Restaurant Brands International Inc. Fundamental Analysis (NYSE: QSR)
Restaurant Brands International Inc. Fundamental Analysis (NYSE: QSR)
Restaurant Brands International Inc. (NYSE: QSR) shows strong financial fundamentals with a PE ratio of 19.33, profit margin of 13.13%, and ROE of 34.86%. The company generates $9.7B in annual revenue with strong year-over-year growth of 12.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze QSR's fundamental strength across five key dimensions:
Efficiency Score
WeakQSR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentQSR trades at attractive valuation levels.
Growth Score
ModerateQSR shows steady but slowing expansion.
Financial Health Score
ModerateQSR shows balanced financial health with some risks.
Profitability Score
ModerateQSR maintains healthy but balanced margins.
Key Financial Metrics
Is QSR Expensive or Cheap?
P/E Ratio
QSR trades at 19.33 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, QSR's PEG of 1.84 indicates fair valuation.
Price to Book
The market values Restaurant Brands International Inc. at 7.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.61 times EBITDA. This is generally considered low.
How Well Does QSR Make Money?
Net Profit Margin
For every $100 in sales, Restaurant Brands International Inc. keeps $13.13 as profit after all expenses.
Operating Margin
Core operations generate 27.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.86 in profit for every $100 of shareholder equity.
ROA
Restaurant Brands International Inc. generates $5.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Restaurant Brands International Inc. produces operating cash flow of $1.84B, showing steady but balanced cash generation.
Free Cash Flow
Restaurant Brands International Inc. generates strong free cash flow of $1.57B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.52 in free cash annually.
FCF Yield
QSR converts 5.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.35
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How QSR Stacks Against Its Sector Peers
| Metric | QSR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.33 | 26.74 | Better (Cheaper) |
| ROE | 34.86% | 965.00% | Weak |
| Net Margin | 13.13% | -4914.00% (disorted) | Strong |
| Debt/Equity | 4.07 | 0.61 | Weak (High Leverage) |
| Current Ratio | 1.01 | 2.31 | Neutral |
| ROA | 5.09% | 295.00% | Weak |
QSR outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Restaurant Brands International Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.70%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
44.37%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
68.27%
Industry Style: Cyclical, Growth, Discretionary
High Growth