Restaurant Brands International LP (OTCPK:RSTRF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Restaurant Brands International LP had a gross margin of 33.70% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Restaurant Brands International LP Gross Margin % Related Terms
Restaurant Brands International LP Gross Margin % Historical Data
* 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.
Restaurant Brands International LP Gross Margin % Chart
RSTRF vs MCD, SBUX, CMG: Gross Margin % Comparison
For the Restaurants subindustry, Restaurant Brands International LP's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 LP Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International LP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Restaurant Brands International LP's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Restaurant Brands International LP (RSTRF) has a Gross Margin % of 33.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Restaurant Brands International LP and its competitors. This is 17% below median its historical median of 40.66. Over the past decade, Restaurant Brands International LP's Gross Margin % has ranged from 33.85 to 58.19. According to the industry distribution chart, Restaurant Brands International LP ranks #241 out of 359 companies in the Restaurants industry, placing it in the top 67.1%.
Is Restaurant Brands International LP's Gross Margin % too high?
Restaurant Brands International LP's current Gross Margin % of 33.70% is 17% below median its 10-year median of 40.66. Over the past 10 years, this metric has ranged from a low of 33.85 to a high of 58.19. The Restaurants industry median Gross Margin % is 45.71. Restaurant Brands International LP's value of 33.70% is 26.3% below this industry median. Based on the distribution chart, Restaurant Brands International LP ranks #241 out of 359 companies in the Restaurants industry, which is below the industry midpoint. Overall, Restaurant Brands International LP has a GF Scoreâ„¢ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Restaurant Brands International LP's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Restaurant Brands International LP ranks #241 out of 359 companies for Gross Margin %. This places Restaurant Brands International LP in the lower half of its industry. The industry median Gross Margin % is 45.71. Restaurant Brands International LP's value of 33.70% is 26.3% below this benchmark. Historically, Restaurant Brands International LP's own Gross Margin % has ranged from 33.85 to 58.19 over the past decade. While the company's 10-year median is 40.66 vs. the industry median of 45.71, Restaurant Brands International LP has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Restaurant Brands International LP's current Gross Margin % of 33.70% is 26.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Restaurant Brands International LP and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Restaurant Brands International LP's current Gross Margin % is 33.70%, which is 17% below median its own 10-year median of 40.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Restaurant Brands International LP stock overvalued right now?
Based on GuruFocus' analysis, Restaurant Brands International LP (RSTRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $92.18, compared to a current price of $72.33 — trading 21.5% below its estimated fair value. The current Gross Margin % is 33.70%, which is 17% below median its 10-year median of 40.66 and 26.3% below the Restaurants industry median of 45.71. Restaurant Brands International LP's overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Restaurant Brands International LP (RSTRF), the current Gross Margin % is 33.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Restaurant Brands International LP (RSTRF) Overvalued in 2026?
Based on GuruFocus' analysis, Restaurant Brands International LP stock appears to be undervalued.
The current stock price of $72.33 is trading 21.5% below its estimated GF Value™ of $92.18.
GuruFocus considers Restaurant Brands International LP to be Modestly Undervalued.
Key valuation signals for RSTRF:
Gross Margin %: 33.70% (17% below median its 10-year median of 40.66)
GF Value™: $92.18 vs. price of $72.33 (21.5% below fair value)
Industry Position: 26.3% below the Restaurants median (#241 of 359)
No single metric tells the full story. See the RSTRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Restaurant Brands International LP Business Description
Restaurant Brands International LP is a Canada-based firm. It owns, operates and franchises quick-service restaurants and possesses market recognition. The company has five segments Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs( FHS), Restaurant Holdings (RH) and International (INTL). It derives maximum profit from the Tim Hortons segment.
86GF Score
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