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Also traded in: Canada, Germany, Mexico

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 4/10

vs
industry
vs
history
Cash-to-Debt 0.31
QSR's Cash-to-Debt is ranked lower than
64% of the 325 Companies
in the Global Restaurants industry.

( Industry Median: 0.67 vs. QSR: 0.31 )
Ranked among companies with meaningful Cash-to-Debt only.
QSR' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.08  Med: 0.11 Max: 0.31
Current: 0.31
0.08
0.31
Equity-to-Asset 0.09
QSR's Equity-to-Asset is ranked lower than
92% of the 319 Companies
in the Global Restaurants industry.

( Industry Median: 0.50 vs. QSR: 0.09 )
Ranked among companies with meaningful Equity-to-Asset only.
QSR' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.07  Med: 0.09 Max: 0.09
Current: 0.09
0.07
0.09
Debt-to-Equity 5.44
QSR's Debt-to-Equity is ranked lower than
98% of the 240 Companies
in the Global Restaurants industry.

( Industry Median: 0.50 vs. QSR: 5.44 )
Ranked among companies with meaningful Debt-to-Equity only.
QSR' s Debt-to-Equity Range Over the Past 10 Years
Min: 2  Med: 5.56 Max: 6.53
Current: 5.44
2
6.53
Debt-to-EBITDA 5.95
QSR's Debt-to-EBITDA is ranked lower than
83% of the 226 Companies
in the Global Restaurants industry.

( Industry Median: 2.35 vs. QSR: 5.95 )
Ranked among companies with meaningful Debt-to-EBITDA only.
QSR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.73  Med: 5.83 Max: 103.86
Current: 5.95
4.73
103.86
Interest Coverage 3.38
QSR's Interest Coverage is ranked lower than
85% of the 268 Companies
in the Global Restaurants industry.

( Industry Median: 23.34 vs. QSR: 3.38 )
Ranked among companies with meaningful Interest Coverage only.
QSR' s Interest Coverage Range Over the Past 10 Years
Min: 0.64  Med: 2.47 Max: 3.54
Current: 3.38
0.64
3.54
Piotroski F-Score: 7
Altman Z-Score: 1.07
Beneish M-Score: -2.75
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating Margin % 38.63
QSR's Operating Margin % is ranked higher than
96% of the 323 Companies
in the Global Restaurants industry.

( Industry Median: 5.00 vs. QSR: 38.63 )
Ranked among companies with meaningful Operating Margin % only.
QSR' s Operating Margin % Range Over the Past 10 Years
Min: 15.11  Med: 29.42 Max: 45.56
Current: 38.63
15.11
45.56
Net Margin % 13.93
QSR's Net Margin % is ranked higher than
90% of the 323 Companies
in the Global Restaurants industry.

( Industry Median: 2.91 vs. QSR: 13.93 )
Ranked among companies with meaningful Net Margin % only.
QSR' s Net Margin % Range Over the Past 10 Years
Min: 5.97  Med: 13.46 Max: 20.39
Current: 13.93
5.97
20.39
ROE % 18.92
QSR's ROE % is ranked higher than
84% of the 306 Companies
in the Global Restaurants industry.

( Industry Median: 7.82 vs. QSR: 18.92 )
Ranked among companies with meaningful ROE % only.
QSR' s ROE % Range Over the Past 10 Years
Min: -24.34  Med: 14.8 Max: 30.83
Current: 18.92
-24.34
30.83
ROA % 2.92
QSR's ROA % is ranked lower than
55% of the 324 Companies
in the Global Restaurants industry.

( Industry Median: 3.71 vs. QSR: 2.92 )
Ranked among companies with meaningful ROA % only.
QSR' s ROA % Range Over the Past 10 Years
Min: 1.21  Med: 2.65 Max: 8.02
Current: 2.92
1.21
8.02
ROC (Joel Greenblatt) % 78.16
QSR's ROC (Joel Greenblatt) % is ranked higher than
88% of the 323 Companies
in the Global Restaurants industry.

( Industry Median: 17.30 vs. QSR: 78.16 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
QSR' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.83  Med: 66.6 Max: 127.32
Current: 78.16
1.83
127.32
3-Year Revenue Growth Rate 51.10
QSR's 3-Year Revenue Growth Rate is ranked higher than
99% of the 282 Companies
in the Global Restaurants industry.

