Restaurant Brands International Inc. (QSR) Stock Analysis and Metrics

Restaurant Brands International

NYSE: QSR

$72.47 ▲ +0.09 (+0.12%)

At close: Jul 24, 2026 · 4:02 PM UTC

Financial Ratios

Market Cap25.26 Bn

P/E26.45

P/S2.63

Div. Yield0.04

ROIC (Qtr)0.02

Total Debt (Qtr)13.30 Bn

Revenue Growth (1y) (Qtr)7.35

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About

Restaurant Brands International Inc. is one of the world’s largest quick service restaurant companies operating a portfolio of four iconic brands: Tim Hortons, Burger King, Popeyes and Firehouse Subs. The company franchises and operates thousands of restaurants across more than 120 countries and territories, delivering food and beverage offerings that span coffee, baked goods, hamburgers, chicken, and specialty sandwiches. Its core business centers on providing consistent quality, service and convenience to guests while supporting a predominantly franchised model.

Restaurant Brands International Inc. generates revenue primarily through franchise royalties, initial franchise fees, and rental income from properties leased to franchisees. It also earns sales from the small proportion of company‑owned restaurants, which serve as test sites and operational training locations. Additional income comes from advertising fund contributions paid by franchisees and from supply chain activities such as coffee roasting and product distribution for its Tim Hortons segment.

The company operates through the following six operating and reportable segments:

• Tim Hortons: Operations of our Tim Hortons brand in Canada and the U. S.

• Burger King: Operations of our Burger King brand in the U. S. and Canada, excluding results of Burger King restaurants acquired as part of the Carrols Acquisition.

• Popeyes Louisiana Kitchen: Operations of our Popeyes brand in the U. S. and Canada, including the Popeyes restaurants acquired as part of the Carrols Acquisition.

• Firehouse Subs: Operations of our Firehouse Subs brand in the U. S. and Canada.

• International: Operations of each of our brands outside the U. S. and Canada, excluding results of Popeyes China and Firehouse Subs Brazil restaurants.

• Restaurant Holdings: Operations of Burger King restaurants acquired as part of the Carrols Acquisition and the operations of PLK China and FHS Brazil restaurants.

Restaurant Brands International Inc. holds a leading position in the global quick service restaurant industry, ranking among the top chains by system‑wide sales and restaurant count. Its competitive advantages include a diversified brand portfolio that captures multiple dayparts, a highly franchised scale that reduces capital intensity, and strong operational support systems that promote consistency across markets. The company faces competition from established players such as McDonald’s, Yum! Brands and Restaurant Brands International’s peers, as well as from independent operators and emerging fast‑casual concepts.

Restaurant Brands International Inc. serves a broad base of individual consumers seeking quick, affordable meals and beverages. Its customers range from morning commuters and families to late‑night diners, encompassing diverse demographics across urban, suburban and rural locations in the markets where its brands operate.

