Restaurant Brands International Inc.

NYSE:QSR Stock Report

Mkt Cap: US$34.5b

We’ve recently updated our valuation analysis.

Restaurant Brands International Valuation

Is QSR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QSR?

Other financial metrics that can be useful for relative valuation.

QSR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.9x
Enterprise Value/EBITDA17.3x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does QSR's PE Ratio compare to its peers?

The above table shows the PE ratio for QSR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.2x
YUM Yum! Brands
30.7x10.8%US$37.7b
YUMC Yum China Holdings
38.2x18.3%US$24.5b
DRI Darden Restaurants
20.5x6.6%US$19.8b
CMG Chipotle Mexican Grill
55.4x16.9%US$56.9b
QSR Restaurant Brands International
23.1x11.8%US$34.5b

Price-To-Earnings vs Peers: QSR is good value based on its Price-To-Earnings Ratio (23.1x) compared to the peer average (36.2x).

Price to Earnings Ratio vs Industry

How does QSR's PE Ratio compare vs other companies in the US Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a30.3%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a30.3%
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Price-To-Earnings vs Industry: QSR is expensive based on its Price-To-Earnings Ratio (23.1x) compared to the US Hospitality industry average (19.7x)

Price to Earnings Ratio vs Fair Ratio

What is QSR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

QSR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.1x
Fair PE Ratio29.8x

Price-To-Earnings vs Fair Ratio: QSR is good value based on its Price-To-Earnings Ratio (23.1x) compared to the estimated Fair Price-To-Earnings Ratio (29.8x).

Share Price vs Fair Value

What is the Fair Price of QSR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QSR ($75.27) is trading above our estimate of fair value ($60.63)

Significantly Below Fair Value: QSR is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst QSR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$75.27
US$77.01
+2.3%
7.9%US$85.00US$66.00n/a26
May ’24US$70.60
US$73.19
+3.7%
7.9%US$87.00US$65.00n/a27
Apr ’24US$67.14
US$71.59
+6.6%
7.4%US$81.00US$62.00n/a27
Mar ’24US$63.83
US$71.48
+12.0%
7.3%US$81.00US$62.00n/a27
Feb ’24US$67.05
US$69.47
+3.6%
8.8%US$83.00US$60.00n/a26
Jan ’24US$64.67
US$67.31
+4.1%
7.3%US$80.00US$60.00n/a26
Dec ’23US$66.28
US$66.59
+0.5%
8.0%US$80.00US$58.00n/a27
Nov ’23US$58.97
US$63.85
+8.3%
9.5%US$75.00US$53.00n/a27
Oct ’23US$53.18
US$65.11
+22.4%
8.4%US$75.00US$57.00n/a27
Sep ’23US$59.35
US$65.58
+10.5%
8.8%US$75.00US$57.00n/a26
Aug ’23US$54.46
US$62.49
+14.7%
14.0%US$87.00US$50.00n/a26
Jul ’23US$51.59
US$63.57
+23.2%
10.2%US$75.00US$50.00n/a26
Jun ’23US$51.85
US$64.22
+23.9%
9.3%US$75.00US$55.00US$75.3026
May ’23US$57.09
US$66.51
+16.5%
8.4%US$77.00US$56.00US$70.6027
Apr ’23US$58.22
US$67.06
+15.2%
7.9%US$77.00US$58.00US$67.1427
Mar ’23US$54.64
US$67.22
+23.0%
7.6%US$77.00US$58.00US$63.8327
Feb ’23US$56.49
US$67.70
+19.9%
8.8%US$79.00US$58.00US$67.0527
Jan ’23US$60.68
US$68.96
+13.6%
8.0%US$79.00US$58.00US$64.6726
Dec ’22US$54.35
US$68.92
+26.8%
7.9%US$79.00US$58.00US$66.2826
Nov ’22US$57.64
US$70.33
+22.0%
8.1%US$79.00US$58.00US$58.9728
Oct ’22US$62.28
US$75.97
+22.0%
7.0%US$90.00US$63.00US$53.1827
Sep ’22US$64.67
US$76.11
+17.7%
6.8%US$90.00US$63.00US$59.3527
Aug ’22US$68.19
US$74.92
+9.9%
7.3%US$90.00US$63.00US$54.4626
Jul ’22US$65.16
US$74.60
+14.5%
6.2%US$86.00US$66.00US$51.5925
Jun ’22US$70.47
US$74.52
+5.7%
6.0%US$83.00US$66.00US$51.8525

Analyst Forecast: Target price is less than 20% higher than the current share price.

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