( Industry Median: 4.10 vs. QSR: 51.10 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
QSR' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: 28.4  Med: 39.75 Max: 51.1
Current: 51.1
28.4
51.1
3-Year EBITDA Growth Rate 43.90
QSR's 3-Year EBITDA Growth Rate is ranked higher than
97% of the 256 Companies
in the Global Restaurants industry.

( Industry Median: 5.10 vs. QSR: 43.90 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
QSR' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: 40.4  Med: 42.15 Max: 43.9
Current: 43.9
40.4
43.9
3-Year EPS without NRI Growth Rate 40.90
QSR's 3-Year EPS without NRI Growth Rate is ranked higher than
88% of the 219 Companies
in the Global Restaurants industry.

( Industry Median: 6.70 vs. QSR: 40.90 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
QSR' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: 28  Med: 34.45 Max: 40.9
Current: 40.9
28
40.9
GuruFocus has detected 3 Warning Signs with Restaurant Brands International Inc QSR.
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» QSR's 30-Y Financials

Financials (Next Earnings Date: 2017-11-24)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q4 2016

QSR Guru Trades in Q4 2016

Steven Cohen 96,600 sh (New)
Joel Greenblatt 466,363 sh (+1863.80%)
Chase Coleman 2,302,080 sh (+7.18%)
Warren Buffett 8,438,225 sh (unchged)
Bill Ackman 39,150,551 sh (unchged)
Murray Stahl 20,921 sh (-8.53%)
Caxton Associates 40,000 sh (-20.00%)
» More
Q1 2017

QSR Guru Trades in Q1 2017

First Eagle Investment 62,101 sh (New)
Jim Simons 86,187 sh (New)
Steven Cohen 281,600 sh (+191.51%)
Chase Coleman 2,432,080 sh (+5.65%)
Bill Ackman 39,150,551 sh (unchged)
Warren Buffett 8,438,225 sh (unchged)
Caxton Associates Sold Out
Murray Stahl 19,098 sh (-8.71%)
Joel Greenblatt 52,027 sh (-88.84%)
» More
Q2 2017

QSR Guru Trades in Q2 2017

Caxton Associates 65,000 sh (New)
Ray Dalio 49,181 sh (New)
Jim Simons 183,200 sh (+112.56%)
Bill Ackman 39,150,551 sh (unchged)
Warren Buffett 8,438,225 sh (unchged)
First Eagle Investment Sold Out
Murray Stahl 18,246 sh (-4.46%)
Chase Coleman 1,851,248 sh (-23.88%)
Steven Cohen 39,500 sh (-85.97%)
Joel Greenblatt 4,445 sh (-91.46%)
» More
Q3 2017

QSR Guru Trades in Q3 2017

Louis Moore Bacon 175,000 sh (New)
Steven Cohen 1,257,541 sh (+3083.65%)
Chase Coleman 2,500,000 sh (+35.04%)
Ray Dalio 49,181 sh (unchged)
Warren Buffett 8,438,225 sh (unchged)
Murray Stahl 16,288 sh (-10.73%)
Joel Greenblatt 3,671 sh (-17.41%)
Bill Ackman 26,500,729 sh (-32.31%)
Caxton Associates 40,000 sh (-38.46%)
Jim Simons 26,900 sh (-85.32%)
» More
» Details

Insider Trades

Latest Guru Trades with QSR

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Bill Ackman 2017-09-30 Reduce -32.31%13.15%$59.25 - $65.58 $ 64.935%26,500,729
Joel Greenblatt 2017-09-30 Reduce -17.41%$59.25 - $65.58 $ 64.935%3,671
Bill Ackman 2017-07-11 Reduce -25.54%10.32%Premium Member Access $62.09 $ 64.935%29,150,551
Joel Greenblatt 2017-06-30 Reduce -91.46%0.04%$55.74 - $62.49 $ 64.9310%4,445
First Eagle Investment 2017-06-30 Sold Out 0.01%$55.74 - $62.49 $ 64.9310%0
First Eagle Investment 2017-03-31 New Buy0.01%$47 - $57.6 $ 64.9324%62,101
Joel Greenblatt 2017-03-31 Reduce -88.84%0.26%$47 - $57.6 $ 64.9324%52,027
Bill Ackman 2016-12-31 Add 0.98%0.34%Premium Member Access $47.66 $ 64.9336%39,150,551
Joel Greenblatt 2016-12-31 Add 1863.80%0.28%$43.01 - $49.66 $ 64.9341%466,363
Premium More recent guru trades are included for Premium Members only!!
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Business Description

