Debt-to-Equity Ratio

The debt-to-equity ratio measures a company’s total liabilities relative to shareholders’ equity; at 3.55x, Restaurant Brands International has $3.55 of debt for every $1 of equity, indicating heavy reliance on borrowing.

This is far above the sector median of 0.73x, placing the company in the 90th percentile among Consumer Cyclical peers—among the most leveraged. The year-over-year change is not available, but the ratio decreased by 15.3% quarter over quarter, falling from 4.19x to 3.55x. A high level combined with a declining trend suggests that while the balance sheet remains leveraged, the company is actively reducing its debt burden, lowering near-term financial risk. This dynamic presents a mixed picture: elevated leverage creates vulnerability to interest rate moves, but the rapid reduction signals improving capital structure. The metric supports the overall NEUTRAL verdict because the improving trend offsets some of the concern from the high absolute level, neither warranting a bullish nor bearish tilt.

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