Morningstar

Restaurant Brands International Inc QSR

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Stock XTSE Rating as of
CAD 96.40 +0.95 (1.00%)
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As of Delayed Price Closed

Company Report

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Strong International Prospects Underpin RBI Investment Thesis Even as Burger King US Struggles

Sean Dunlop

Restaurant Brands International appears to be taking adequate steps to meet the changing demands of its customers, investing in store reimaging, loyalty programs, and digital ordering to shore up its brands' competitive positions, leaning into its scale-driven cost advantage. Its international business remains the gem of the RBI portfolio, and should only grow more important to the firm's consolidated results over the next few years.

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Price vs Fair Value

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QSR is trading at a 142% premium.
Price
CAD 96.40
Fair Value
CAD 185.00
Uncertainty
Medium
1-Star Price
CAD 421.67
5-Star Price
CAD 19.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Improvements in profitability across brands in 2023 set the stage for a stronger development appetite in 2024 and beyond.

Bears

A widening gap between restaurant and grocery store inflation may render fast food more sensitive to downturns in consumer spending than during prior economic cycles.

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News

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Trading Information

Previous Close Price
CAD 95.45
Day Range
CAD 95.58–97.03
52-Week Range
CAD 84.73–112.12
Bid/Ask
CAD 96.27 / CAD 96.47
Market Cap
CAD 31.20 Bil
Volume/Avg
658,679 / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
22.07
Price/Sales
4.32
Dividend Yield (Trailing)
3.21%
Dividend Yield (Forward)
3.24%
Total Yield
5.37%

Company Profile

Restaurant Brands International is one of the largest restaurant companies in the world, with approximately $43 billion in 2023 systemwide sales across a footprint that spanned more than 31,000 restaurants and more than 100 countries. The firm generates revenue primarily from retail sales at its company-owned restaurants, royalty fees and lease income from franchised stores, and from its Tim Hortons supply chain operations. Formed in 2014 after 3G Capital’s acquisition of Tim Hortons International, the RBI portfolio is split among Burger King (7,144 units), Tim Hortons (4,525 units), Popeyes Louisiana Kitchen (3,394 units), Firehouse Subs (1,265 units), and international franchise units of those banners (14,742) as of year-end 2023.
Sector
Consumer Cyclical
Industry
Restaurants
Stock Style Box
Large Core
Total Number of Employees
9,000
Website
https://www.rbi.com

Competitors

Valuation

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Metric
QSR
YUMC
YUM
Price/Earnings (Normalized)
 22.0721.6026.92
Price/Book Value
 7.273.01—
Price/Sales
 4.321.675.61
Price/Cash Flow
 20.1710.2922.94
Price/Earnings
QSR
YUMC
YUM

Financial Strength

Metric
QSR
YUMC
YUM
Quick Ratio
 0.641.041.10
Current Ratio
 0.781.231.44
Interest Coverage
 3.59—4.71
Quick Ratio
QSR
YUMC
YUM

Profitability

Metric
QSR
YUMC
YUM
Return on Assets (Normalized)
 6.28%7.25%24.13%
Return on Equity (Normalized)
 50.32%13.62%—
Return on Invested Capital (Normalized)
 10.00%7.78%54.12%
Return on Assets
QSR
YUMC
YUM

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Morningstar Rating for Stocks
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LwtzqlnDrzgvc$23.2 Bil
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