Restaurant Brands International(QSR) - Stock detail

Restaurant Brands International

US
QSR
Restaurant Brands International Inc.(Listing date: 12/15/2014)

Restaurant Brands International Inc. is an unlimited liability company incorporated on August 25, 2014 under the laws of British Columbia, and continued as a corporation under the laws of Canada on October 23, 2014. The purpose of this company is to indirectly hold Tim Hortons and Burger King after the completion of the merger. To date, the company has not taken any actions other than the merger, such as equity financing for Berkshire. On December 8, 2014, the company changed its name from "9060669 Canada Inc." to "Restaurant Brands International Inc.".

AI Value AnalystHold
Overall Rating3.7/10
Generated at:2026-03-13 17:42:25
Analysis based on 5 financial reports covering periods from 2024-12-31 to 2025-12-31, including quarterly data from Q1 2025 to Q4 2025. Data sources include company financial statements and market data as of March 13, 2026. Complete financial dataset used for comprehensive analysis.
Overview

Restaurant Brands International operates a global quick-service restaurant portfolio with iconic brands including Tim Hortons, Burger King, Popeyes, and Firehouse Subs. The company shows strong revenue growth but faces profitability challenges with margin compression and high debt levels, while maintaining a franchise-heavy model that provides stable royalty-based revenue streams.

Valuation
4/10
Profitability
3/10
Financial health
4/10
Operation Advice
  • Hold position at current levels; monitor Q1 2026 results for margin improvement signs; consider upgrading to BUY if operational efficiency improves and debt reduction progresses; target price range of $68-$75 with current price near upper end suggesting limited upside.

Valuation

P/E TTM
30.71
P/E LYR
22.83
P/B MRQ
6.56
P/S TTM
--
AI Analysis
  • Valuation appears fair to slightly elevated with current price of $72.65, PE ratios of 22.83 (dynamic) and 30.71 (TTM), PB ratio of 6.56, and PS ratio of 2.67, suggesting limited upside potential given profitability challenges.
  • Current Price: $72.65 as of March 13, 2026
  • Dynamic PE of 22.83 and TTM PE of 30.71 indicate moderate valuation relative to earnings
  • PB Ratio of 6.56 suggests the market values the company significantly above book value
  • PS Ratio of 2.67 reflects reasonable pricing relative to sales
  • Valuation appears fair to slightly elevated given the profitability challenges
  • Target Price Range: $68-$75 with lower bound based on 20x PE multiple applied to normalized earnings
  • Upper bound considers brand strength and recovery potential
  • Current price near the upper end of this range suggests limited upside
Valuation trend

Profitability

ROE TTM
23.01%
Net margin
11.39%
Gross margin
33.85%
Total revenue
9.43B
AI Analysis
  • Strong operational fundamentals with impressive ROE of 23.01% and ROA of 3.09%, but facing profitability challenges including margin compression from 35.97% to 33.85% and significant net margin decline from 17.19% to 11.39%.
  • ROE of 23.01% remains impressive despite decline from 34.17% in 2024
  • ROA of 3.09% reflects efficient asset utilization
  • Gross margin compression from 35.97% (2024) to 33.85% (2025) suggests rising input costs and competitive pressures
  • Net Margin Decline: Significant drop from 17.19% to 11.39% indicates operational inefficiencies or increased expenses
  • Quarterly Trend: Sequential improvement visible from Q1 to Q4 2025, suggesting potential recovery trajectory
  • Strong revenue growth with 12.23% YoY revenue growth to $9.43B in FY2025
  • Despite revenue growth, net income declined 24% YoY to $776M, indicating margin compression
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--5.11%10.83%20.43%23.01%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue8.41B2.11B4.52B6.97B9.43B

Financial health

Debt/Asset
79.86%
Current ratio
0.98
Quick ratio
0.91
Cash ratio
0.91
AI Analysis
  • Mixed financial health with adequate liquidity (current ratio 0.98, quick ratio 0.91), strong revenue growth of 12.23% YoY to $9.43B, but concerning high debt burden with 79.86% debt-to-asset ratio and profitability pressure.
  • Liquidity Position: Current ratio of 0.98 and quick ratio of 0.91 indicate adequate short-term liquidity, though these are relatively tight margins
  • Leverage Profile: High debt burden with 79.86% debt-to-asset ratio, which is concerning but common in the capital-intensive restaurant industry
  • Revenue Growth: Strong top-line performance with 12.23% YoY revenue growth to $9.43B in FY2025, demonstrating brand resilience
  • Profitability Pressure: Despite revenue growth, net income declined 24% YoY to $776M, indicating margin compression
  • Franchise-heavy model provides stable royalty-based revenue streams while minimizing capital expenditure requirements
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset80.34%80.61%80.19%79.88%79.86%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.970.961.011.060.98