TSX:QSP.UN

Stock Analysis Report

Restaurant Brands International Limited Partnership

Executive Summary

Restaurant Brands International Limited Partnership operates and franchises quick service restaurants.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Restaurant Brands International Limited Partnership's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QSP.UN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

22.5%

QSP.UN

8.2%

CA Hospitality

6.4%

CA Market


1 Year Return

-35.3%

QSP.UN

-23.8%

CA Hospitality

-25.5%

CA Market

Return vs Industry: QSP.UN underperformed the Canadian Hospitality industry which returned -20.5% over the past year.

Return vs Market: QSP.UN underperformed the Canadian Market which returned -25.3% over the past year.


Shareholder returns

QSP.UNIndustryMarket
7 Day22.5%8.2%6.4%
30 Day-27.6%-28.4%-22.6%
90 Day-32.2%-35.1%-26.8%
1 Year-33.1%-35.3%-23.4%-23.8%-23.2%-25.5%
3 Year-17.6%-24.2%-12.2%-14.2%-15.7%-23.5%
5 Year34.2%20.2%-15.8%-17.8%-3.1%-17.4%

Price Volatility Vs. Market

How volatile is Restaurant Brands International Limited Partnership's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Restaurant Brands International Limited Partnership undervalued compared to its fair value and its price relative to the market?

29.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QSP.UN (CA$56.33) is trading below our estimate of fair value (CA$81.54)

Significantly Below Fair Value: QSP.UN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QSP.UN is poor value based on its PE Ratio (14.3x) compared to the Hospitality industry average (10.4x).

PE vs Market: QSP.UN is poor value based on its PE Ratio (14.3x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate QSP.UN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QSP.UN is overvalued based on its PB Ratio (3.5x) compared to the CA Hospitality industry average (0.9x).

Future Growth

How is Restaurant Brands International Limited Partnership forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.8%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Restaurant Brands International Limited Partnership has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Restaurant Brands International Limited Partnership performed over the past 5 years?

48.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QSP.UN has high quality earnings.

Growing Profit Margin: QSP.UN's current net profit margins (19.8%) are lower than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: QSP.UN has become profitable over the past 5 years, growing earnings by 48.7% per year.

Accelerating Growth: QSP.UN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: QSP.UN had negative earnings growth (-3%) over the past year, making it difficult to compare to the Hospitality industry average (-4.2%).


Return on Equity

High ROE: Whilst QSP.UN's Return on Equity (26.09%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Restaurant Brands International Limited Partnership's financial position?


Financial Position Analysis

Short Term Liabilities: QSP.UN's short term assets ($2.2B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: QSP.UN's short term assets ($2.2B) do not cover its long term liabilities ($16.4B).


Debt to Equity History and Analysis

Debt Level: QSP.UN's debt to equity ratio (281.9%) is considered high.

Reducing Debt: QSP.UN's debt to equity ratio has increased from 130.5% to 281.9% over the past 5 years.

Debt Coverage: QSP.UN's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: QSP.UN's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: QSP.UN has a low level of unsold assets or inventory.

Debt Coverage by Assets: QSP.UN's debt is not covered by short term assets (assets are 0.2x debt).

Dividend

What is Restaurant Brands International Limited Partnership's current dividend yield, its reliability and sustainability?

5.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QSP.UN's dividend (5.2%) is higher than the bottom 25% of dividend payers in the Canadian market (2.75%).

High Dividend: QSP.UN's dividend (5.2%) is low compared to the top 25% of dividend payers in the Canadian market (8.79%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, QSP.UN has been paying a dividend for less than 10 years.

Growing Dividend: QSP.UN's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.4%), QSP.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Jos Cil (49yo)

1.17s

Tenure

US$15,330,257

Compensation

Mr. José E. Cil, also known as Jos, has been the Chief Executive Officer at Restaurant Brands International Inc., a General Partner of Restaurant Brands International Limited Partnership since January 23,  ...


CEO Compensation Analysis

Compensation vs Market: Jos's total compensation ($USD15.33M) is above average for companies of similar size in the Canadian market ($USD6.69M).

