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 Rating4.7/10
Generated at:2026-06-11 17:40:43
Analysis based on real data for Restaurant Brands International (QSR). Financial reports from 5 periods were used: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-12. Data completeness is good, covering recent quarterly and annual performance.
Overview

Restaurant Brands International (QSR) is a leading global quick-service restaurant company with iconic brands operating primarily through a franchise model. The analysis reveals a mixed fundamental picture: exceptionally strong recent profitability and high returns on equity are counterbalanced by a highly leveraged balance sheet, tight liquidity, and an elevated trailing valuation. The company's financial health is moderate to weak, heavily dependent on maintaining stable cash flows to service its substantial debt.

Valuation
4/10
Profitability
7/10
Financial health
3/10
Operation Advice
  • Hold existing positions.
  • The current stock price of $73.90 sits within the lower part of the calculated fundamental price range of $69.84 to $97.00.
  • Await further quarters to confirm the sustainability of the recent profit margin expansion and the company's progress in managing its debt load.
  • New investors might consider initiating a position on market weakness, provided they have a tolerance for the risks associated with high leverage.

Valuation

P/E TTM
36.55
P/E LYR
22.83
P/B MRQ
7.80
P/S TTM
--
AI Analysis
  • The stock appears overvalued on a trailing P/E basis (36.55) but more reasonable on a forward P/E basis (22.83), suggesting the market is pricing in significant expected earnings growth. The high P/B ratio (7.80) is less relevant due to the franchise business model's intangible brand value. A fundamental price range of $69.84 to $97.00 is derived based on forward earnings estimates.
  • Current Price: $73.90 (as of 2026-06-12).
  • P/E (TTM): 36.55. This is elevated, suggesting the market is pricing in high future growth expectations or a premium for its brand portfolio and franchise model.
  • Forward P/E (Dynamic): 22.83. This lower figure indicates analysts expect significant earnings growth in the coming year, aligning with the explosive growth seen in Q1 2026.
  • P/B Ratio: 7.80. This is very high, typical for companies with significant intangible brand value that are not heavily reflected on the balance sheet.
  • P/S Ratio (TTM): 2.67. This is within a reasonable range for a stable, large-cap QSR operator.
  • Based on the P/E (TTM) of 36.55, the stock appears overvalued on a trailing earnings basis compared to historical market averages.
  • The Forward P/E of 22.83 suggests the market is valuing the stock based on anticipated earnings recovery and growth.
  • A reasonable forward P/E range for the company could be 18x to 25x.
  • Using a conservative annualized EPS base gives a fundamental price range of $69.84 to $97.00.
Valuation trend

Profitability

ROE TTM
27.07%
Net margin
19.66%
Gross margin
33.70%
Total revenue
2.26B
AI Analysis
  • Profitability shows a mixed but generally improving picture, with a remarkable surge in Q1 2026 where net income grew 112.58% and net margin reached 19.66%. Annual revenue grew healthily in 2025, though annual net income declined. Return on Equity (TTM) is exceptionally high at 27.07%, magnified by leverage, while Return on Assets is more modest at 3.79%. Gross margins have remained stable.
  • Q1 2026 showed remarkable year-over-year growth. Revenue grew 7.35% to $2.26B, but Net Income skyrocketed by 112.58% to $338M.
  • This drove the net margin to a very strong 19.66%, compared to margins around 10-13% in prior quarters.
  • For the full year 2025, revenue grew healthily by 12.23% to $9.43B.
  • Annual net income for 2025 declined by 24% to $776M, indicating margin pressures earlier in the year that were reversed in Q1 2026.
  • The Return on Equity (ROE) of 27.07% (TTM) is exceptionally high, a direct result of the high financial leverage.
  • The Return on Assets (ROA) of 3.79% (TTM) is more modest, reflecting the asset-intensive nature of its business segments and the true operational efficiency.
  • Gross margins have remained stable in the 33-34% range across all reported periods, demonstrating pricing power and cost management consistency.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--10.83%20.43%23.01%27.07%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue2.11B4.52B6.97B9.43B2.26B

Financial health

Debt/Asset
78.73%
Current ratio
0.99
Quick ratio
0.90
Cash ratio
0.90
AI Analysis
  • The company's financial health shows significant risks with a tight liquidity position (current ratio 0.99) and a very high Debt-to-Asset ratio of 78.73%, indicating a heavily leveraged capital structure. While the franchise model generates strong cash flows, the balance sheet is highly leveraged and liquidity is constrained, resulting in a moderate to weak overall financial health assessment.
  • The current ratio of 0.99 and quick ratio of 0.90 indicate a tight liquidity position.
  • The company has just enough current assets to cover its current liabilities, which could pose a risk if faced with unexpected short-term obligations or a downturn.
  • The Debt-to-Asset ratio of 78.73% is very high.
  • This indicates a heavily leveraged capital structure, which amplifies both risks and potential returns.
  • High interest expenses can pressure earnings during periods of rising rates or economic stress.
  • While the franchise model generates strong cash flows, the balance sheet is highly leveraged and liquidity is constrained.
  • The company's financial health is moderate to weak, heavily dependent on its ability to maintain stable cash flows to service its debt.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset80.61%80.19%79.88%79.86%78.73%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio0.961.011.060.980.99