Industry: Restaurants » Restaurants    NAICS: 722511    SIC: 9211
Compare:NYSE:YUMC, NYSE:ARMK, NYSE:DRI, LSE:WTB, NYSE:DPZ, NYSE:CMG, BKK:MINT-F, TSE:2702, NYSE:YUM, PHS:JFC, NAS:DNKN, XPAR:ELIOR, NAS:CBRL, NAS:WEN, NAS:TXRH, LSE:SSPG, MIL:AGL, ASX:DMP, NAS:JACK, TSE:3197 » details
Traded in other countries:QSR.Canada, 0R6.Germany, QSR N.Mexico,
Headquarter Location:Canada
Restaurant Brands International Inc is a quick service restaurant company. It owns and operates restaurants brands include Burger King, Tim Hortons, and Popeyes Louisiana Kitchen.

The consolidation of Burger King, Tim Hortons, and Popeyes Louisiana Kitchen as Restaurant Brands International creates the third-largest global QSR chain, with $27.9 billion in system sales in 2016 and 23,700 units (99% franchised) as of September 2017. Revenue comes largely from franchise royalties and distribution sales to franchisees. Worldwide, there were 16,300 Burger King locations, 4,700 Tim Hortons locations, and 2,800 Popeyes locations as of September 2017.

Guru Investment Theses on Restaurant Brands International Inc

Bill Ackman Comments on Restaurant Brands - Nov 16, 2017

We consider Restaurant Brands’ (NYSE:QSR) franchised business model to be a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from its three brands: Burger King, Tim Hortons and Popeyes. The company has an extremely capable management team, is backed by an owner-oriented sponsor (3G), and has a large unit growth opportunity that requires virtually no incremental capital. The company’s operating strategy is highly scalable and replicable, which should provide opportunities for additional value-creating acquisitions over time.

Restaurant Brands reported continued earnings growth for the third quarter of 2017. The company delivered strong net unit growth at each of its three brands and made progress with Popeyes’ cost structure. Performance at Burger King was particularly impressive this quarter, but was somewhat offset by softness at Tim Hortons.

Same-store-sales this quarter grew 3.6% at Burger King, with 4% growth in the US as the company continues to improve its mix of premium and value offerings. Tim Hortons’ same-store-sales were roughly flat, as customers have been slow to try the espresso-based drinks and new offerings on the lunch menu that were introduced at the end of the quarter. We believe sales in recent quarters have also been negatively impacted by the recent public dispute with a group of franchisees. Net units grew 6%, reflecting strong growth across all of the brands. Burger King reported 7% net unit growth, which was its highest level in the last decade.

Organic EBITDA grew 8%, with 16% growth at Burger King, 1% declines at Tim Hortons, and a 40% increase at Popeyes. Growth at Burger King reflected strong same-store sales, substantial net unit growth, and improved franchised margins. The slight decline at Tim Hortons was due primarily to a price reduction on supplies sold to its franchisees and an increase in costs. While these items depressed earnings in the current quarter, they represent an investment in improving relationships with Tim Hortons’ franchisees. Popeyes’ growth was due to unit growth and cost reductions. Overall, Restaurant Brand’s reported EBITDA grew 10%, due to a 2% tailwind from the weaker USD.

We believe that Restaurant Brands remains a compelling value at 21 times our estimate of 2018 free cash flow per share in light of our belief that the company can grow free cash per share in the mid-to-high teens for the foreseeable future.

From Bill Ackman (Trades, Portfolio)'s third quarter 2017 shareholder letter.

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Bill Ackman Comments on Automatic Data Procession - Aug 18, 2017

Restaurant Brands reported continued earnings growth for the second quarter of 2017. The company delivered strong net unit growth at each of its three brands and significantly improved Popeyes’ cost structure in its first full quarter of ownership. Same-store-sales growth was mixed, as Burger King returned to growth and Tim Hortons results modestly declined.

Same-store-sales this quarter showed strong growth of nearly 4% at Burger King, with 3% growth in the U.S. as the company struck a better balance between value and premium offerings. Tim Hortons’ same-store-sales declined just under 1%, due to weakness in its baked goods offerings and lunch day part. A recent public dispute with a group of franchisees may have also contributed to the decline this quarter. We believe the company is taking the appropriate steps to improve franchisee relationships and expect that the recent introduction of espresso-based drinks and a new mobile app will enhance future sales.

