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Relative to Consumer Discretionary Sector Median (N=442)
Metric
QSR
Benchmark
P/E Ratio
20.8x
-15%
EV/EBITDA
16.2x
+230%
Price / Book
5.1x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-72.0%
$21.40Spot: $76.39
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
24.8%
Sector: 6.2%
Dividend Analysis audit
INCOME
3.80%
Trailing Yield
$3.80
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
79%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Restaurant Brands International Inc. (QSR) receives a "Hold" rating with a composite score of 51.0/100, ranked #304 out of 4446 stocks. Key factor scores: Quality 50/100, Value 62/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
Restaurant Brands International Inc. (QSR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Restaurant Brands International Inc. Do?
Restaurant Brands International Inc. operates as quick service restaurant company in Canada and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and others. It is also involved in owning and franchising BK, a fast food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, french fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS restaurants quick service restaurants that offer subs, soft drinks, and local specialties. As of February 15, 2022, the company had approximately 29,000 restaurants in 100 countries under the Tim Hortons, Burger King, Popeyes, And Firehouse Subs brands. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Toronto, Canada. Restaurant Brands International Inc. (QSR) is classified as a large-cap stock in the Consumer Discretionary sector, specifically within the Restaurants, Hotels, Motels industry. The company is led by CEO José E. Cil and employs approximately 6,400 people, headquartered in OAKVILLE, Ontario. With a market capitalization of $26.0B, QSR is one of the prominent companies in the Consumer Discretionary sector.
Restaurant Brands International Inc. (QSR) Stock Rating — Hold (April 2026)
As of April 2026, Restaurant Brands International Inc. receives a Hold rating with a composite score of 51.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.QSR ranks #304 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, Restaurant Brands International Inc. ranks #13 of 442 stocks, placing it in the top 10% of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
QSR Stock Price and 52-Week Range
Restaurant Brands International Inc. (QSR) currently trades at $76.39. The stock lost $0.48 (0.6%) in the most recent trading session. The 52-week high for QSR is $75.57, which means the stock is currently trading 1.1% from its annual peak. The 52-week low is $58.71, putting the stock 30.1% above its annual trough. Recent trading volume was 2.4M shares, reflecting moderate market activity.
Is QSR Overvalued or Undervalued? — Valuation Analysis
Restaurant Brands International Inc. (QSR) carries a value factor score of 62/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 20.76x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 15%. The price-to-book ratio stands at 5.14x, versus the sector average of 1.99x. The price-to-sales ratio is 2.86x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, QSR trades at 16.17x EV/EBITDA, versus 4.91x for the sector.
Overall, QSR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Restaurant Brands International Inc. Profitability — ROE, Margins, and Quality Score
Restaurant Brands International Inc. (QSR) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 24.8%, compared to the Consumer Discretionary sector average of 6.2%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 5.0% versus the sector average of 2.5%.
On a margin basis, Restaurant Brands International Inc. reports gross margins of 54.0%, compared to 36.9% for the sector. The operating margin is 23.2% (sector: 3.8%). Net profit margin stands at 13.7%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 17.7% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
QSR Debt, Balance Sheet, and Financial Health
Restaurant Brands International Inc. has a debt-to-equity ratio of 257.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.98x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $13.28B. Cash and equivalents stand at $1.21B.
QSR has a beta of 0.37, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Restaurant Brands International Inc. is 89/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Restaurant Brands International Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Restaurant Brands International Inc. reported revenue of $9.26B and earnings per share (EPS) of $2.36. Net income for the quarter was $1.28B. Gross margin was 54.0%. Operating income came in at $2.16B.
In FY 2025, Restaurant Brands International Inc. reported revenue of $9.43B and earnings per share (EPS) of $2.36. Net income for the quarter was $1.07B. Revenue grew 12.2% year-over-year compared to FY 2024. Operating income came in at $2.20B.
