LSE:0VFA

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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 Analysis

High growth potential with proven 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: 0VFA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

0VFA

3.0%

GB Hospitality

2.8%

GB Market


1 Year Return

n/a

0VFA

-27.1%

GB Hospitality

-11.0%

GB Market

Return vs Industry: Insufficient data to determine how 0VFA performed against the UK Hospitality industry.

Return vs Market: Insufficient data to determine how 0VFA performed against the UK Market.


Shareholder returns

0VFAIndustryMarket
7 Day0%3.0%2.8%
30 Day0%1.7%8.4%
90 Dayn/a-22.1%-7.9%
1 Yearn/a-24.6%-27.1%-6.7%-11.0%
3 Yearn/a-20.6%-29.2%-3.7%-15.4%
5 Yearn/a0.5%-17.5%15.4%-10.4%

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?

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0VFA (CA$43.46) is trading below our estimate of fair value (CA$45)

Significantly Below Fair Value: 0VFA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 0VFA is poor value based on its PE Ratio (24.5x) compared to the Hospitality industry average (18x).

PE vs Market: 0VFA is poor value based on its PE Ratio (24.5x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: 0VFA is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 0VFA is overvalued based on its PB Ratio (7.8x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is Restaurant Brands International forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0VFA's forecast earnings growth (21.7% per year) is above the savings rate (1.2%).

Earnings vs Market: 0VFA's earnings (21.7% per year) are forecast to grow faster than the UK market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0VFA's revenue (7% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: 0VFA's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0VFA's Return on Equity is forecast to be very high in 3 years time (53.8%).


Next Steps

Past Performance

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

45.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0VFA has high quality earnings.

Growing Profit Margin: 0VFA's current net profit margins (11.7%) are higher than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: 0VFA has become profitable over the past 5 years, growing earnings by 45.3% per year.

Accelerating Growth: 0VFA's earnings growth over the past year (8.9%) is below its 5-year average (45.3% per year).

Earnings vs Industry: 0VFA earnings growth over the past year (8.9%) exceeded the Hospitality industry -10.9%.


Return on Equity

High ROE: Whilst 0VFA's Return on Equity (29.02%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Restaurant Brands International's financial position?


Financial Position Analysis

Short Term Liabilities: 0VFA's short term assets ($3.1B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: 0VFA's short term assets ($3.1B) do not cover its long term liabilities ($17.4B).


Debt to Equity History and Analysis

Debt Level: 0VFA's debt to equity ratio (356.1%) is considered high.

Reducing Debt: 0VFA's debt to equity ratio has increased from 133.4% to 356.1% over the past 5 years.

Debt Coverage: 0VFA's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: 0VFA's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

3.64%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0VFA's dividend (3.64%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: 0VFA's dividend (3.64%) is low compared to the top 25% of dividend payers in the UK market (5.56%).


Stability and Growth of Payments

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

Growing Dividend: 0VFA'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 (86.7%), 0VFA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0VFA's dividends in 3 years are forecast to be covered by earnings (76.7% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Jos Cil (49yo)

1.42yrs

Tenure

US$20,711,740

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 ($USD20.71M) is above average for companies of similar size in the UK market ($USD4.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
José Cil
Chief Executive Officer1.42yrsUS$20.71m0.23% $82.1m
Matthew Dunnigan
Chief Financial Officer2.42yrsUS$7.87m0.0024% $852.2k
Joshua Kobza
Chief Operating Officer1.42yrsUS$17.09m0.083% $29.2m
Jill Granat
General Counsel & Corporate Secretary5.5yrsUS$4.89m0.098% $34.2m
Jacqueline Friesner
Controller & Chief Accounting Officer5.5yrsno data0.034% $11.8m
Fernando Machado
Chief Marketing Officer1.42yrsno data0.0044% $1.5m
Axel Schwan
President of Tim Hortons for Canada and the US0.67yrno data0.0051% $1.8m
Cara Piggot
Global Head of Quality Assurance5.5yrsno datano data
Tammy Martin
Head of Marketing - Tim Hortons - Canadano datano datano data
Patrick McGrade
Chief Corporate Affairs Officer5.25yrsno datano data

2.4yrs

Average Tenure

45yo

Average Age

Experienced Management: 0VFA's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlos da Veiga Sicupira
Independent Director5.5yrsUS$140.00k0.0038% $1.3m
Roberto Moses Motta
Independent Director5.5yrsUS$100.00k0.0073% $2.6m
Paul Fribourg
Independent Director5.5yrsUS$140.00k0.038% $13.4m
Alexandre Behring
Independent Co-Chairman of the Board1.42yrsUS$240.00kno data
Alexandre Van Damme
Independent Director5.5yrsUS$120.00k1.81% $633.2m
Marcello Caira
Vice Chairman of the Board5.5yrsUS$150.00k0.022% $7.9m
David Clanachan
Chairman of RBI Canada3.83yrsno datano data
Neil Golden
Independent Director4yrsUS$250.00kno data
Daniel Schwartz
Co-Chairman1.42yrsUS$4.18m0.44% $153.8m
Ali Hedayat
Independent Director3.92yrsUS$120.00k0.0067% $2.3m

4.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 0VFA's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 0VFA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Restaurant Brands International Inc.
  • Ticker: 0VFA
  • Exchange: LSE
  • Founded: 1954
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$25.962b
  • Market Cap: US$23.148b
  • Listing Market Cap: US$35.070b
  • Shares outstanding: 465.10m
  • 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 segments: TH, BK, and PLK. Its restaurants offer blend coffee, tea, espresso-based hot and cold specialty drinks, donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, hamburgers, chicken and other specialty sandwiches, french fries, soft drinks, chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other food items. As of December 31, 2019, the company owned or franchised a total of 4,932 TH restaurants, 18,838 BK restaurants, and 3,316 PLK restaurants in approximately 100 countries worldwide and U.S. territories. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 01:06
End of Day Share Price2020/03/20 00:00
Earnings2020/03/31
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.