Restaurant Brands International Inc. (QSR) stock analysis

P/E below its 5-year median

Restaurant Brands International's P/E of 18.2 is below its own 5-year median of 22.5.

P/E below the industry

Restaurant Brands International's P/E of 18.2 is below the Eating and Drinking Places median of 28.5.

EV/EBITDA above its 5-year median

Restaurant Brands International's EV/EBITDA of 16.5 is above its 5-year median of 15.0.

P/B above the industry

Restaurant Brands International's price-to-book of 8.78 is above the Eating and Drinking Places median of 3.13.

Trading above fair value

The share price of $76.66 is above our fair value estimate of $75.02.

Margin of safety under 20%

The price is 2.2% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 13.2% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -10.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 5.5% over the last twelve months; the Eating and Drinking Places median is 5.9%.

Guidance lowered

Restaurant Brands International lowered its 2026 Adjusted Interest Expense, net outlook on Oct 29, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 16.2%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 336% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 576% five years ago to 336%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.1% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.96 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.92; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Restaurant Brands International paid dividends worth 3.4% of the share price over the last twelve months.

Yield below Treasuries

The 3.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Restaurant Brands International yields 3.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 73.2% of free cash flow.