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 Rating3/10
Generated at:2026-04-30 17:41:39
Analysis based on real data. Financial reports from 5 periods were used: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Market price data as of 2026-04-30.
Overview

Restaurant Brands International (QSR) is a major quick-service restaurant company with strong global brands and a franchise-based model. The analysis reveals a mixed fundamental picture: the company shows robust revenue growth but faces significant challenges including high financial leverage, tight liquidity, and declining profitability margins. The stock is currently trading at a premium valuation.

Valuation
2/10
Profitability
4/10
Financial health
3/10
Operation Advice
  • Based on fundamental analysis, the stock is considered overvalued with a target price of approximately $74.13, below the current market price of $80.68.
  • New investors should wait for a more attractive entry point or signs of improving profitability and debt reduction.
  • Existing investors may maintain their position but should monitor leverage and margin trends closely.

Valuation

P/E TTM
30.71
P/E LYR
22.83
P/B MRQ
6.56
P/S TTM
--
AI Analysis
  • The stock trades at a premium valuation with a high trailing P/E of 30.71 and a very high P/B ratio of 6.56. A fundamental target price calculation suggests the stock is overvalued at its current price.
  • Current Market Price is $80.68.
  • Forward P/E (Dynamic) is 22.83, based on future earnings estimates.
  • Trailing P/E (TTM) is 30.71, based on the last twelve months of earnings ($2.35 EPS).
  • Price-to-Book (P/B) is 6.56, which is very high.
  • Price-to-Sales (P/S) is 2.97, a moderate level for a large QSR operator.
  • The stock trades at a premium. The TTM P/E of 30.71 is high, especially considering the recent year-over-year decline in net income.
  • The high P/B ratio of 6.56 further supports a premium valuation.
  • A reasonable P/E range for the company could be 18x to 25x.
  • Using the FY 2025 diluted EPS of $2.35, a lower valuation range (18x P/E) is $42.30 and an upper range (25x P/E) is $58.75.
  • A fundamental target price based on a normalized P/E of 21x on an implied forward EPS (~$3.53) is $74.13, suggesting the current price of $80.68 is towards the upper end of a reasonable range and the stock is overvalued.
Valuation trend

Profitability

ROE TTM
23.01%
Net margin
11.39%
Gross margin
33.85%
Total revenue
9.43B
AI Analysis
  • The company shows strong revenue growth but significant pressure on profitability, with net income declining 24% in FY 2025 and contracting gross and net margins.
  • Revenue Growth remains strong. For the fiscal year ending Dec 31, 2025, revenue grew 12.23% year-over-year to $9.43B.
  • Quarterly data shows consistent double-digit revenue growth.
  • Profitability metrics are under pressure. Net income for FY 2025 declined by 24% to $776M.
  • The net margin dropped from 17.19% in FY 2024 to 11.39% in FY 2025.
  • The gross margin contracted from 35.97% to 33.85% over the same period, suggesting rising cost pressures.
  • The diluted EPS for FY 2025 was $2.35, down from $3.18 in FY 2024.
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
  • The company's financial health shows a tight liquidity position and a very high debt-to-asset ratio, indicating significant leverage risk, though this contributes to a high Return on Equity.
  • Liquidity: The current ratio of 0.98 and quick ratio of 0.91 indicate a tight liquidity position.
  • The company has minimal cushion to cover its short-term liabilities with its current assets, which is a point of risk.
  • Solvency: The debt-to-asset ratio of 79.86% is very high.
  • This indicates a highly leveraged capital structure, making the company more vulnerable to interest rate increases and economic downturns.
  • A significant portion of its operations is financed by debt.
  • While the high leverage is a risk, it has contributed to an impressive Return on Equity (ROE) of 23.01% (TTM).
  • The Return on Assets (ROA) of 3.09% (TTM) is relatively low, highlighting that the high ROE is primarily driven by financial leverage rather than exceptional asset efficiency.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset80.34%80.61%80.19%79.88%79.86%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.970.961.011.060.98