DB:0R6

Stock Analysis Report

Restaurant Brands International

Executive Summary

Restaurant Brands International Inc. owns, operates, and franchises quick service restaurants under the Tim Hortons (TH), Burger King (BK), and Popeyes (PLK) brand names.

Snowflake

Fundamentals

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0R6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

0R6

-0.3%

DE Hospitality

-0.5%

DE Market


1 Year Return

28.9%

0R6

-9.2%

DE Hospitality

12.2%

DE Market

Return vs Industry: 0R6 exceeded the German Hospitality industry which returned -9.2% over the past year.

Return vs Market: 0R6 exceeded the German Market which returned 12.2% over the past year.


Shareholder returns

0R6IndustryMarket
7 Day-2.5%-0.3%-0.5%
30 Day-4.0%2.1%4.4%
90 Day-12.1%33.3%11.1%
1 Year33.0%28.9%-3.0%-9.2%15.8%12.2%
3 Year44.6%34.6%11.7%-3.4%24.7%13.8%
5 Yearn/a19.4%-3.6%35.0%16.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

26.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0R6 (€59.5) is trading above our estimate of fair value (€55.95)

Significantly Below Fair Value: 0R6 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0R6 is good value based on its PE Ratio (26.4x) compared to the Hospitality industry average (31.4x).

PE vs Market: 0R6 is poor value based on its PE Ratio (26.4x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: 0R6 is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: 0R6 is overvalued based on its PB Ratio (8.4x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is Restaurant Brands International forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0R6's forecast earnings growth (10% per year) is above the savings rate (0.2%).

Earnings vs Market: 0R6's earnings (10% per year) are forecast to grow slower than the German market (12.9% per year).

High Growth Earnings: 0R6's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0R6's revenue (4.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: 0R6's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0R6's Return on Equity is forecast to be very high in 3 years time (55.2%).


Next Steps

Past Performance

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

50.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0R6 has high quality earnings.

Growing Profit Margin: 0R6's current net profit margins (11.6%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: 0R6's earnings have grown significantly by 50.7% per year over the past 5 years.

Accelerating Growth: 0R6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0R6 had negative earnings growth (-24%) over the past year, making it difficult to compare to the Hospitality industry average (-36.8%).


Return on Equity

High ROE: Whilst 0R6's Return on Equity (28.43%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Restaurant Brands International's financial position?


Financial Position Analysis

Short Term Liabilities: 0R6's short term assets ($2.4B) exceeds its short term liabilities ($2.2B)

Long Term Liabilities: 0R6's short term assets ($2.4B) do not cover its long term liabilities (16.0B)


Debt to Equity History and Analysis

Debt Level: 0R6's debt to equity ratio (308.6%) is considered high.

Reducing Debt: 0R6's debt to equity ratio has increased from 208.2% to 308.6% over the past 5 years.

Debt Coverage: 0R6's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: 0R6's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: 0R6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0R6's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

3.03%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Restaurant Brands International before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.3%markettop25%3.7%industryaverage5.8%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: 0R6's dividend (3.03%) is higher than the bottom 25% of dividend payers in the German market (1.35%).

High Dividend: 0R6's dividend (3.03%) is low compared to the top 25% of dividend payers in the German market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0R6 has been paying a dividend for less than 10 years.

Growing Dividend: 0R6's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.8%), 0R6's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0R6's dividends in 3 years are forecast to be covered by earnings (75.2% payout ratio).


Next Steps

Management

What is the CEO of Restaurant Brands International's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Jos Cil (49yo)

0.8yrs

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 ($USD15.33M) is above average for companies of similar size in the German market ($USD4.61M).

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


Management Age and Tenure

4.8yrs

Average Tenure

43.5yo

Average Age

Experienced Management: 0R6's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

57yo

Average Age

Experienced Board: 0R6's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: 0R6 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$9,668,14201 Nov 19
Alexandre Macedo
EntityIndividual
Role
Unit President
President of Tim Hortons
Shares166,834
Max PriceUS$58.51
SellUS$1,052,18629 Aug 19
Ali Hedayat
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$70.15
SellUS$26,714,39929 Aug 19
Continental Grain Company Corp.
EntityCompany
Shares384,024
Max PriceUS$70.40
SellUS$33,964,55128 Aug 19
Paul Fribourg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares488,024
Max PriceUS$70.40
BuyUS$2,570,59020 Feb 19
Alexandre Macedo
EntityIndividual
Role
Unit President
President of Tim Hortons
Shares45,000
Max PriceUS$57.12

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Management Team

  • Jos Cil (49yo)

    Chief Executive Officer

    • Tenure: 0.8yrs
    • Compensation: US$15.33m
  • Jill Granat (53yo)

    General Counsel & Corporate Secretary

    • Tenure: 4.9yrs
    • Compensation: US$2.40m
  • Jacqueline Friesner (46yo)

    Controller & Chief Accounting Officer

    • Tenure: 4.9yrs
  • Patrick McGrade

    Chief Corporate Affairs Officer

    • Tenure: 4.7yrs
  • Josh Kobza (32yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: US$2.47m
  • Alex Macedo (41yo)

    President of Tim Hortons

    • Tenure: 4.9yrs
    • Compensation: US$14.38m
  • Cara Piggot

    Global Head of Quality Assurance

    • Tenure: 4.9yrs
  • Tammy Martin

    Head of Marketing - Tim Hortons - Canada

    • Tenure: 0yrs
  • Andrea John

    Head of Finance - Tim Hortons - Canada

    • Tenure: 0yrs
  • Matt Dunnigan (35yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: US$2.04m

Board Members

  • Carlos da Veiga Sicupira (71yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$140.00k
  • Roberto Moses Motta (61yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$100.00k
  • Paul Fribourg (65yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$140.00k
  • Alexandre Behring (52yo)

    Co-Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$240.00k
  • Alexandre Van Damme (57yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$120.00k
  • Marc Caira (65yo)

    Vice Chairman of the Board

    • Tenure: 4.9yrs
    • Compensation: US$250.00k
  • David Clanachan (57yo)

    Chairman of RBI Canada

    • Tenure: 3.3yrs
  • Neil Golden (57yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$250.00k
  • Daniel Schwartz (38yo)

    Co-Chairman

    • Tenure: 0.8yrs
    • Compensation: US$18.78m
  • Ali Hedayat (43yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$111.01k

Company Information

Restaurant Brands International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Restaurant Brands International Inc.
  • Ticker: 0R6
  • Exchange: DB
  • Founded: 1954
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$30.627b
  • Market Cap: US$17.773b
  • Listing Market Cap: US$27.641b
  • Shares outstanding: 463.63m
  • Website: https://www.rbi.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QSR NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 2014
QSRTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2014
QSRNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2014
0R6DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2014
0VFALSE (London Stock Exchange)YesCommon SharesGBCADDec 2014

Biography

Restaurant Brands International Inc. owns, operates, and franchises quick service restaurants under the Tim Hortons (TH), Burger King (BK), and Popeyes (PLK) brand names. The company operates through three ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 21:33
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.