QSR

Restaurant Brands InternationalNYSE:QSR Stock Report

Market Cap

US$29.4b

7D

-2.1%

1Y

13.0%

Updated

16 Sep, 2021

Data

Company Financials +
QSR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends2/6

QSR Overview

Restaurant Brands International Inc. owns, operates, and franchises quick service restaurants under the Tim Hortons (TH), Burger King (BK), and Popeyes (PLK) brands.

Restaurant Brands International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Restaurant Brands International
Historical stock prices
Current Share PriceUS$63.09
52 Week HighUS$51.12
52 Week LowUS$71.12
Beta1.18
1 Month Change-2.37%
3 Month Change-4.68%
1 Year Change13.02%
3 Year Change4.20%
5 Year Change36.29%
Change since IPO71.86%

Recent News & Updates

Jul 26
Restaurant Brands International (NYSE:QSR) Takes On Some Risk With Its Use Of Debt

Restaurant Brands International (NYSE:QSR) Takes On Some Risk With Its Use Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 23

Restaurant Brands International Is A Great Bargain

QSR has exciting growth prospects ahead thanks to the opening of many new stores and the launch of attractive products. QSR is attractively valued right now. Also, given its 3.3% dividend, the stock can offer double-digit total annual returns over the next four years.

Shareholder Returns

QSRUS HospitalityUS Market
7D-2.1%-1.6%-0.6%
1Y13.0%29.0%33.6%

Return vs Industry: QSR underperformed the US Hospitality industry which returned 29.5% over the past year.

Return vs Market: QSR underperformed the US Market which returned 33.7% over the past year.

Price Volatility

Is QSR's price volatile compared to industry and market?
QSR volatility
QSR Beta1.18
Industry Beta1.71
Market Beta1

Stable Share Price: QSR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: QSR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19545,200Jos Cilhttps://www.rbi.com

Restaurant Brands International Inc. owns, operates, and franchises quick service restaurants under the Tim Hortons (TH), Burger King (BK), and Popeyes (PLK) brands. The company operates through three segments: TH, BK, and PLK. Its restaurants offer blend coffee, tea, espresso-based hot and cold specialty drinks, donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, hamburgers, chicken and other specialty sandwiches, french fries, soft drinks, chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other food items.

Valuation

Is Restaurant Brands International undervalued compared to its fair value and its price relative to the market?

43.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: QSR ($63.09) is trading above our estimate of fair value ($59.9)

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


Price To Earnings Ratio

PE vs Industry: QSR is poor value based on its PE Ratio (43.4x) compared to the US Hospitality industry average (24.2x).

PE vs Market: QSR is poor value based on its PE Ratio (43.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: QSR is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: QSR is overvalued based on its PB Ratio (11.4x) compared to the US Hospitality industry average (3.4x).


Future Growth

How is Restaurant Brands International forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QSR's forecast earnings growth (11.9% per year) is above the savings rate (2%).

Earnings vs Market: QSR's earnings (11.9% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: QSR's earnings are forecast to grow, but not significantly.

Revenue vs Market: QSR's revenue (5.6% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: QSR's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QSR's Return on Equity is forecast to be very high in 3 years time (87.7%).


Past Performance

How has Restaurant Brands International performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QSR has high quality earnings.

Growing Profit Margin: QSR's current net profit margins (12.5%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: QSR's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: QSR's earnings growth over the past year (9.4%) is below its 5-year average (10.8% per year).

Earnings vs Industry: QSR earnings growth over the past year (9.4%) underperformed the Hospitality industry 96.4%.


Return on Equity

High ROE: Whilst QSR's Return on Equity (24.04%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Restaurant Brands International's financial position?


Financial Position Analysis

Short Term Liabilities: QSR's short term assets ($2.5B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: QSR's short term assets ($2.5B) do not cover its long term liabilities ($17.3B).


Debt to Equity History and Analysis

Debt Level: QSR's debt to equity ratio (299.5%) is considered high.

Reducing Debt: QSR's debt to equity ratio has increased from 126.4% to 299.5% over the past 5 years.

Debt Coverage: QSR's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: QSR's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

What is Restaurant Brands International current dividend yield, its reliability and sustainability?

3.36%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 17 2021Ex Dividend DateSep 20 2021Dividend Pay DateOct 05 202115 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: QSR's dividend (3.36%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: QSR's dividend (3.36%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, QSR has been paying a dividend for less than 10 years.

Growing Dividend: QSR's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.2%), QSR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QSR's dividends in 3 years are forecast to be covered by earnings (62.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Jos Cil (51 yo)

2.67yrs

Tenure

US$20,054,416

Compensation

Mr. Jose E. Cil, also known as Jos, has been the Chief Executive Officer at Restaurant Brands International Inc., a General Partner of Restaurant Brands International Limited Partnership since January 23,...


CEO Compensation Analysis

Compensation vs Market: Jos's total compensation ($USD20.05M) is above average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Jos's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: QSR's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: QSR's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: QSR insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Restaurant Brands International Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Restaurant Brands International Inc.
  • Ticker: QSR
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$29.369b
  • Market Cap: US$20.066b
  • Shares outstanding: 463.34m
  • Website: https://www.rbi.com

Number of Employees


Location

  • Restaurant Brands International Inc.
  • 130 King Street West
  • Suite 300
  • Toronto
  • Ontario
  • M5X 1E1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:51
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.