In Q3 2025, Restaurant Brands International Inc. reported revenue of $2.45B and earnings per share (EPS) of $0.96. Net income for the quarter was $436M. Revenue grew 6.9% year-over-year compared to Q3 2024. Operating income came in at $663M.
In Q2 2025, Restaurant Brands International Inc. reported revenue of $2.41B and earnings per share (EPS) of $0.58. Net income for the quarter was $263M. Revenue grew 15.9% year-over-year compared to Q2 2024. Operating income came in at $483M.
Over the past 8 quarters, Restaurant Brands International Inc. has demonstrated a growth trajectory, with revenue expanding from $2.08B to $9.26B. Investors analyzing QSR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
QSR Dividend Yield and Income Analysis
Restaurant Brands International Inc. (QSR) currently pays a dividend yield of 3.8%. At this yield, a $10,000 investment in QSR stock would generate approximately $$380.00 in annual dividend income. The net margin of 13.7% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
QSR Momentum and Technical Analysis Profile
Restaurant Brands International Inc. (QSR) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
QSR vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing QSR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full QSR vs S&P 500 (SPY) comparison to assess how Restaurant Brands International Inc. stacks up against the broader market across all factor dimensions.
QSR Next Earnings Date
No upcoming earnings date has been announced for Restaurant Brands International Inc. (QSR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy QSR? — Investment Thesis Summary
Restaurant Brands International Inc. presents a balanced picture with arguments on both sides. The value score of 62/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 89/100) reduces downside risk.
In summary, Restaurant Brands International Inc. (QSR) earns a Hold rating with a composite score of 51.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on QSR stock.
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Institutional Research Dossier
Restaurant Brands International Inc. (QSR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Restaurant Brands International (QSR). While the company exhibits strong profitability and operates in a relatively stable sector, its high debt levels and mixed growth prospects across its brands temper our enthusiasm. The current valuation appears fair, reflecting both its strengths and weaknesses, making a significant overweight or underweight position unwarranted at this time.
QSR benefits from well-established brands and a franchise-heavy business model that generates consistent cash flow. However, challenges remain in revitalizing certain brands and managing a complex global operation. Investors should closely monitor same-store sales growth, debt reduction efforts, and the successful integration of Firehouse Subs to determine if a more decisive rating is justified in the future.
Business Strategy & Overview
Restaurant Brands International (QSR) operates as a quick-service restaurant (QSR) franchisor, deriving revenue primarily from franchise royalties and, to a lesser extent, from company-owned restaurant sales. The company's strategy revolves around expanding its four core brands: Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs, both domestically and internationally. This expansion is largely achieved through franchising, which allows QSR to leverage the capital and operational expertise of its franchisees while collecting a steady stream of royalty income.
A key element of QSR's strategy is brand management and innovation. Each brand operates with a distinct menu and marketing strategy tailored to its target demographic. The company invests in menu innovation, digital ordering platforms, and restaurant design to enhance the customer experience and drive sales growth. For example, Tim Hortons focuses on its coffee and baked goods offerings, while Burger King emphasizes its flame-grilled burgers. Popeyes differentiates itself with its Louisiana-style fried chicken, and Firehouse Subs offers a variety of specialty subs.
International expansion is a significant growth driver for QSR. The company targets markets with growing middle classes and a strong appetite for Western-style fast food. This expansion is typically achieved through master franchise agreements, where a local partner is granted the exclusive right to develop and operate restaurants in a specific region. This approach allows QSR to enter new markets with minimal capital investment and leverage the local expertise of its partners.
The acquisition of Firehouse Subs in 2021 represents a strategic move to diversify QSR's portfolio and tap into the growing sandwich segment. The company aims to leverage its existing infrastructure and expertise to accelerate the growth of Firehouse Subs, both domestically and internationally. The integration of Firehouse Subs into QSR's existing platform is a key priority.