Net units grew 6%, the highest rate in several years, reflecting strong growth across all of the brands. The company also announced an agreement with an existing Burger King franchisee to develop Tim Hortons restaurants in Spain, which represents the brand’s fourth international development agreement.

As a result of same-store-sales and net unit growth, Restaurant Brands’ organic revenue grew 6%. The company also continued to reduce costs, most notably at Popeyes, where margins increased by nearly 1,500 basis points. As a result of strong top line growth and cost reduction, Restaurant Brands grew organic EBITDA 9% this quarter. Reported EBITDA grew 6%, due to the headwind from the strengthening U.S. dollar.

We sold approximately 25% of our stake in QSR as its strong price appreciation year-to-date, and over the last 12 months, made it a disproportionately large percentage of the portfolio.

From Bill Ackman (Trades, Portfolio)'s second quarter 2017 shareholder letter.

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Bill Ackman Comments on Restaurant Brands International - May 12, 2017

QSR (NYSE:QSR) delivered strong earnings growth in the first quarter as the company maintained a high level of net unit growth and continued to achieve cost and capital efficiencies at Tim Hortons. Same-store sales growth decelerated from the pace of previous quarters and was roughly flat with prior year levels at both Burger King and Tim Hortons. QSR launched several new products during the second quarter including espresso-based drinks at Tim Hortons and the Steakhouse King hamburger at Burger King. These new offerings should help drive improved same-store sales results in future quarters.

QSR achieved net unit growth of 5% at both concepts and continued to enter into development agreements in new markets. QSR made additional progress improving Tim Hortons’ cost structure as it increased margins in the distribution businesses by nearly 300 basis points and further reduced the company’s capital requirements. As a result of the net unit growth and further cost efficiencies, organic EBITDA grew 7% and EPS grew nearly 20%.

QSR completed the acquisition of Popeyes Louisiana Kitchen at the end of March. We believe that QSR can meaningfully improve Popeye’s cost structure and can dramatically accelerate its unit growth, which will further enhance the company’s future growth profile.

From Bill Ackman (Trades, Portfolio)'s first quarter 2017 shareholder letter.


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Bill Ackman Comments on Restaurant Brands International - May 08, 2017

QSR’s franchised business model is best described as a capital-light, high-growth annuity. The company earns high-margin, brand royalty franchise fees (4% to 5% of unit sales) from Burger King and Tim Hortons franchisee operated stores which are relatively insulated from economic cycles. As a result of the business’ structure and the market in which it operates, significant unit growth requires no capital from QSR (NYSE:QSR).

The company’s controlling shareholder 3G is an ideal operating partner and sponsor. It has installed an excellent management team and created a unique and impactful performance culture, compensation system, and business processes. We believe 3G’s highly scalable and replicable operating strategy can be applied to potential future acquisition opportunities.

QSR’s intrinsic value meaningfully increased in 2016, as the company continued to deliver strong financial performance: 16% organic EBITDA growth and 45% EPS growth. The high rate of EBITDA growth was driven by 2% Same-Store Sales (SSS) growth at Burger King and 3% at Tim Hortons, 5% net unit growth at both concepts, and continued cost reduction at Tim Hortons. QSR improved Tim Hortons’ EBITDA margins by 500 basis points in 2016, due to margin improvement in both the franchise and distribution businesses and a 12% reduction in overhead costs. QSR’s reported EBITDA grew 13%, including a 3% headwind from foreign exchange.

As a result of the positive business momentum, the total return for Restaurant Brands’ shares was 29.2% in 2016. In February 2017, QSR announced the acquisition of Popeyes Louisiana Kitchen. We believe QSR will be able to meaningfully improve Popeye’s cost structure and significantly accelerate its growth in new units, which will further increase Restaurant Brands’ future earnings growth and intrinsic value.

From 2016 annual letter to shareholders of Pershing Square by Bill Ackman (Trades, Portfolio).

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Bill Ackman Comments on Restaurant Brands International - Mar 30, 2017



QSR (NYSE:QSR)’s franchised business model is best described as a capital-light, high-growth annuity. The company earns high-margin, brand royalty franchise fees (4% to 5% of unit sales) from Burger King and Tim Hortons franchisee operated stores which are relatively insulated from economic cycles. As a result of the business’ structure and the market in which it operates, significant unit growth requires no capital from QSR.

