Want to see QSR full AI Analyst Report?
Top Page
Restaurant Brands International
(NYSE:QSR)
Select Model
Select Model
Rating:68Neutral
Price Target:
$89.00
▲(9.12% Upside)
Action:Reiterated
Date:08/11/26
The score is driven by solid underlying financial performance (steady growth and strong free cash flow) and a constructive earnings update (reiterated guidance, buybacks, and improving credit trajectory). Offsetting these positives are the high-leverage balance-sheet risk and a weaker near-term technical setup, while valuation is supportive due to the combination of a mid-teens P/E and a strong dividend yield.
Positive Factors
Steady revenue and operating income growth
Consistent system sales and operating income growth indicate sustained brand demand and operating leverage. The franchise-led model allows higher sales across the network to support royalty growth without requiring proportional company-operated investment.
Negative Factors
High leverage limits financial flexibility
Leverage remains elevated for a franchisor, increasing sensitivity to interest rates, traffic declines and weaker franchisee economics. Although debt metrics are improving, the multi-year path to the target limits flexibility during an operating downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue and operating income growth
Consistent system sales and operating income growth indicate sustained brand demand and operating leverage. The franchise-led model allows higher sales across the network to support royalty growth without requiring proportional company-operated investment.
Read all positive factors
Restaurant Brands International Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and where there might be challenges or opportunities for expansion.
Analyzes revenue from different business segments, highlighting which areas are driving growth and where there might be challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyRestaurant Brands International (QSR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.02B
Dividend Yield3.25%
Average Volume (3M)2.77M
Price to Earnings (P/E)19.0
Beta (1Y)0.33
Revenue Growth6.51%
EPS Growth40.57%
CountryUS
Employees53,500
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)4.10
Shares Outstanding348,758,060
10 Day Avg. Volume2,332,984
30 Day Avg. Volume2,773,952
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)6.27
Price to Sales (P/S)2.42
P/FCF Ratio15.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$84.75Price Target Upside3.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)4.05
Revenue Forecast (FY)$9.85B
Restaurant Brands International Business Overview & Revenue Model
Company Description
Restaurant Brands International Inc. (RBI), a prominent quick-service restaurant enterprise, maintains its headquarters in Toronto, Canada. Established in 1954, the company operates globally, managing and franchising four distinct and widely recog...
How the Company Makes Money
Restaurant Brands International primarily makes money through a franchising-led model rather than directly operating most restaurants. Its main revenue streams typically include: (1) Franchise royalties and fees: RBI earns ongoing royalties from f...
Restaurant Brands International Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call conveyed broadly positive momentum driven by strong Burger King performance, double-digit EPS growth, robust international expansion, solid free cash flow and active capital returns, alongside tangible progress on leverage and franchisee alignment. Notable issues include Tim Hortons' softer-than-expected Q2 marketing results, the Popeyes U.S. sales decline, FX and commodity(headline beef) pressures, and a modest near-term drag from the Restaurant Holdings segment. Overall, the positives on top-line acceleration, profitability and cash generation substantially outweigh the challenges, with management outlining clear remediation and growth plans.Positive Updates
Consolidated Top-Line and Earnings Growth
Q2 consolidated results: 3.8% same-store sales, 2.9% net restaurant growth, 6.4% system-wide sales growth, 6.7% organic adjusted operating income (AOI) growth and 12.9% adjusted EPS growth (EPS $1.07 vs $0.94 prior year). Year-to-date: 3.5% same-store sales and 8.5% organic AOI growth.
Negative Updates
Tim Hortons Q2 Underperformance vs. Expectations
Tim Hortons Canada same-store sales were essentially flat at +0.1% in Q2; management noted marketing did not perform as anticipated in the quarter and calendar/timing limited growth versus last year’s platform launches.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Top-Line and Earnings Growth
Q2 consolidated results: 3.8% same-store sales, 2.9% net restaurant growth, 6.4% system-wide sales growth, 6.7% organic adjusted operating income (AOI) growth and 12.9% adjusted EPS growth (EPS $1.07 vs $0.94 prior year). Year-to-date: 3.5% same-store sales and 8.5% organic AOI growth.
