Should You Investigate Restaurant Brands International Inc. (NYSE:QSR) At US$69.37?

Today we're going to take a look at the well-established Restaurant Brands International Inc. (NYSE:QSR). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on Restaurant Brands International’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Restaurant Brands International

What Is Restaurant Brands International Worth?

According to my valuation model, Restaurant Brands International seems to be fairly priced at around 4.71% above my intrinsic value, which means if you buy Restaurant Brands International today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $66.25, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Restaurant Brands International’s low beta implies that the stock is less volatile than the wider market.

What does the future of Restaurant Brands International look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 90% over the next couple of years, the future seems bright for Restaurant Brands International. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in QSR’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on QSR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For instance, we've identified 2 warning signs for Restaurant Brands International (1 is concerning) you should be familiar with.

If you are no longer interested in Restaurant Brands International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.