NYSE:QSR

Stock Analysis Report

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.

Snowflake

Fundamentals

Second-rate dividend payer with limited growth.


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


Market Performance


7 Day Return

-0.03%

QSR

-2.6%

US Hospitality

-0.6%

US Market


1 Year Return

23.0%

QSR

-3.6%

US Hospitality

0.6%

US Market

QSR outperformed the Hospitality industry which returned -2.6% over the past year.

QSR outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

QSRIndustryMarket
7 Day-0.03%-2.6%-0.6%
30 Day-3.8%1.9%2.2%
90 Day3.7%0.5%1.1%
1 Year26.6%23.0%-1.3%-3.6%2.9%0.6%
3 Year68.7%57.5%42.7%33.2%44.6%35.2%
5 Yearn/a39.9%24.6%61.9%44.2%

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

3 weeks ago | Simply Wall St

Paul Fribourg Is The Independent Director of Restaurant Brands International Inc. (NYSE:QSR) And They Just Sold 80.9% Of Their Shares

Valuation

Is Restaurant Brands International undervalued based on future cash flows and its price relative to the stock market?

31.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Restaurant Brands International's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Restaurant Brands International's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Restaurant Brands International is overvalued based on earnings compared to the US Hospitality industry average.

Restaurant Brands International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Restaurant Brands International is poor value based on expected growth next year.


Price Based on Value of Assets

Restaurant Brands International is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is Restaurant Brands International expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Restaurant Brands International's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Restaurant Brands International's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Restaurant Brands International's revenue growth is positive but not above the United States of America market average.

Restaurant Brands International's earnings growth is positive but not above the United States of America market average.

Restaurant Brands International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Restaurant Brands International is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

48.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Restaurant Brands International has delivered over 20% year on year earnings growth in the past 5 years.

Restaurant Brands International's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Restaurant Brands International's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.


Return on Equity

Whilst Restaurant Brands International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Restaurant Brands International used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Restaurant Brands International has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Restaurant Brands International's financial position?


Financial Position Analysis

Restaurant Brands International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Restaurant Brands International's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Restaurant Brands International's level of debt (302.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (191.7% vs 302.9% today).

Debt is not well covered by operating cash flow (11.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

2.97%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Restaurant Brands International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Restaurant Brands International's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Restaurant Brands International has been paying a dividend for less than 10 years.

Dividend payments have increased, but Restaurant Brands International only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of Restaurant Brands International's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Jos Cil (49yo)

0.7yrs

Tenure

US$15,330,257

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

Jos's remuneration is higher than average for companies of similar size in United States of America.

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


Management Age and Tenure

4.6yrs

Average Tenure

41yo

Average Age

The tenure for the Restaurant Brands International management team is about average.


Board Age and Tenure

4.8yrs

Average Tenure

57yo

Average Age

The tenure for the Restaurant Brands International board of directors is about average.


Insider Trading

Restaurant Brands International individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,167,15029 Aug 19
Ali Hedayat
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$77.81
SellUS$29,633,27729 Aug 19
Continental Grain Company Corp.
EntityCompany
Shares384,024
Max PriceUS$78.09
SellUS$37,675,59728 Aug 19
Paul Fribourg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares488,024
Max PriceUS$78.09
BuyUS$2,912,85020 Feb 19
Alexandre Macedo
EntityIndividual
Role
Unit President
President of Tim Hortons
Shares45,000
Max PriceUS$64.73

Ownership Breakdown


Management Team

  • Daniel Schwartz (38yo)

    Co-Chairman

    • Tenure: 0.7yrs
    • Compensation: US$18.78m
  • Jos Cil (49yo)

    Chief Executive Officer

    • Tenure: 0.7yrs
    • Compensation: US$15.33m
  • Jill Granat (53yo)

    General Counsel & Corporate Secretary

    • Tenure: 4.8yrs
    • Compensation: US$2.40m
  • Jacqueline Friesner (46yo)

    Controller & Chief Accounting Officer

    • Tenure: 4.8yrs
  • Patrick McGrade

    Chief Corporate Affairs Officer

    • Tenure: 4.5yrs
  • Josh Kobza (32yo)

    Chief Operating Officer

    • Tenure: 0.7yrs
    • Compensation: US$2.47m
  • Alex Macedo (41yo)

    President of Tim Hortons

    • Tenure: 4.8yrs
    • Compensation: US$14.38m
  • Cara Piggot

    Global Head of Quality Assurance

    • Tenure: 4.8yrs
  • Tammy Martin

    Head of Marketing - Tim Hortons - Canada

    • Tenure: 0yrs
  • Matt Dunnigan (35yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
    • Compensation: US$2.04m

Board Members

  • Carlos da Veiga Sicupira (71yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$140.00k
  • Martin Ellis Franklin (54yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$120.00k
  • Roberto Moses Motta (61yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$100.00k
  • Paul Fribourg (65yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$140.00k
  • Alexandre Behring (52yo)

    Co-Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$240.00k
  • Alexandre Van Damme (57yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$120.00k
  • Marc Caira (65yo)

    Vice Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$250.00k
  • David Clanachan (57yo)

    Chairman of RBI Canada

    • Tenure: 3.1yrs
  • Daniel Schwartz (38yo)

    Co-Chairman

    • Tenure: 0.7yrs
    • Compensation: US$18.78m
  • Ali Hedayat (43yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$111.01k

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$34.263b
  • Market Cap: US$18.608b
  • Shares outstanding: 463.63m
  • 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 Analysis2019/09/21 00:38
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.