13.38B	13.13B	13.33B	12.35B
	Total Liabilities
19.79B	18.66B	18.48B	19.39B	19.06B
	Stockholders Equity
3.11B	2.87B	2.50B	2.24B	2.17B
Cash Flow		Free Cash Flow
1.30B	1.20B	1.39B	1.62B	804.00M
	Operating Cash Flow
1.50B	1.32B	1.49B	1.73B	921.00M
	Investing Cash Flow
-660.00M	11.00M	-64.00M	-1.10B	-79.00M
	Financing Cash Flow
-625.00M	-1.37B	-1.31B	-1.09B	-821.00M

Restaurant Brands International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 87.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QSR, the sentiment is Negative. The current price of 87.17 is below the 20-day moving average (MA) of 89.82, below the 50-day MA of 92.25, and below the 200-day MA of 93.14, indicating a bearish trend. The MACD of -1.87 indicates Positive momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 59.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QSR.

Restaurant Brands International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PZA	77 Outperform	$467.96M	14.93	10.51%	6.59%	-1.02%	-1.76%
QSR	74 Outperform	$39.50B	20.08	34.17%	3.77%	21.63%	-14.75%
BPF.UN	74 Outperform		11.61	11.40%	7.14%	0.64%	8.65%
KEG.UN	67 Neutral		18.95	8.07%	8.13%	-2.67%	-66.51%
MTY	65 Neutral	$910.32M	128.56	1.11%	2.77%	0.33%	-92.77%
Sector *	60 Neutral	$6.86B	11.61	3.16%	4.15%	2.41%	-21.45%

Restaurant Brands International Corporate Events

Restaurant Brands International Reports Strong 2024 Financial Results

Restaurant Brands International Inc. reported its financial results for the full year and fourth quarter of 2024, showcasing a global system-wide sales growth of 5.6% in Q4 and 5.4% for the year. The company’s income from operations grew by 17.9% year-over-year, with a return of approximately $1.0 billion to shareholders in 2024. As part of its strategy, RBI is committed to thoughtful marketing, operational improvements, and modern imaging to drive long-term growth and enhance shareholder value.