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Restaurant Brands International
(TSX:QSR)
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Rating:64Neutral
Price Target:
C$94.00
▼(-13.06% Downside)
Action:Reiterated
Date:09/21/25
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.
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 (QSR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$50.41B
Dividend Yield3.18%
Average Volume (3M)687.40K
Price to Earnings (P/E)19.6
Beta (1Y)0.39
Revenue Growth5.56%
EPS Growth39.38%
CountryCA
Employees53,500
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)4.10
Shares Outstanding348,758,060
10 Day Avg. Volume797,255
30 Day Avg. Volume687,397
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$116.40Price Target Upside7.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)5.04
Revenue Forecast (FY)C$12.80B
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 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 restaura...
Restaurant Brands International Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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
72
Positive
Balance Sheet
48
Neutral
Cash Flow
71
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 Technical Analysis
Positive
108.12
Price Trends
106.06
Positive
105.20
Positive
100.57
Positive
Market Momentum
1.37
Negative
60.33
Neutral
51.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QSR, the sentiment is Positive. The current price of 108.12 is below the 20-day moving average (MA) of 108.20, above the 50-day MA of 106.06, and above the 200-day MA of 100.57, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 51.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
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 | $14.93B | 15.91 | 17.84% | 2.55% | 8.78% | 12.47% | |
72 Outperform | $41.13B | 18.82 | -30.35% | 1.94% | 10.28% | 56.85% | |
70 Outperform | $11.28B | 19.27 | -15.15% | 2.19% | 5.16% | 2.13% | |
64 Neutral | C$50.41B | 19.55 | 34.86% | 3.18% | 5.56% | 39.38% | |
64 Neutral | $180.94B | 20.72 | -561.20% | 2.91% | 6.30% | 5.37% | |
62 Neutral | $46.77B | 33.89 | 53.26% | ― | 7.31% | -4.37% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:QSR
Restaurant Brands International
110.91
28.36
34.36%
CMG
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DPZ
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341.08
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MCD
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255.69
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-16.16%
YUM
Yum! Brands
150.71
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3.30%
YUMC
Yum China Holdings
43.60
0.21
0.49%
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.