NYSE:QSR

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Restaurant Brands International

Executive Summary

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


Snowflake Analysis

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has Restaurant Brands International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QSR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.4%

QSR

-9.5%

US Hospitality

-5.3%

US Market


1 Year Return

-20.3%

QSR

-22.5%

US Hospitality

10.4%

US Market

Return vs Industry: QSR exceeded the US Hospitality industry which returned -21.8% over the past year.

Return vs Market: QSR underperformed the US Market which returned 12% over the past year.


Shareholder returns

QSRIndustryMarket
7 Day-8.4%-9.5%-5.3%
30 Day-10.0%-8.5%-2.1%
90 Day-8.0%11.0%1.7%
1 Year-17.1%-20.3%-21.1%-22.5%12.9%10.4%
3 Year-13.0%-20.8%-17.7%-23.1%34.3%25.4%
5 Year62.7%44.1%11.3%-0.4%73.7%54.3%

Price Volatility Vs. Market

How volatile is Restaurant Brands International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

3.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QSR ($52) is trading below our estimate of fair value ($53.61)

Significantly Below Fair Value: QSR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: QSR is poor value based on its PE Ratio (27.9x) compared to the US Hospitality industry average (27.1x).

PE vs Market: QSR is poor value based on its PE Ratio (27.9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: QSR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: QSR is overvalued based on its PB Ratio (6.7x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Restaurant Brands International forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QSR's forecast earnings growth (20.9% per year) is above the savings rate (2.2%).

Earnings vs Market: QSR's earnings (20.9% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: QSR's revenue (7.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: QSR's revenue (7.5% 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 (60.8%).


Next Steps

Past Performance

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

28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QSR has high quality earnings.

Growing Profit Margin: QSR's current net profit margins (11%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: QSR has become profitable over the past 5 years, growing earnings by 28.8% per year.

Accelerating Growth: QSR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: QSR had negative earnings growth (-12.6%) over the past year, making it difficult to compare to the Hospitality industry average (-50.9%).


Return on Equity

High ROE: Whilst QSR's Return on Equity (22.17%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Restaurant Brands International's financial position?


Financial Position Analysis

Short Term Liabilities: QSR's short term assets ($2.7B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: QSR's short term assets ($2.7B) do not cover its long term liabilities ($17.0B).


Debt to Equity History and Analysis

Debt Level: QSR's debt to equity ratio (313.1%) is considered high.

Reducing Debt: QSR's debt to equity ratio has increased from 129.9% to 313.1% over the past 5 years.

Debt Coverage: QSR's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: QSR's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: QSR's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: QSR's dividend (4%) is low compared to the top 25% of dividend payers in the US market (4.78%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (110.4%), 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 (72.9% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Jos Cil (50 yo)

1.75yrs

Tenure

US$20,711,740

Compensation

Mr. José 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 ($USD20.71M) is above average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Jos's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
José Cil
Chief Executive Officer1.75yrsUS$20.71m0.23%
$ 56.3m
Matthew Dunnigan
Chief Financial Officer2.75yrsUS$7.87m0.0024%
$ 584.5k
Joshua Kobza
Chief Operating Officer1.75yrsUS$17.09m0.082%
$ 20.0m
Jill Granat
General Counsel & Corporate Secretary5.83yrsUS$4.89m0.096%
$ 23.5m
Jacqueline Friesner
Controller & Chief Accounting Officer5.83yrsno data0.033%
$ 8.1m
Fernando Machado
Chief Marketing Officer1.75yrsno data0.0036%
$ 864.6k
Axel Schwan
President of Tim Hortons for Canada and the US1yrno data0.0050%
$ 1.2m
Cara Piggot
Global Head of Quality Assurance5.83yrsno datano data
Tammy Martin
Head of Marketing - Tim Hortons - Canadano datano datano data
Patrick McGrade
Chief Corporate Affairs Officer5.58yrsno datano data
Andrea John
Head of Finance - Tim Hortons - Canadano datano datano data
Duncan Stanley Fulton
Chief Corporate Officer2.25yrsno datano data

2.5yrs

Average Tenure

46yo

Average Age

Experienced Management: QSR's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlos da Veiga Sicupira
Independent Director5.83yrsUS$140.00k0.029%
$ 7.0m
Roberto Moses Motta
Independent Director5.83yrsUS$100.00k0.0072%
$ 1.8m
Paul Fribourg
Lead Independent Directorno dataUS$140.00k0.038%
$ 9.2m
Alexandre Behring
Independent Co-Chairman of the Board1.75yrsUS$240.00k0.049%
$ 11.9m
Maximilien De Limburg Stirum
Independent Director0.25yrno datano data
João Mauricio Giffoni de Castro Neves
Independent Director2.25yrsUS$100.00kno data
David Clanachan
Chairman of RBI Canada4.17yrsno datano data
Neil Golden
Independent Director4.25yrsUS$250.00kno data
Daniel Schwartz
Co-Chairman1.75yrsUS$4.18m0.43%
$ 105.5m
Golnar Khosrowshahi
Independent Director2.25yrsUS$128.33k0.0019%
$ 455.4k
Ali Hedayat
Independent Director4.25yrsUS$120.00k0.0066%
$ 1.6m
Giovanni Prato
Independent Director0.25yrno datano data

2.3yrs

Average Tenure

53.5yo

Average Age

Experienced Board: QSR's board of directors are not considered experienced ( 2.3 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 only sold shares 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 company bio, 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$24.355b
  • Market Cap: US$16.113b
  • Shares outstanding: 459.36m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QSR NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 2014
QSRTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2014
QSRNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2014
0R6DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2014
0VFALSE (London Stock Exchange)YesCommon SharesGBCADDec 2014

Biography

Restaurant Brands International Inc. owns, operates, and franchises quick service restaurants under the Tim Hortons (TH), Burger King (BK), and Popeyes (PLK) brand names. The company operates through three ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:54
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.