Restaurant Brands International Inc.QSR
NYSE • Consumer Cyclical
$77.37
P/E
22.49
PEG
0.20
FCF Yield
—
Rev Growth YoY
+7.3% YoY
Gross Margin
49.6%
Health Score
5/10
D/E Ratio
4.84
Confidence
LOW
Business Snapshot
Restaurant Brands International (QSR) is a global quick-service restaurant company owning the Burger King, Tim Hortons, Popeyes, and Firehouse Subs chains. It operates in the intensely competitive fast-food industry, where scale, brand recognition, and franchise network density create moats – the company generates the bulk of its revenue from franchise royalties, rental income, and supply chain fees rather than company-operated stores. With trailing twelve-month revenue of $9.59 billion, it stands as a large-cap consumer cyclical player. Its defining characteristic is a capital-light, highly franchised business model that historically generates high free cash flow, supported by globally recognised brands.
Financial Health
Gross margin improved to 49.6% in the most recent trailing twelve months from 47.5% a year earlier, while net margin settled at 10.0% — a healthy level for a restaurant holding company. The balance sheet is stretched, with a debt-to-equity ratio of 4.84x and a current ratio of 0.98x, indicating elevated leverage and tight short-term liquidity coverage...
Risk Assessment
- DEBT — Debt/equity of 4.84x is extremely high, exceeding typical restaurant-sector leverage and amplifying interest expense risk.
- LIQUIDITY — The current ratio of 0.98x barely covers short-term obligations, exposing the company to working capital stress in a downturn.
- REVENUE DECELERATION — Quarterly revenue fell 8.2% sequentially against a 7.3% year-over-year gain, a divergence that signals a softening near-term sales trend.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....