Compensation vs Earnings: Jos's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
José Cil
Chief Executive Officer of Restaurant Brands International Inc.1.17yrsUS$15.33m0.029% $6.0m
Matthew Dunnigan
Chief Financial Officer of Restaurant Brands International Inc.2.17yrsUS$2.04mno data
Joshua Kobza
Chief Operating Officer of Restaurant Brands International Inc1.17yrsUS$2.47m0.0015% $304.2k
Jacqueline Friesner
Chief Accounting Officer & Controller - Restaurant Brands International Inc.5.25yrsno data0.0025% $513.3k
Jill Granat
General Counsel & Corporate Secretary of Restaurant Brands Intl. Inc.5.25yrsno data0.014% $3.0m
Fernando Machado
Chief Marketing Officer of Restaurant Brands International Inc.no datano datano data
Duncan Stanley Fulton
Chief Corporate Officer of Restaurant Brands International Inc.1.17yrsno datano data
Elías Sesé
President of International Expansion - Restaurant Brands International Inc2.75yrsUS$4.52mno data
Axel Schwan
President of Tim Hortons Americas - Restaurant Brands International Inc.no datano data0.00069% $142.8k
Felipe Athayde
President of Popeyes Americas - Restaurant Brands International Inc.no datano datano data

2.2yrs

Average Tenure

45yo

Average Age

Experienced Management: QSP.UN's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlos da Veiga Sicupira
Independent Director of Restaurant Brands International Inc.5.25yrsUS$140.00kno data
Roberto Moses Motta
Independent Director of Restaurant Brands International Inc5.25yrsUS$100.00kno data
Paul Fribourg
Independent Director of Restaurant Brands International Inc.5.25yrsUS$140.00kno data
Alexandre Behring
Co-Chairman of the Board of Restaurant Brands International Inc.5.25yrsUS$240.00kno data
Alexandre Van Damme
Independent Director of Restaurant Brands International Inc.5.25yrsUS$120.00k1.05% $218.1m
Marcello Caira
Vice Chairman of Restaurant Brands International Inc.5.25yrsUS$250.00kno data
Neil Golden
Independent Director of Restaurant Brands International Inc.3.75yrsUS$250.00kno data
Daniel Schwartz
Co-Chairman of the Board of Restaurant Brands International Inc.1.17yrsUS$18.78m0.038% $7.8m
Roberto Thompson Motta
Independent Director of Restaurant Brands International Inc5.25yrsUS$100.00kno data
Ali Hedayat
Independent Director of Restaurant Brands International Inc.3.67yrsUS$111.01kno data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Board: QSP.UN's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Restaurant Brands International Limited Partnership's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Restaurant Brands International Limited Partnership
  • Ticker: QSP.UN
  • Exchange: TSX
  • Founded: 1954
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$20.697b
  • Shares outstanding: 367.42m
  • Website: https://www.rbi.com

Number of Employees


Location

  • Restaurant Brands International Limited Partnership
  • 130 King Street West
  • Suite 300
  • Toronto
  • Ontario
  • M5X 1E1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QSP.UNTSX (The Toronto Stock Exchange)YesPartnership Exchangeable UnitsCACADDec 2014
RSTR.FOTCPK (Pink Sheets LLC)YesPartnership Exchangeable UnitsUSUSDDec 2014
0RTDB (Deutsche Boerse AG)YesPartnership Exchangeable UnitsDEEURDec 2014

Biography

Restaurant Brands International Limited Partnership operates and franchises quick service restaurants. The company operates through three segments: Tim Hortons, Burger King, and Popeyes. Its restaurants offer coffee and other beverages, and food products under the Tim Hortons brand name; hamburgers, chicken, specialty sandwiches, french fries, and soft drinks primarily under the Burger King brand; and chicken under the Popeyes brand name. As of December 31, 2019, the company owned or franchised a total of 4,932 Tim Hortons restaurants; 18,838 Burger King restaurants; and 3,316 Popeyes restaurants in approximately 100 countries and the United States. Restaurant Brands International Inc. serves as the general partner of the company. The company was formerly known as New Red Canada Limited Partnership and changed its name to Restaurant Brands International Limited Partnership in December 2014. The company was founded in 1954 and is headquartered in Toronto, Canada. Restaurant Brands International Limited Partnership is a subsidiary of Restaurant Brands International Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 01:46
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.