Read all positive updates
Company Guidance
The team reiterated full‑year 2026 financial guidance and capital targets, calling for segment G&A (ex‑Restaurant Holdings) of about $600–$620 million, net adjusted interest expense roughly flat year‑over‑year at ~$500–$520 million (based on a high‑3% average SOFR affecting <15% of debt), and 2026 CapEx plus cash inducements of around $400 million; Tim Hortons supply‑chain margins are expected roughly in line with 2025 and total Restaurant Holdings AOI is projected at about $10–$20 million for the year. They said the company remains on track to repurchase roughly $500 million of stock in 2026 (Q2 repurchases $137 million; $435 million returned in Q2; ~$750 million returned year‑to‑date), ended Q2 with ~$2.3 billion of liquidity (including ~$1.1 billion cash) and net leverage of 4.1x (S&P upgraded to BB+), and reiterated the path to corporate investment‑grade (low‑to‑mid 3x net leverage by 2028). Additional guidance items: a full‑year adjusted effective tax rate of ~18–19% (Q2 quarter 16.8%, YTD 17.6%), an expected H2 FX headwind of ~ $10 million to AOI and ~$0.02–$0.03 to adjusted EPS, and a continuing target to deliver ~8% organic adjusted operating income growth.Restaurant Brands International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.70B | 9.43B | 8.41B | 7.02B | 6.50B | 5.74B |
| Gross Profit | 4.35B | 3.88B | 3.02B | 2.80B | 2.60B | 2.37B |
| EBITDA | 2.80B | 2.42B | 2.66B | 2.24B | 2.07B | 2.04B |
| Net Income | 1.27B | 776.00M | 1.02B | 1.19B | 1.01B | 838.00M |
Balance Sheet | ||||||
| Total Assets | 25.02B | 25.61B | 24.63B | 23.39B | 22.75B | 23.25B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.16B | 1.33B | 1.14B | 1.18B | 1.09B |
| Total Debt | 15.65B | 17.58B | 15.96B | 14.52B | 14.49B | 14.62B |
| Total Liabilities | 19.63B | 20.46B | 19.79B | 18.66B | 18.48B | 19.39B |
| Stockholders Equity | 3.85B | 3.63B | 3.11B | 2.87B | 2.50B | 2.24B |
Cash Flow | ||||||
| Free Cash Flow | 1.57B | 1.45B | 1.30B | 1.20B | 1.39B | 1.62B |
| Operating Cash Flow | 1.84B | 1.71B | 1.50B | 1.32B | 1.49B | 1.73B |
| Investing Cash Flow | -254.15M | -399.00M | -660.00M | 11.00M | -64.00M | -1.10B |
| Financing Cash Flow | -1.63B | -1.44B | -625.00M | -1.37B | -1.31B | -1.09B |
Restaurant Brands International Risk Analysis
Restaurant Brands International disclosed 30 risk factors in its most recent earnings report. Restaurant Brands International reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Restaurant Brands International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $16.16B | 16.39 | 17.84% | 2.44% | 8.78% | 12.47% | |
73 Outperform | $47.25B | 34.16 | 53.26% | ― | 7.31% | -4.37% | |
70 Outperform | $11.40B | 18.76 | -15.15% | 2.24% | 5.16% | 2.13% | |
69 Neutral | $42.14B | 18.82 | -30.35% | 1.96% | 10.28% | 56.85% | |
68 Neutral | $36.02B | 19.04 | 34.86% | 3.50% | 6.51% | 40.57% | |
64 Neutral | $188.89B | 21.07 | -561.20% | 2.78% | 6.30% | 5.37% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
QSR
Restaurant Brands International
78.07
17.27
28.41%
CMG
Chipotle
37.22
-5.19
-12.24%
DPZ
Domino's Pizza
332.06
-108.41
-24.61%
MCD
McDonald's
260.06
-44.76
-14.68%
YUM
Yum! Brands
150.75
8.03
5.62%
YUMC
Yum China Holdings
44.91
1.59
3.67%
Restaurant Brands International Corporate Events
Business Operations and StrategyStock Buyback
Restaurant Brands International Announces Cash-Funded Unit Repurchase
Positive
Aug 10, 2026
On August 10, 2026, Restaurant Brands International Inc. announced that Restaurant Brands International Limited Partnership received an irrevocable exchange notice from 3G Restaurant Brands Holdings LP, an affiliate of 3G Capital Partners Ltd., to...
Executive/Board ChangesShareholder Meetings
Restaurant Brands Shareholders Back Board, Pay and Auditors
Positive
Jun 3, 2026
At its June 3, 2026 annual meeting of shareholders, Restaurant Brands International shareholders elected ten directors to serve until the close of the 2027 annual meeting or until successors are chosen, reinforcing continuity in the company’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.