The company’s controlling shareholder 3G is an ideal operating partner and sponsor. It has installed an excellent management team and created a unique and impactful performance culture, compensation system, and business processes. We believe 3G’s highly scalable and replicable operating strategy can be applied to potential future acquisition opportunities.

QSR’s intrinsic value meaningfully increased in 2016, as the company continued to deliver strong financial performance: 16% organic EBITDA growth and 45% EPS growth. The high rate of EBITDA growth was driven by 2% Same-Store Sales (SSS) growth at Burger King and 3% at Tim Hortons, 5% net unit growth at both concepts, and continued cost reduction at Tim Hortons. QSR improved Tim Hortons’ EBITDA margins by 500 basis points in 2016, due to margin improvement in both the franchise and distribution businesses and a 12% reduction in overhead costs. QSR’s reported EBITDA grew 13%, including a 3% headwind from foreign exchange.

As a result of the positive business momentum, the total return for Restaurant Brands’ shares was 29.2% in 2016. In February 2017, QSR announced the acquisition of Popeyes Louisiana Kitchen. We believe QSR will be able to meaningfully improve Popeye’s cost structure and significantly accelerate its growth in new units, which will further increase Restaurant Brands’ future earnings growth and intrinsic value.



From Bill Ackman (Trades, Portfolio)'s Pershing Square 2016 annual report.


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Bill Ackman Comments on Restaurant Brands International - Dec 09, 2016

QSR (NYSE:QSR) reported strong results by executing on its three key growth drivers: same store sales, net unit growth, and operational efficiency. In the third quarter, the company generated 2% same store sales growth in its Burger King and Tim Hortons concepts. While same store sales growth has decelerated over the last few quarters, it is still at a healthy overall level. Strong international growth was partially offset by weaker U.S. performance at Burger King where same store sales declined 0.5%. The decline in the U.S. is partially due to a tough comparison with last year’s quarter’s 5% growth, but also reflects a more difficult industry environment as the recent decline in food costs has widened the price gap between restaurant and grocery to historically high levels, resulting in lower restaurant traffic.

QSR achieved net unit growth of 3% which management expects will accelerate in the fourth quarter. In addition, Tim Hortons recently announced two master franchise agreements in the U.K. and the Philippines, which should accelerate future growth.

QSR continues to improve the efficiency of Tim Hortons’ cost structure by reducing overhead costs by more than 8% this quarter and meaningfully increasing margins in the franchised and distribution businesses.

From Bill Ackman (Trades, Portfolio)'s Pershing Square third-quarter shareholder letter.

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Bill Ackman Comments on Restaurant Brands - Aug 29, 2016

Restaurant Brands (NYSE:QSR) reported another strong quarter of underlying earnings in the second quarter of 2016. The company continued to deliver strong net unit growth at both concepts while substantially improving Tim Hortons' cost structure. Same-store-sales growth decelerated from prior quarters against a backdrop of slowing growth for the U.S. fast-food industry.

Same-store-sales for the quarter grew nearly 1% at Burger King and 3% at Tim Hortons. Same-store-sales for Burger King's U.S. business declined 1% in the second quarter, due in part to the industry slowdown and a tough comparison against nearly 8% growth in last year's second quarter. Over time, we expect Burger King's U.S. same-store sales to increase at a healthy rate as the company narrows the sales gap with its key U.S. competitors. Net units grew 4% and the development pipeline remains strong. As a result of same-store-sales and net unit growth, Restaurant Brands' organic revenue grew 4%.

The company continued to reduce Tim Hortons' overhead costs and improve margins in its franchised operations and distribution businesses. As a result of strong top-line trends and cost reduction initiatives, Restaurant Brands grew organic EBITDA 16% this quarter. Although the strengthening USD remained a headwind, Restaurant Brands' reported EBITDA grew 12%.

From Bill Ackman (Trades, Portfolio)'s mid-year 2016 letter.

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Bill Ackman Comments on Restaurant Brands International - May 11, 2016

Restaurant Brands (NYSE:QSR) reported another strong quarter of underlying earnings with its results for the first quarter of 2016. The company continues to deliver strong same-store-sales growth and net unit growth at both concepts and continues to improve Tim Hortons’ cost structure.

Same-store-sales this quarter grew 5% at Burger King and 6% at Tim Hortons as continued new product innovation, such as Grilled Dogs at Burger King and croissant breakfast sandwiches at Tim’s, drove improved results. Same-store-sales growth at Burger King U.S. was 4%, which highlights the progress the company is making in narrowing the sales gap between Burger King and its key U.S. competitors. Net units grew 4% at both concepts and management indicated that they have a strong development pipeline for new stores this year. As a result, Restaurant Brands’ organic revenue growth was 6%.

