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QSR (Restaurant Brands International) Degree of Operating Leverage : 0.38 (As of Mar. 2025)


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What is Restaurant Brands International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Restaurant Brands International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Restaurant Brands International's Degree of Operating Leverage or its related term are showing as below:

QSR's Degree of Operating Leverage is ranked better than
59.12% of 340 companies
in the Restaurants industry
Industry Median: 1.035 vs QSR: 0.38

Restaurant Brands International Degree of Operating Leverage Historical Data

The historical data trend for Restaurant Brands International's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Restaurant Brands International Degree of Operating Leverage Chart

Restaurant Brands International Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.10 3.70 0.33 1.14 0.88

Restaurant Brands International Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.78 1.65 1.10 0.88 0.38

Competitive Comparison of Restaurant Brands International's Degree of Operating Leverage

For the Restaurants subindustry, Restaurant Brands International's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Restaurant Brands International's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Restaurant Brands International's Degree of Operating Leverage falls into.


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Restaurant Brands International Degree of Operating Leverage Calculation

Restaurant Brands International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2288 (Mar. 2025) / 2150 (Mar. 2024) - 1 )/( 8776 (Mar. 2025) / 7171 (Mar. 2024) - 1 )
=0.0642/0.2238
=0.29***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Restaurant Brands International  (NYSE:QSR) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Restaurant Brands International Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Restaurant Brands International's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Restaurant Brands International Business Description

Traded in Other Exchanges
Address
130 King Street West, Suite 300, P.O. Box 339, Toronto, ON, CAN, M5X 1E1
Restaurant Brands International is one of the largest restaurant companies in the world, with approximately $44 billion in 2024 systemwide sales across a footprint that spanned more than 32,000 restaurants and more than 100 countries. The firm generates revenue primarily from retail sales at its company-owned restaurants, royalty fees and lease income from franchised stores, and from its Tim Hortons supply chain operations. Formed in 2014 after 3G Capital's acquisition of Tim Hortons International, the RBI portfolio is split among Burger King (7,082 units), Tim Hortons (4,539 units), Popeyes Louisiana Kitchen (3,520 units), Firehouse Subs (1,345 units), and international franchise units of those banners (15,639) as of year-end 2024.
Executives
Thomas Benjamin Curtis officer: See Remarks 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Sami A. Siddiqui officer: Brand Pres., Popeyes, Americas C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Duncan Fulton officer: Chief Corporate Officer C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Jeffrey Housman officer: See Remarks C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Axel Mr Schwan officer: Pres., Tim Hortons Americas 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Joshua Kobza officer: Chief Financial Officer 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Jacqueline Friesner officer: See Remarks 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Jill Granat officer: See Remarks 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
J Patrick Doyle officer: Executive Chairman 8701 COLLINS AVENUE UNIT 1202, MIAMI BEACH FL 33154
Ali Hedayat director 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Matthew Dunnigan officer: CFO 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
David Chan Shear officer: President, International C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Jordana Fribourg director C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Jose E. Cil officer: See Remarks 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Cristina Farjallat director 130 KING STREET WEST, SUITE 300, TORONTO Z4 M5X 1E1