Investment Thesis

▲ Bull case

Restaurant Brands International is positioned for sustained growth driven by the successful execution of its multi-year turnaround strategy at Burger King U.S., which is now translating into strong comparable sales growth and repeat visit momentum. The company reported 5.8% comparable sales growth in the U.S. Burger King segment during Q1 FY26, significantly outperforming the industry and reflecting the impact of the 'Reclaim the Flame' initiative. This turnaround is not reliant on short-term promotions but is built on four years of foundational work improving restaurant standards, guest experience quality, and operational consistency, which is now enabling brand elevation efforts like the Elevated Whopper to resonate effectively with consumers. Management highlighted that guest feedback from over 1,800 personal calls and 70,000 total incoming calls directly informed menu and experience improvements, creating a virtuous cycle of trust and engagement. The elevated Whopper, featuring a glazed bun, creamier mayo, and clamshell packaging, is driving the highest average unit volumes in over three years, indicating genuine product acceptance rather than promotional lift. Furthermore, the company is seeing strong repeat rates following promotions like SpongeBob and Mandalorian, signaling improved guest satisfaction and loyalty, which should sustain traffic and sales momentum beyond initial trial. This underlying strength in guest experience and product perception provides a durable foundation for continued outperformance in the burger QSR segment, with management expressing confidence that they are still in the early innings of this transformation and have years of runway ahead to grow the brand through continued remodeling, menu innovation, and family-focused initiatives like the $3.99 King Junior Meals, which are reengaging a key demographic and driving higher combo incidence.
The International segment represents a powerful and underappreciated long-term growth engine for Restaurant Brands International, delivering consistent, high-quality expansion that is increasingly supported by strategic partnerships and localized innovation. In Q1 FY26, International achieved 5.7% comparable sales growth and 11.1% system-wide sales growth, marking the 20th consecutive quarter of positive comparable sales and reinforcing its role as a reliable profit contributor, representing 29% of operating profit. This performance was broad-based across key markets including Burger King in Spain, Germany, Australia, Brazil, China, Korea, and Japan, driven by a balanced strategy of menu innovation and everyday value positioning. Notably, the company recently closed its joint venture with CPE for Burger King China, which injected $350 million of primary capital to fully fund development over the next five years, setting the stage for a return to modestly positive net restaurant growth in 2026 and positioning the business for double-digit comparable sales growth and margin improvement as seen in the early results. The team in China is already demonstrating expertise in optimizing supply chain, enhancing marketing, and reducing build costs, which aligns with the company's Investor Day goal of BK China being a key component in achieving 5%+ net restaurant growth by 2028. Beyond China, Popeyes China is working to solidify brand positioning under a new long-term operator within the next two years, presenting another avenue for accelerated development. The International business benefits from scaled markets, strong franchisee alignment, and a pipeline of locally relevant innovations—such as baby burgers in Germany and Spain, Garlic Bulgogi Maximum Burger in Korea, and Natell is coffee in Australia—that create guest excitement and drive incremental visits without over-reliance on discounting. This structural strength in international operations, combined with disciplined execution and a clear path to profitability, suggests the market may be underestimating the segment's ability to deliver sustained high-teens system-wide sales growth and contribute meaningfully to overall corporate growth targets through 2028.
Restaurant Brands International is creating significant shareholder value through a disciplined capital allocation strategy that combines growing internal cash flow generation with the resumption of share repurchases, signaling management's conviction in the company's intrinsic value and long-term prospects. In Q1 FY26, the company generated nearly $200 million of free cash flow and returned approximately $315 million to shareholders through dividends and share repurchases, including the resumption of buybacks in March for the first time in over two years, with $60 million repurchased through April 30. Management reiterated its expectation to repurchase approximately $500 million for the full year 2026 through a programmatic approach, supported by a strong balance sheet featuring $1 billion in cash and total liquidity of $2.3 billion at quarter-end. This capital return is being funded by robust financial performance, including 10.7% organic AOI growth and 14.6% nominal adjusted EPS growth, driven by top-line momentum, cost discipline, and specific tailwinds such as $12 million in net bad debt recoveries (primarily international) and a $12 million decline in segment G&A. The company remains on track to deliver roughly 8%+ organic AOI growth annually through 2028, supported by its long-term algorithm of approximately 3% same-store sales and accelerating net restaurant growth, with a target of 1,800 net new restaurants per year by 2028. Furthermore, the company is progressing toward its goal of achieving investment-grade leverage by 2028, currently at a net leverage ratio of 4.2x, down from 4.7x year-over-year, reflecting improving credit metrics. The combination of growing profitability, strengthening balance sheet, and active share repurchases suggests the market may be overlooking the compounding effect of capital returns on earnings per share and the signal that management views the stock as undervalued, which could support multiple expansion and sustained total shareholder returns in the double-digit range as originally targeted.