In addition to strong organic revenue growth, the company continued to reduce Tim Hortons’ overhead costs and improve margins in its franchised operations and distribution businesses. As a result of strong top-line trends and cost reduction, Restaurant Brands grew organic EBITDA 23% this quarter. Although the strengthening USD remained a materially negative headwind, Restaurant Brands’ reported EBITDA still grew 15%, which is the highest level of growth the company has achieved since the Tim’s acquisition.

From Bill Ackman (Trades, Portfolio)'s first quarter shareholder letter.

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Bill Ackman Comments on Restaurant Brands International - Dec 16, 2015

Restaurant Brands International (NYSE:QSR)

QSR delivered another strong quarter of earnings, consistent with our belief that the company will produce a high rate of earnings growth over the coming years. QSR continues to deliver strong improvement in Burger King (BKW) U.S. same-store sales (SSS) growth. This quarter SSS grew 5% which is at the top of the QSR industry once again. This is also QSR’s eighth consecutive quarter of positive comps. New product innovations, improved service, and the increasingly remodeled store footprint are contributing to increased growth.

Despite its industry-leading SSS growth in recent quarters, BKW still operates at sales-per-store that are well below its peers, Wendy’s and McDonalds. Closing this gap will provide QSR with an additional significant driver of earnings growth over the coming years.

Tim Hortons’ (THI) overhead cost declined by nearly 40% this quarter, accelerating the rate of cost reduction achieved in prior quarters. Importantly, QSR is improving the brand’s operating efficiency while maintaining THI’s high level of SSS growth and increasing unit count.

Strong sales improvement at BKW’s U.S. business, and operational efficiencies at THI were two important factors, when combined with strong restaurant unit growth, that allowed QSR to grow EBITDA by 6% and EPS by 33%, in spite of the strengthening U.S. dollar, which negatively impacted results by more than 12%.

From Bill Ackman (Trades, Portfolio)'s Pershing Square Holdings third quarter 2015 letter to shareholders.

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Top Ranked Articles about Restaurant Brands International Inc

Bill Ackman Comments on Restaurant Brands Guru stock highlight
We consider Restaurant Brands’ (NYSE:QSR) franchised business model to be a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from its three brands: Burger King, Tim Hortons and Popeyes. The company has an extremely capable management team, is backed by an owner-oriented sponsor (3G), and has a large unit growth opportunity that requires virtually no incremental capital. The company’s operating strategy is highly scalable and replicable, which should provide opportunities for additional value-creating acquisitions over time.

Restaurant Brands reported continued earnings growth for the third quarter of 2017. The company delivered strong net unit growth at each of its three brands and made progress with Popeyes’ cost structure. Performance at Burger King was particularly impressive this quarter, but was somewhat offset by softness at Tim Hortons.

Same-store-sales this quarter grew 3.6% at Burger King, with 4% growth in the US as the company continues to improve its mix of premium and value offerings. Tim Hortons’ Read more...
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Restaurant Brands International Inc. Announces Intention to Redeem All Class A Preferred Shares and to Repurchase 5.0 million Class B Exchangeable Limited Partnership Units
Restaurant Brands International Inc. to Report Third Quarter 2017 Results on October 26, 2017
Restaurant Brands International Inc. Announces Pricing and Upsizing of Add-On Offering of 5.0% Second Lien Senior Secured Notes due 2025
Restaurant Brands International Inc. Announces Launch of Add-On Offering of 5.0% Second Lien Senior Secured Notes Due 2025
Restaurant Brands International Inc. Announces Participation at Upcoming Investor Conference
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Bill Ackman Comments on Automatic Data Procession Guru stock highlight
Restaurant Brands reported continued earnings growth for the second quarter of 2017. The company delivered strong net unit growth at each of its three brands and significantly improved Popeyes’ cost structure in its first full quarter of ownership. Same-store-sales growth was mixed, as Burger King returned to growth and Tim Hortons results modestly declined. Read more...
Restaurant Brands International Inc. Announces Pricing and Upsizing of Second Lien Senior Secured Notes Offering

Ratios

vs
industry
vs
history
PE Ratio 43.68
QSR's PE Ratio is ranked lower than
75% of the 230 Companies
in the Global Restaurants industry.

