Restaurant Brands International Inc. (QSR) AI Stock Analysis
QSR AI stock analysis summary
AI ResearchRestaurant Brands International Inc. operates a global network of quick service restaurant chains including Tim Hortons, Burger King, Popeyes, and Firehouse Subs. The company generated $9.70B in trailing twelve-month revenue with a 27.7% operating margin, while carrying $15.65B in total debt. Its shares trade at a forward P/E of 11.7x and offer a 3.48% dividend yield.
- Market cap
- $34.27B
- Revenue (TTM)
- $9.70B
- P/E
- 18.8x fwd 11.7x
- 1Y return
- 15.0% S&P 500 16.8%
- Avg. target
- $86.00 15.0% vs last close
Bull case
- Quarterly earnings jumped 151.2% year-over-year in the period ended June 30, 2026.
- Free cash flow generation remained solid at $1.45B in FY2025.
- The forward P/E multiple of 11.7x sits below the peer group median of 14.1x.
Bear case
- Total debt stands at $15.65B, leading to a high debt-to-equity ratio of 4.07.
- Net income dropped from $1.02B in FY2024 to $776.0M in FY2025.
- Analysts project revenue growth to slow significantly to 0.4% in the next fiscal year.
What Restaurant Brands International does
Restaurant Brands International Inc. is a global quick service restaurant company with operations divided into four primary brands: Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs. Tim Hortons offers coffee, tea, specialty drinks, donuts, bagels, and sandwiches. Burger King focuses on flame-grilled hamburgers, chicken sandwiches, and french fries. Popeyes serves Louisiana-style fried chicken and seafood, while Firehouse Subs provides subs and specialty sandwiches. The company operates and franchises approximately 29,000 restaurants across 100 countries.
Growth and profitability
Annual revenue expanded from $5.74B in FY2021 to $9.43B in FY2025, representing a 5-year revenue CAGR of 13.7%. Operating margin was 23.7% in FY2025, compared to 32.7% in FY2021, while net income stood at $776.0M. Over the trailing twelve months, revenue reached $9.70B with an operating margin of 27.7% and net margin of 13.1%. In the latest quarter ended June 30, 2026, revenue increased 4.6% year-over-year, and earnings grew 151.2% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, the company held $1.06B in cash and short-term investments against $15.65B in total debt, resulting in net debt of $14.59B and a debt-to-equity ratio of 4.07. Current ratio was 1.01, and shareholders' equity was $3.85B. In FY2025, operating cash flow was $1.71B and free cash flow was $1.45B. Capital expenditures totaled $265.0M, while dividend payments consumed $1.11B.
Valuation and performance
At $74.81, the company carries a market capitalization of $34.27B and an enterprise value of $39.68B. Its trailing P/E of 18.8x is slightly above the 18.0x median of its US-listed Consumer Cyclical peers, but its forward P/E of 11.7x is lower than the peer median of 14.1x. Its EV/EBITDA of 13.6x compares to the peer median of 11.1x. Over the past year, the stock returned 15.0%, trailing the S&P 500 (SPY) return of 16.8%.
QSR dividend
The company pays a quarterly dividend totaling $2.60 annually, yielding 3.48% with a payout ratio of 65.6%. Restaurant Brands International has paid dividends for 12 consecutive years, delivering a 5-year annualized dividend growth rate of 3.6%. The last ex-dividend date was September 18, 2026.
What analysts expect
Wall Street coverage consists of 14 Strong Buy, 3 Buy, 9 Hold, and 1 Sell recommendations. The mean price target of $86.00 implies 15.0% upside from the last close of $74.81. Analysts forecast FY2026 revenue of $9.86B and EPS of $4.06. The company beat EPS estimates in each of the last 4 quarters, with its next earnings release scheduled for October 29, 2026.
Key risks and what to watch
- The balance sheet is heavily leveraged with net debt of $14.59B relative to $1.06B in cash.
- Operating margin declined from 32.7% in FY2021 to 23.7% in FY2025.
- A high dividend payout ratio of 65.6% requires sustained free cash flow to maintain distributions.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this QSR AI stock analysis
This page is an AI-written research summary of Restaurant Brands International Inc. (QSR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: QSR income statement, QSR balance sheet, QSR key metrics, QSR analyst forecast, QSR chart. See the QSR stock overview for the latest quote and news.
QSR AI stock analysis FAQ
What brands does Restaurant Brands International own?
The company operates four main brands: Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs across approximately 29,000 restaurants.
What is QSR's dividend yield and payment schedule?
The stock pays an annual forward dividend of $2.60 per share, distributed quarterly, yielding 3.48%.
How much debt does the company have?
As of June 30, 2026, Restaurant Brands International had $15.65B in total debt, $1.06B in cash, and net debt of $14.59B.
When does Restaurant Brands International report earnings next?
The company's next earnings report is scheduled for October 29, 2026.