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Restaurant Brands International (QSR) AI Stock Analysis
Restaurant Brands International
(TSX:QSR)
The overall score reflects positive business fundamentals—steady revenue growth and strong free cash flow—contrasted with high leverage and declining cash efficiency, which pose financial risks. Boosts from strong segment performance and upbeat earnings outlook are tempered by lackluster technical trends and modest valuation upside. Persistent margin and debt pressures remain the main risks impacting the score.
Restaurant Brands International (QSR) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 25.25B
- Dividend Yield
- 3.54%
- Average Volume (3M)
- 956.97K
- Price to Earnings (P/E)
- 16.8
- Beta (1Y)
- 0.44
- Revenue Growth
- 4.80%
- EPS Growth
- 52.33%
- Country
- Canada
- Employees
- 53,500
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
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 recogniz...
How the Company Makes Money
Restaurant Brands International generates revenue primarily through its franchising model, which allows the company to earn significant fees from franchisees based on sales and royalties. Additionally, it makes money from company-operated restaurants...
Restaurant Brands International Earnings Call Summary
The call was strongly positive. Consolidated sales, organic AOI and adjusted EPS grew, Burger King U.S. delivered exceptional outperformance, International sustained broad-based growth, Tim Hortons improved, and the company continued generating substantial cash and reducing leverage. The principal setbacks were Popeyes' negative same-store sales and delayed return to growth, pressure from beef inflation, higher G&A, and the expected decline in Restaurant Holdings AOI. Management nevertheless expressed confidence in the brands' operating momentum and long-term development pipeline.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For 2026, RBI continues to expect segment G&A, excluding RH, of about $600 million to $620 million; net adjusted interest expense approximately flat year-over-year in the $500 million to $520 million range; CapEx and cash inducements, including capital expenditures, tenant inducements and incentives, around $400 million; Tim Hortons supply chain margins roughly in line with 2025 levels; total RH AOI roughly $10 million to $20 million; and an adjusted tax rate of 18% to 19%, likely towards the lower end of that range. RBI remains on track to repurchase approximately $500 million and return over $1.6 billion of capital to shareholders this year, expects to refranchise a couple of hundred restaurants this year with activity accelerating further into 2027, and is working towards sunsetting restaurant holdings by the end of 2027, achieving corporate investment-grade leverage by 2028 or the low to mid-3x net leverage range, and getting most of the Burger King system to a modern image by 2028, 2029 in that general time frame.
Restaurant Brands International Financial Statement Overview
Summary
Restaurant Brands International demonstrates healthy revenue growth and strong free cash flow, but its financial profile is marked by significant debt leverage and declining profitability margins versus prior years. While the company maintains a solid return on equity and operational profits are steady, high debt levels and falling efficiency in converting profits to cash increase vulnerability to margin pressures or interest rate changes.
Income Statement
72PositiveBalance Sheet
48NeutralCash Flow
71Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.78B | 9.43B | 8.41B | 7.02B | 6.50B | 5.74B |
| Gross Profit | 4.06B | 3.88B | 3.02B | 2.80B | 2.60B | 2.37B |
| EBITDA | 2.94B | 2.50B | 2.66B | 2.24B | 2.07B | 2.04B |
| Net Income | 1.50B | 776.00M | 1.02B | 1.19B | 1.01B | 838.00M |
Balance Sheet | ||||||
| Total Assets | 25.26B | 25.61B | 24.63B | 23.39B | 22.75B | 23.25B |
| Cash, Cash Equivalents and Short-Term Investments | 974.00M | 1.16B | 1.33B | 1.14B | 1.18B | 1.09B |
| Total Debt | 15.46B | 17.58B | 15.96B | 14.52B | 14.49B | 14.62B |
| Total Liabilities | 19.73B | 20.46B | 19.79B | 18.66B | 18.48B | 19.39B |
| Stockholders Equity | 3.94B | 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 | 1.85B | 1.71B | 1.50B | 1.32B | 1.49B | 1.73B |
| Investing Cash Flow | -301.60M | -399.00M | -660.00M | 11.00M | -64.00M | -1.10B |
| Financing Cash Flow | -1.80B | -1.44B | -625.00M | -1.37B | -1.31B | -1.09B |
Restaurant Brands International Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QSR, the sentiment is Negative. The current price of 101.10 is below the 20-day moving average (MA) of 102.98, below the 50-day MA of 104.43, and below the 200-day MA of 101.36, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 22.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QSR.
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.
Latest Risks Added
0 New RisksRestaurant Brands International Peers Comparison
Overall Rating
YUMC83Outperform
YUM72Outperform
MCD68Neutral
CMG66Neutral
DPZ64Neutral- TSE:QSR64Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| YUMC | 83Outperform | $15.68B | 16.71 | 17.84% | 2.42% | 8.78% | 12.47% |
| YUM | 72Outperform | $42.41B | 19.40 | -30.35% | 1.90% | 10.28% | 56.85% |
| MCD | 68Neutral | $182.66B | 20.90 | -561.20% | 2.88% | 6.30% | 5.37% |
| CMG | 66Neutral | $40.34B | 29.80 | 55.68% | ― | 7.86% | -6.16% |
| DPZ | 64Neutral | $10.32B | 17.24 | -15.48% | 2.46% | 4.50% | 5.70% |
| TSE:QSR | 64Neutral | CAD 45.71B | 16.76 | 39.56% | 3.54% | 4.80% | 52.33% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:QSR | Restaurant Brands International | 101.10 | 11.86 | 13.29% | |
| CMG | Chipotle Mexican Grill | 31.89 | 0.38 | 1.21% | |
| DPZ | Domino's Pizza Inc | 313.71 | -81.37 | -20.60% | |
| MCD | McDonald's Corporation | 258.12 | -30.82 | -10.67% | |
| YUM | Yum! Brands | 155.40 | 18.68 | 13.66% | |
| YUMC | Yum China Holdings | 45.78 | 2.81 | 6.54% |
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.
Date of analysis: Sep 20, 2025