A Look at Restaurant Brands International's (NYSE:QSR) Valuation After Strong Q3 Results and Recent Acquisitions

Restaurant Brands International (NYSE:QSR) just released third-quarter results reflecting increased revenue and net income, driven by recent acquisitions as well as strong sales growth at its Tim Hortons Canada and international divisions.

See our latest analysis for Restaurant Brands International.

It has been a busy stretch for Restaurant Brands International, with recent leadership changes and completed acquisitions helping fuel the company’s growth narrative. Despite broader market volatility and some post-earnings selling pressure, the stock is building gradual momentum, showing a 5% share price return over the last 90 days and a 3.4% total shareholder return in the past year. Its longer-term trajectory remains strong.

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The company’s latest numbers demonstrate clear progress and strong execution. However, with shares up modestly this year, investors are left wondering if there is still value to be found or if future growth is already priced in.

Most Popular Narrative: 12.8% Undervalued

Restaurant Brands International is currently trading at $67.74, while the most widely followed narrative places its fair value near $77.69. The gap between these numbers is drawing attention from market strategists, especially as growth drivers and margin expansion take the spotlight.

Sustained investment in digital capabilities, including rollout of new AI-driven operational technologies, digital ordering platforms, loyalty apps, and personalized marketing, positions RBI to enhance order volume, streamline store operations, and boost per-store sales and EBITDA margins over time.

Read the complete narrative.

What powers this premium? The narrative banks on several game-changing improvements in how the company operates globally and expects a profitability jump that rivals the fastest-growing segments of the restaurant world. Want to know which forecasts break the mold and set this valuation apart? Uncover the financial leaps fueling this bold projection inside the full analysis.

Result: Fair Value of $77.69 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent cost inflation and intensified competition could squeeze margins or slow growth. These factors pose real challenges to the prevailing optimism around Restaurant Brands International.

Find out about the key risks to this Restaurant Brands International narrative.

Build Your Own Restaurant Brands International Narrative

If you want a different perspective or prefer doing the deep dive yourself, try exploring the data and shaping your own narrative in just a few minutes; Do it your way

A great starting point for your Restaurant Brands International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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