Restaurant Brands International is positioned for sustained growth driven by the successful execution of its multi-year turnaround strategy at Burger King U.S., which is now translating into strong comparable sales growth and repeat visit momentum. The company reported 5.8% comparable sales growth in the U.S. Burger King segment during Q1 FY26, significantly outperforming the industry and reflecting the impact of the 'Reclaim the Flame' initiative. This turnaround is not reliant on short-term promotions but is built on four years of foundational work improving restaurant standards, guest experience quality, and operational consistency, which is now enabling brand elevation efforts like the Elevated Whopper to resonate effectively with consumers. Management highlighted that guest feedback from over 1,800 personal calls and 70,000 total incoming calls directly informed menu and experience improvements, creating a virtuous cycle of trust and engagement. The elevated Whopper, featuring a glazed bun, creamier mayo, and clamshell packaging, is driving the highest average unit volumes in over three years, indicating genuine product acceptance rather than promotional lift. Furthermore, the company is seeing strong repeat rates following promotions like SpongeBob and Mandalorian, signaling improved guest satisfaction and loyalty, which should sustain traffic and sales momentum beyond initial trial. This underlying strength in guest experience and product perception provides a durable foundation for continued outperformance in the burger QSR segment, with management expressing confidence that they are still in the early innings of this transformation and have years of runway ahead to grow the brand through continued remodeling, menu innovation, and family-focused initiatives like the $3.99 King Junior Meals, which are reengaging a key demographic and driving higher combo incidence.
The International segment represents a powerful and underappreciated long-term growth engine for Restaurant Brands International, delivering consistent, high-quality expansion that is increasingly supported by strategic partnerships and localized innovation. In Q1 FY26, International achieved 5.7% comparable sales growth and 11.1% system-wide sales growth, marking the 20th consecutive quarter of positive comparable sales and reinforcing its role as a reliable profit contributor, representing 29% of operating profit. This performance was broad-based across key markets including Burger King in Spain, Germany, Australia, Brazil, China, Korea, and Japan, driven by a balanced strategy of menu innovation and everyday value positioning. Notably, the company recently closed its joint venture with CPE for Burger King China, which injected $350 million of primary capital to fully fund development over the next five years, setting the stage for a return to modestly positive net restaurant growth in 2026 and positioning the business for double-digit comparable sales growth and margin improvement as seen in the early results. The team in China is already demonstrating expertise in optimizing supply chain, enhancing marketing, and reducing build costs, which aligns with the company's Investor Day goal of BK China being a key component in achieving 5%+ net restaurant growth by 2028. Beyond China, Popeyes China is working to solidify brand positioning under a new long-term operator within the next two years, presenting another avenue for accelerated development. The International business benefits from scaled markets, strong franchisee alignment, and a pipeline of locally relevant innovations—such as baby burgers in Germany and Spain, Garlic Bulgogi Maximum Burger in Korea, and Natell is coffee in Australia—that create guest excitement and drive incremental visits without over-reliance on discounting. This structural strength in international operations, combined with disciplined execution and a clear path to profitability, suggests the market may be underestimating the segment's ability to deliver sustained high-teens system-wide sales growth and contribute meaningfully to overall corporate growth targets through 2028.
Restaurant Brands International is creating significant shareholder value through a disciplined capital allocation strategy that combines growing internal cash flow generation with the resumption of share repurchases, signaling management's conviction in the company's intrinsic value and long-term prospects. In Q1 FY26, the company generated nearly $200 million of free cash flow and returned approximately $315 million to shareholders through dividends and share repurchases, including the resumption of buybacks in March for the first time in over two years, with $60 million repurchased through April 30. Management reiterated its expectation to repurchase approximately $500 million for the full year 2026 through a programmatic approach, supported by a strong balance sheet featuring $1 billion in cash and total liquidity of $2.3 billion at quarter-end. This capital return is being funded by robust financial performance, including 10.7% organic AOI growth and 14.6% nominal adjusted EPS growth, driven by top-line momentum, cost discipline, and specific tailwinds such as $12 million in net bad debt recoveries (primarily international) and a $12 million decline in segment G&A. The company remains on track to deliver roughly 8%+ organic AOI growth annually through 2028, supported by its long-term algorithm of approximately 3% same-store sales and accelerating net restaurant growth, with a target of 1,800 net new restaurants per year by 2028. Furthermore, the company is progressing toward its goal of achieving investment-grade leverage by 2028, currently at a net leverage ratio of 4.2x, down from 4.7x year-over-year, reflecting improving credit metrics. The combination of growing profitability, strengthening balance sheet, and active share repurchases suggests the market may be overlooking the compounding effect of capital returns on earnings per share and the signal that management views the stock as undervalued, which could support multiple expansion and sustained total shareholder returns in the double-digit range as originally targeted.

