Restaurant Brands International (QSR): Evaluating Whether Recent Momentum Still Leaves the Stock Undervalued

Restaurant Brands International (QSR) has quietly outperformed the broader market over the past 3 months, and that move is making investors take a closer look at what is driving this momentum.

See our latest analysis for Restaurant Brands International.

Zooming out, that 15.9% 3 month share price return sits on top of a steadier 9.8% year to date share price gain and a more modest 5.0% one year total shareholder return. Together, these moves suggest momentum is quietly building rather than peaking.

If this kind of steady momentum appeals to you, it might be worth scanning for other consumer facing names and seeing what stands out in fast growing stocks with high insider ownership.

With the shares trading below analyst targets and our intrinsic value estimate, yet already reflecting solid profit growth, the real question is whether Restaurant Brands is still undervalued or if the market is already pricing in its next stage of expansion.

Most Popular Narrative Narrative: 7.7% Undervalued

With Restaurant Brands International closing at $71.95 against a narrative fair value of $77.93, the valuation hinges on how convincingly future earnings compound from here.

Analysts expect earnings to reach $2.0 billion (and earnings per share of $4.51) by about September 2028, up from $862.0 million today. The analysts are largely in agreement about this estimate.

Read the complete narrative.

Curious how steady top line growth, expanding margins, and a richer earnings multiple are combined in that upside case? Want to see the full playbook?

Result: Fair Value of $77.93 (UNDERVALUED)

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

However, persistent commodity cost inflation and execution hiccups in key international markets could easily derail the upbeat earnings and valuation story.

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

Build Your Own Restaurant Brands International Narrative

If you see the story differently, or would rather dig into the numbers firsthand, you can shape a fresh 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 3 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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