Should You Be Adding Restaurant Brands International Limited Partnership (TSE:QSP.UN) To Your Watchlist Today?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Restaurant Brands International Limited Partnership (TSE:QSP.UN). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Restaurant Brands International Limited Partnership with the means to add long-term value to shareholders.

See our latest analysis for Restaurant Brands International Limited Partnership

How Fast Is Restaurant Brands International Limited Partnership Growing?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. Shareholders will be happy to know that Restaurant Brands International Limited Partnership's EPS has grown 18% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away satisfied.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. EBIT margins for Restaurant Brands International Limited Partnership remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 11% to US$6.8b. That's encouraging news for the company!

In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.

While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Restaurant Brands International Limited Partnership's balance sheet strength, before getting too excited.

Are Restaurant Brands International Limited Partnership Insiders Aligned With All Shareholders?

Owing to the size of Restaurant Brands International Limited Partnership, we wouldn't expect insiders to hold a significant proportion of the company. But we are reassured by the fact they have invested in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$708m. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.

Is Restaurant Brands International Limited Partnership Worth Keeping An Eye On?

You can't deny that Restaurant Brands International Limited Partnership has grown its earnings per share at a very impressive rate. That's attractive. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Restaurant Brands International Limited Partnership's continuing strength. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. We don't want to rain on the parade too much, but we did also find 3 warning signs for Restaurant Brands International Limited Partnership (2 make us uncomfortable!) that you need to be mindful of.

Although Restaurant Brands International Limited Partnership certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.