▼ Bear case

Restaurant Brands International faces significant and persistent challenges in the Popeyes U.S. segment that threaten to undermine portfolio-wide performance, with comparable sales declining 6.5% in Q1 FY26—far worse than the 1.5% decline anticipated by analysts—and marking the chain's biggest quarterly drop in years. This underperformance is not merely a temporary setback but reflects deeper structural issues, including intense competition in the growing chicken category, shifting consumer preferences toward value, and operational inconsistencies that have eroded guest satisfaction and product quality. While management has outlined a clear three-pillar plan to address these issues—improving in-restaurant execution, narrowing focus on core offerings (bone-in chicken, tenders, sandwich), and rebuilding a consistent everyday value proposition—the turnaround remains in early stages, with tangible improvements in product satisfaction (e.g., tenders spec tightening rolled out to over one-third of the system) not yet translating into top-line results. The company acknowledged that it will take time for these operational changes to impact sales, explicitly stating confidence in a return to positive comparable sales only in the second half of 2026, which leaves the segment as a material drag on near-term performance. Moreover, the Popeyes U.S. segment represents approximately 18% of operating profit, meaning its struggles have an outsized impact on overall profitability, and the ongoing need for increased field support, manager rallies, and franchisee alignment efforts suggests the fix will require sustained investment and time. The competitive landscape is further complicated by the success of other chicken operators, which management acknowledges creates healthy tension but also implies Popeyes must continuously improve just to maintain share, let alone grow. Until the turnaround gains measurable momentum, the segment remains a key risk to achieving the company's broader financial targets, particularly if execution lags or value-conscious consumers continue to trade down to alternatives.
Restaurant Brands International's Tim Hortons business in Canada is vulnerable to prolonged macroeconomic headwinds that could constrain its growth trajectory despite its historical resilience, with comparable sales growth of only 1.5% in Q1 FY26—below the 2.5% analyst estimate and reflecting a challenging environment marked by severe winter weather and softer consumer confidence. Although Tim Hortons delivered its 20th consecutive quarter of positive comparable sales and outperformed the flat QSR industry, the company acknowledged that snowstorms in January and broader economic concerns weighed on sales, and while management expressed confidence in outperforming through cycles, the reliance on incremental investments—such as 300-plus remodels and increased new restaurant openings—may not be sufficient if consumer spending remains depressed due to factors like elevated gas prices or broader economic uncertainty. The company's strategy to drive growth through cold beverage innovation (up 10% year-over-year), breakfast leadership (now #1 in Brand Health's best breakfast ranking), and the upcoming loyalty partnership with Canadian Tire is promising, but these initiatives depend on consumer willingness to spend, which could be curtailed if macroeconomic pressures persist. Furthermore, while Tim Hortons benefits from strong brand loyalty and unit economics, its growth is inherently tied to the Canadian consumer, and any prolonged downturn in discretionary spending—potentially exacerbated by geopolitical tensions or energy cost volatility—could limit the effectiveness of operational and marketing initiatives. The business model, while defensible, may not generate the acceleration needed to offset weaknesses elsewhere in the portfolio if the Canadian macro environment remains subdued, making Tim Hortons less of a reliable growth engine than its historical consistency might suggest.
Restaurant Brands International faces mounting cost pressures, particularly from persistent beef inflation, that could compress franchisee profitability and undermine the sustainability of its growth strategy, especially in the Burger King U.S. and Popeyes segments, where beef constitutes a significant portion of the food basket. Although management expects beef cost relief to emerge closer to 2027 as part of a herd rebuilding cycle, the current elevated level of beef costs remains a headwind, contributing to high single-digit food cost increases in Q1 FY26 and putting pressure on franchisee margins despite top-line sales growth. This dynamic was acknowledged in the Q&A, where management noted that while Carrols margin expansion occurred due to top-line sales overcoming inflation, the broader system continues to face pressure, and relief on the food cost side is not expected until later in the decade. The company's strategy of investing in remodels and restaurant upgrades—critical to sustaining the Burger King turnaround—depends on franchisee profitability and willingness to reinvest, which could be hampered if beef costs remain elevated and squeeze unit-level economics. Furthermore, the Tim Hortons supply chain margins are expected to remain roughly in line with 2025 levels, offering little relief from cost pressures in that segment. While the company has benefited from specific tailwinds like bad debt recoveries and G&A savings, these are not sustainable sources of AOI growth, and the long-term algorithm of 8%+ organic AOI growth relies on consistent same-store sales and net restaurant expansion, both of which could be strained if franchisees struggle to maintain profitability amid ongoing commodity volatility. Until beef costs normalize, the company's ability to deliver predictable earnings growth and fund its ambitious refranchising and remodeling plans may be constrained, representing a material risk to the achievement of its 2028 financial targets.