QSR's business model is highly scalable, as the company primarily generates revenue from franchise royalties rather than direct restaurant operations. This allows QSR to generate high margins and strong cash flow. However, the company is also exposed to the risks associated with franchising, such as franchisee compliance and brand reputation management.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.7%
Sector: 3.3%
+438% VS SCTR
Economic Moat Analysis
Restaurant Brands International possesses a Narrow economic moat, primarily derived from brand intangible assets. The strength of its brands, particularly Tim Hortons and Burger King, allows the company to command premium pricing and maintain customer loyalty in certain markets. These brands have established a strong presence and recognition over decades, creating a barrier to entry for new competitors.
The moat surrounding Tim Hortons is particularly pronounced in Canada, where it holds a dominant market share in the coffee and baked goods segment. This brand recognition and customer loyalty provide a significant competitive advantage. Burger King, while facing stiffer competition in the global burger market, still benefits from its established brand and global presence.
Popeyes Louisiana Kitchen has also carved out a niche for itself with its distinctive Louisiana-style fried chicken. The brand's strong performance in recent years suggests that it is gaining traction and building a stronger moat. Firehouse Subs, while a smaller brand, has the potential to contribute to QSR's overall moat by diversifying its portfolio and tapping into the sandwich segment.
However, the moat is not wide due to the intense competition in the QSR industry. The restaurant industry is characterized by low switching costs and a plethora of alternatives, making it difficult for any single company to maintain a dominant position. Competitors such as McDonald's, Starbucks, and Wendy's pose a constant threat to QSR's market share.
Furthermore, QSR's reliance on franchising exposes it to the risk of franchisee compliance and brand reputation issues. Negative publicity or poor operational execution by franchisees can damage the brand's reputation and erode its moat. The company must invest in training, quality control, and brand management to mitigate these risks.
While QSR's brands provide a competitive advantage, the narrowness of the moat reflects the challenges of maintaining customer loyalty and market share in a highly competitive industry. The company must continue to invest in brand building, menu innovation, and operational excellence to defend its position and widen its moat.
Financial Health & Profitability
Restaurant Brands International demonstrates a mixed financial profile. The company exhibits strong profitability, as evidenced by its high gross margin (54.0%), operating margin (23.2%), and net margin (13.7%), all significantly exceeding the sector averages. The ROE of 24.8% is also substantially higher than the sector average of 5.8%, indicating efficient use of equity. Revenue growth is also strong at 17.7% compared to the sector average of 3.2%.
However, QSR carries a significant debt burden. With a total debt of $13.28 billion and a debt-to-equity ratio of 257.00, the company is highly leveraged compared to the sector average of 91.00. This high level of debt could constrain the company's ability to invest in growth initiatives or return capital to shareholders. The current ratio of 0.98 suggests a tight liquidity position, although the consistent cash flow generation from its franchise model provides some comfort.
Analyzing the quarterly financial history reveals a trend of increasing revenue and net income over the past few years. Revenue has grown from $7.02 billion in FY2023 to $9.43 billion in FY2025. Net income has fluctuated, but remains above $1 billion. The operating margin has remained relatively stable, indicating consistent profitability.
Free cash flow generation, while not available for all periods, is a key metric to monitor. The TTM free cash flow of $789.29 million is a positive sign, but it is important to assess the sustainability of this cash flow in the future. The company's ability to generate free cash flow will be crucial for debt reduction and future growth investments.
Overall, QSR's financial health is characterized by strong profitability and revenue growth, but also by high leverage. The company's ability to manage its debt burden and sustain its cash flow generation will be critical for its long-term financial performance.
Valuation Assessment
Restaurant Brands International's valuation presents a mixed picture. The company's P/E ratio of 31.3x is slightly higher than the sector average of 28.0x, suggesting that the stock is trading at a premium to its peers. However, the EV/EBITDA ratio of 3.9x is significantly lower than the sector average of 5.3x, indicating that the company may be undervalued on an enterprise value basis.