( Industry Median: 25.04 vs. QSR: 43.68 )
Ranked among companies with meaningful PE Ratio only.
QSR' s PE Ratio Range Over the Past 10 Years
Min: 33.48  Med: 40.94 Max: 76.94
Current: 43.68
33.48
76.94
Forward PE Ratio 19.05
QSR's Forward PE Ratio is ranked lower than
51% of the 59 Companies
in the Global Restaurants industry.

( Industry Median: 18.90 vs. QSR: 19.05 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 43.68
QSR's PE Ratio without NRI is ranked lower than
76% of the 233 Companies
in the Global Restaurants industry.

( Industry Median: 24.68 vs. QSR: 43.68 )
Ranked among companies with meaningful PE Ratio without NRI only.
QSR' s PE Ratio without NRI Range Over the Past 10 Years
Min: 33.48  Med: 40.94 Max: 76.94
Current: 43.68
33.48
76.94
PB Ratio 7.38
QSR's PB Ratio is ranked lower than
87% of the 303 Companies
in the Global Restaurants industry.

( Industry Median: 2.92 vs. QSR: 7.38 )
Ranked among companies with meaningful PB Ratio only.
QSR' s PB Ratio Range Over the Past 10 Years
Min: 3.8  Med: 6 Max: 8.2
Current: 7.38
3.8
8.2
PS Ratio 6.67
QSR's PS Ratio is ranked lower than
93% of the 316 Companies
in the Global Restaurants industry.

( Industry Median: 1.12 vs. QSR: 6.67 )
Ranked among companies with meaningful PS Ratio only.
QSR' s PS Ratio Range Over the Past 10 Years
Min: 3.98  Med: 6.1 Max: 14.7
Current: 6.67
3.98
14.7
Price-to-Free-Cash-Flow 26.47
QSR's Price-to-Free-Cash-Flow is ranked higher than
52% of the 126 Companies
in the Global Restaurants industry.

( Industry Median: 26.64 vs. QSR: 26.47 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
QSR' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 14.79  Med: 21.99 Max: 80.79
Current: 26.47
14.79
80.79
Price-to-Operating-Cash-Flow 25.73
QSR's Price-to-Operating-Cash-Flow is ranked lower than
81% of the 172 Companies
in the Global Restaurants industry.

( Industry Median: 11.51 vs. QSR: 25.73 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
QSR' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 13.37  Med: 21.31 Max: 70.66
Current: 25.73
13.37
70.66
EV-to-EBIT 14.73
QSR's EV-to-EBIT is ranked higher than
65% of the 248 Companies
in the Global Restaurants industry.

( Industry Median: 17.54 vs. QSR: 14.73 )
Ranked among companies with meaningful EV-to-EBIT only.
QSR' s EV-to-EBIT Range Over the Past 10 Years
Min: 14.52  Med: 23.4 Max: 1406.1
Current: 14.73
14.52
1406.1
EV-to-EBITDA 13.31
QSR's EV-to-EBITDA is ranked higher than
51% of the 269 Companies
in the Global Restaurants industry.

( Industry Median: 13.53 vs. QSR: 13.31 )
Ranked among companies with meaningful EV-to-EBITDA only.
QSR' s EV-to-EBITDA Range Over the Past 10 Years
Min: 13.12  Med: 20.9 Max: 323
Current: 13.31
13.12
323
EV-to-Revenue 5.51
QSR's EV-to-Revenue is ranked lower than
92% of the 321 Companies
in the Global Restaurants industry.

( Industry Median: 1.22 vs. QSR: 5.51 )
Ranked among companies with meaningful EV-to-Revenue only.
QSR' s EV-to-Revenue Range Over the Past 10 Years
Min: 6.5  Med: 8.5 Max: 24
Current: 5.51
6.5
24
Current Ratio 3.45
QSR's Current Ratio is ranked higher than
90% of the 316 Companies
in the Global Restaurants industry.

( Industry Median: 1.16 vs. QSR: 3.45 )
Ranked among companies with meaningful Current Ratio only.
QSR' s Current Ratio Range Over the Past 10 Years
Min: 1.22  Med: 1.43 Max: 3.45
Current: 3.45
1.22
3.45
Quick Ratio 3.38
QSR's Quick Ratio is ranked higher than
91% of the 316 Companies
in the Global Restaurants industry.