Restaurant Brands International faces significant and persistent challenges in the Popeyes U.S. segment that threaten to undermine portfolio-wide performance, with comparable sales declining 6.5% in Q1 FY26—far worse than the 1.5% decline anticipated by analysts—and marking the chain's biggest quarterly drop in years. This underperformance is not merely a temporary setback but reflects deeper structural issues, including intense competition in the growing chicken category, shifting consumer preferences toward value, and operational inconsistencies that have eroded guest satisfaction and product quality. While management has outlined a clear three-pillar plan to address these issues—improving in-restaurant execution, narrowing focus on core offerings (bone-in chicken, tenders, sandwich), and rebuilding a consistent everyday value proposition—the turnaround remains in early stages, with tangible improvements in product satisfaction (e.g., tenders spec tightening rolled out to over one-third of the system) not yet translating into top-line results. The company acknowledged that it will take time for these operational changes to impact sales, explicitly stating confidence in a return to positive comparable sales only in the second half of 2026, which leaves the segment as a material drag on near-term performance. Moreover, the Popeyes U.S. segment represents approximately 18% of operating profit, meaning its struggles have an outsized impact on overall profitability, and the ongoing need for increased field support, manager rallies, and franchisee alignment efforts suggests the fix will require sustained investment and time. The competitive landscape is further complicated by the success of other chicken operators, which management acknowledges creates healthy tension but also implies Popeyes must continuously improve just to maintain share, let alone grow. Until the turnaround gains measurable momentum, the segment remains a key risk to achieving the company's broader financial targets, particularly if execution lags or value-conscious consumers continue to trade down to alternatives.
Restaurant Brands International's Tim Hortons business in Canada is vulnerable to prolonged macroeconomic headwinds that could constrain its growth trajectory despite its historical resilience, with comparable sales growth of only 1.5% in Q1 FY26—below the 2.5% analyst estimate and reflecting a challenging environment marked by severe winter weather and softer consumer confidence. Although Tim Hortons delivered its 20th consecutive quarter of positive comparable sales and outperformed the flat QSR industry, the company acknowledged that snowstorms in January and broader economic concerns weighed on sales, and while management expressed confidence in outperforming through cycles, the reliance on incremental investments—such as 300-plus remodels and increased new restaurant openings—may not be sufficient if consumer spending remains depressed due to factors like elevated gas prices or broader economic uncertainty. The company's strategy to drive growth through cold beverage innovation (up 10% year-over-year), breakfast leadership (now #1 in Brand Health's best breakfast ranking), and the upcoming loyalty partnership with Canadian Tire is promising, but these initiatives depend on consumer willingness to spend, which could be curtailed if macroeconomic pressures persist. Furthermore, while Tim Hortons benefits from strong brand loyalty and unit economics, its growth is inherently tied to the Canadian consumer, and any prolonged downturn in discretionary spending—potentially exacerbated by geopolitical tensions or energy cost volatility—could limit the effectiveness of operational and marketing initiatives. The business model, while defensible, may not generate the acceleration needed to offset weaknesses elsewhere in the portfolio if the Canadian macro environment remains subdued, making Tim Hortons less of a reliable growth engine than its historical consistency might suggest.
Restaurant Brands International faces mounting cost pressures, particularly from persistent beef inflation, that could compress franchisee profitability and undermine the sustainability of its growth strategy, especially in the Burger King U.S. and Popeyes segments, where beef constitutes a significant portion of the food basket. Although management expects beef cost relief to emerge closer to 2027 as part of a herd rebuilding cycle, the current elevated level of beef costs remains a headwind, contributing to high single-digit food cost increases in Q1 FY26 and putting pressure on franchisee margins despite top-line sales growth. This dynamic was acknowledged in the Q&A, where management noted that while Carrols margin expansion occurred due to top-line sales overcoming inflation, the broader system continues to face pressure, and relief on the food cost side is not expected until later in the decade. The company's strategy of investing in remodels and restaurant upgrades—critical to sustaining the Burger King turnaround—depends on franchisee profitability and willingness to reinvest, which could be hampered if beef costs remain elevated and squeeze unit-level economics. Furthermore, the Tim Hortons supply chain margins are expected to remain roughly in line with 2025 levels, offering little relief from cost pressures in that segment. While the company has benefited from specific tailwinds like bad debt recoveries and G&A savings, these are not sustainable sources of AOI growth, and the long-term algorithm of 8%+ organic AOI growth relies on consistent same-store sales and net restaurant expansion, both of which could be strained if franchisees struggle to maintain profitability amid ongoing commodity volatility. Until beef costs normalize, the company's ability to deliver predictable earnings growth and fund its ambitious refranchising and remodeling plans may be constrained, representing a material risk to the achievement of its 2028 financial targets.

Geographical Breakdown of Revenue (2025)

Peer Comparison

Companies in the Restaurants

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SBUX	Starbucks Corp	118.28 Bn	79.08	3.07	15.08 Bn
2	YUM	Yum Brands Inc	41.26 Bn	23.74	4.86	11.95 Bn
3	CMG	Chipotle Mexican Grill Inc	41.21 Bn	28.38	3.40	-
4	QSR	Restaurant Brands International Inc.	25.26 Bn	26.45	2.63	13.30 Bn
5	DRI	Darden Restaurants Inc	22.64 Bn	-5,264.33	1.77	2.43 Bn
6	YUMC	Yum China Holdings, Inc.	15.35 Bn	15.43	1.27	0.02 Bn
7	TXRH	Texas Roadhouse, Inc.	12.76 Bn	30.71	2.10	0.05 Bn
8	DPZ	Dominos Pizza Inc	11.11 Bn	14.99	2.21	4.88 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

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Research Tools

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Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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