The current valuation reflects a balance between QSR's strong profitability and growth prospects and its high debt levels. The premium P/E ratio suggests that investors are willing to pay a higher price for the company's earnings due to its brand strength and growth potential. However, the lower EV/EBITDA ratio may reflect concerns about the company's debt burden and its impact on future cash flow.
The free cash flow yield, based on the TTM free cash flow of $789.29 million and a market cap of $25.55 billion, is approximately 3.1%. This yield is relatively low, suggesting that the stock may not be particularly attractive to value investors seeking high current income.
Compared to its historical valuation, QSR's current P/E ratio is in line with its historical average. However, the EV/EBITDA ratio is slightly below its historical average, potentially indicating some undervaluation. The stock's valuation has fluctuated over time, reflecting changes in investor sentiment and the company's financial performance.
Overall, QSR's valuation appears to be fair, reflecting both its strengths and weaknesses. The stock is not significantly overvalued or undervalued, suggesting that the current price is a reasonable reflection of its intrinsic value. Investors should closely monitor the company's financial performance and growth prospects to determine if a more decisive valuation is warranted in the future.
Risk & Uncertainty
Restaurant Brands International faces several key risks. One significant risk is franchisee relations. QSR relies heavily on its franchisees to operate its restaurants and maintain brand standards. Disputes with franchisees, poor operational execution by franchisees, or negative publicity involving franchisees can damage the brand's reputation and erode its competitive advantage. Maintaining strong relationships with franchisees and ensuring compliance with brand standards is crucial for QSR's success.
Another risk is intense competition in the QSR industry. The restaurant industry is highly competitive, with numerous alternatives available to consumers. QSR faces competition from other large QSR chains, as well as from smaller regional players and independent restaurants. Maintaining market share and driving sales growth in this competitive environment requires constant innovation, effective marketing, and operational excellence.
High debt levels pose a financial risk to QSR. The company's significant debt burden could constrain its ability to invest in growth initiatives, return capital to shareholders, or respond to unexpected challenges. Rising interest rates could also increase the company's debt servicing costs and further strain its financial resources. Managing its debt burden and reducing leverage is a key priority for QSR.
Food safety and health concerns represent another risk. Any food safety incidents or health concerns related to QSR's restaurants could damage the brand's reputation and lead to a decline in sales. Maintaining strict food safety standards and complying with health regulations is essential for protecting the brand and ensuring customer safety.
Finally, macroeconomic factors, such as economic downturns, changes in consumer spending patterns, and fluctuations in commodity prices, can impact QSR's financial performance. A recession or a decline in consumer confidence could lead to a decrease in restaurant sales. Rising commodity prices could increase the company's food costs and reduce its profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWQSR's franchise model generates consistent cash flow and allows for scalable growth with limited capital investment, making it an attractive investment in the long term.
BULL VIEWThe company's strong brand portfolio, including Tim Hortons, Burger King, and Popeyes, provides a competitive advantage and allows for premium pricing in certain markets.
BULL VIEWQSR's international expansion strategy offers significant growth opportunities, as the company targets markets with growing middle classes and a strong appetite for Western-style fast food.
The Bear Case
BEAR VIEWQSR's high debt levels pose a significant financial risk and could constrain its ability to invest in growth initiatives or return capital to shareholders.
BEAR VIEWIntense competition in the QSR industry and potential franchisee disputes could erode QSR's market share and damage its brand reputation.
BEAR VIEWThe company's reliance on franchising exposes it to the risk of franchisee compliance and brand reputation issues, which could negatively impact its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score QSR and 4,400+ other equities.
Restaurant Brands International Inc. exhibits a 333% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.0%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
54.0%
Sector: 36.9%
Operating Margin
Core business profitability
23.2%
Sector: 3.8%
Net Margin
Bottom-line profitability
13.7%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $380 annually in dividends at the current trailing rate.
