Should Tim Hortons and International Growth Shift Change the Narrative for Restaurant Brands International (QSR) Investors?

• Restaurant Brands International Inc. recently reported third-quarter 2025 earnings that surpassed analyst expectations, with revenue rising to US$2.45 billion and net income reaching US$315 million, bolstered by gains at Tim Hortons and international operations.
• Approximately 70% of the company’s earnings now come from the Tim Hortons and International segments, reflecting a shift in geographic and brand contribution within the group.
• We’ll explore how these strong quarterly results, fueled by Tim Hortons and international growth, impact Restaurant Brands International’s investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Restaurant Brands International Investment Narrative Recap

To be a Restaurant Brands International shareholder, you need to believe in the company’s global growth strategy centered on Tim Hortons and its expanding international presence. The latest earnings beat supports this narrative and reinforces management’s target of 8% organic adjusted operating income growth, but does not materially shift the near-term catalyst: acceleration of international unit growth. The biggest risk remains cost inflation, especially in key ingredients like beef and coffee, which could pressure margins and offset revenue momentum if sustained.

Among the recent announcements, the board’s declaration of a US$0.62 per share quarterly dividend stands out. This steady payout, payable January 6, 2026, aligns with management's emphasis on delivering consistent returns to shareholders and underlines the company’s confidence in its cash flow strength, even as input cost inflation and competitive pressures persist as factors to watch.

However, even as earnings impress, investors should pay close attention to margin pressure from commodity costs lurking in the background...

Read the full narrative on Restaurant Brands International (it's free!)

Restaurant Brands International's outlook anticipates $10.1 billion in revenue and $2.0 billion in earnings by 2028. This scenario assumes a 3.5% annual revenue growth rate and a $1.1 billion increase in earnings from the current $862.0 million.

Uncover how Restaurant Brands International's forecasts yield a $77.69 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community contributors have published five fair value estimates for Restaurant Brands International, ranging from as low as US$32.65 to as high as US$82.43. While these diverse views reflect confidence in earnings growth potential, you should also consider how ongoing cost inflation could impact the company’s ability to deliver on future growth expectations.

Explore 5 other fair value estimates on Restaurant Brands International - why the stock might be worth less than half the current price!

Build Your Own Restaurant Brands International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Restaurant Brands International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Restaurant Brands International's overall financial health at a glance.

Curious About Other Options?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 38 best rare earth metal stocks of the very few that mine this essential strategic resource.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com