What Is Restaurant Brands International Inc.'s (NYSE:QSR) Share Price Doing?

Let's talk about the popular Restaurant Brands International Inc. (NYSE:QSR). The company's shares saw a decent share price growth of 11% on the NYSE over the last few months. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we 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

Is Restaurant Brands International Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 11.17% above our 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 $71.69, there’s only an insignificant downside when the price falls to its real value. 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. Restaurant Brands International's earnings over the next few years are expected to increase by 57%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

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

If you'd like to know more about Restaurant Brands International as a business, it's important to be aware of any risks it's facing. Our analysis shows 3 warning signs for Restaurant Brands International (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.

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.