( Industry Median: 1.04 vs. QSR: 3.38 )
Ranked among companies with meaningful Quick Ratio only.
QSR' s Quick Ratio Range Over the Past 10 Years
Min: 1.15  Med: 1.36 Max: 3.38
Current: 3.38
1.15
3.38
Days Inventory 13.43
QSR's Days Inventory is ranked lower than
52% of the 305 Companies
in the Global Restaurants industry.

( Industry Median: 12.85 vs. QSR: 13.43 )
Ranked among companies with meaningful Days Inventory only.
QSR' s Days Inventory Range Over the Past 10 Years
Min: 0.63  Med: 12.96 Max: 53.82
Current: 13.43
0.63
53.82
Days Sales Outstanding 32.54
QSR's Days Sales Outstanding is ranked lower than
85% of the 271 Companies
in the Global Restaurants industry.

( Industry Median: 8.17 vs. QSR: 32.54 )
Ranked among companies with meaningful Days Sales Outstanding only.
QSR' s Days Sales Outstanding Range Over the Past 10 Years
Min: 32.54  Med: 46.84 Max: 136.43
Current: 32.54
32.54
136.43

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 1.14
QSR's Dividend Yield % is ranked lower than
55% of the 322 Companies
in the Global Restaurants industry.

( Industry Median: 1.26 vs. QSR: 1.14 )
Ranked among companies with meaningful Dividend Yield % only.
QSR' s Dividend Yield % Range Over the Past 10 Years
Min: 0.22  Med: 1.18 Max: 1.33
Current: 1.14
0.22
1.33
Dividend Payout Ratio 0.51
QSR's Dividend Payout Ratio is ranked lower than
64% of the 208 Companies
in the Global Restaurants industry.

( Industry Median: 0.36 vs. QSR: 0.51 )
Ranked among companies with meaningful Dividend Payout Ratio only.
QSR' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.43  Med: 0.65 Max: 0.88
Current: 0.51
0.43
0.88
Forward Dividend Yield % 1.29
QSR's Forward Dividend Yield % is ranked lower than
62% of the 306 Companies
in the Global Restaurants industry.

( Industry Median: 1.82 vs. QSR: 1.29 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 1.14
QSR's 5-Year Yield-on-Cost % is ranked lower than
63% of the 387 Companies
in the Global Restaurants industry.

( Industry Median: 1.93 vs. QSR: 1.14 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
QSR' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.22  Med: 1.18 Max: 1.33
Current: 1.14
0.22
1.33
3-Year Average Share Buyback Ratio 13.20
QSR's 3-Year Average Share Buyback Ratio is ranked higher than
99% of the 204 Companies
in the Global Restaurants industry.

( Industry Median: -0.80 vs. QSR: 13.20 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
QSR' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: 13.2  Med: 13.55 Max: 13.9
Current: 13.2
13.2
13.9

Valuation & Return

vs
industry
vs
history
Price-to-Median-PS-Value 1.10
QSR's Price-to-Median-PS-Value is ranked lower than
55% of the 280 Companies
in the Global Restaurants industry.

( Industry Median: 1.10 vs. QSR: 1.10 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
QSR' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.74  Med: 0.97 Max: 1.98
Current: 1.1
0.74
1.98
Earnings Yield (Greenblatt) % 6.75
QSR's Earnings Yield (Greenblatt) % is ranked higher than
73% of the 322 Companies
in the Global Restaurants industry.

( Industry Median: 4.30 vs. QSR: 6.75 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
QSR' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 0.1  Med: 4.3 Max: 6.87
Current: 6.75
0.1
6.87

More Statistics

Revenue (TTM) (Mil) $4,453.30
EPS (TTM) $ 1.44
Short Percentage of Float4.41%
52-Week Range $44.77 - 68.89
Shares Outstanding (Mil)237.53

Analyst Estimate

Dec17 Dec18 Dec19
Revenue (Mil $) 5,875 6,293 6,684
EPS ($) 2.52 3.42 3.81
EPS without NRI ($) 2.52 3.42 3.81
EPS Growth Rate
(Future 3Y To 5Y Estimate)
N/A
Dividends per Share ($)

Piotroski F-Score Details

Piotroski F-Score: 77
Positive ROAY
Positive CFROAY
Higher ROA yoyY
CFROA > ROAY
Lower Leverage yoyN
Higher Current Ratio yoyY
Less Shares Outstanding yoyN
Higher Gross Margin yoyY
Higher Asset Turnover yoyY

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