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Restaurant Brands International Interest Coverage

: 4.31 (As of Jun. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Restaurant Brands International's Operating Income for the three months ended in Jun. 2022 was $530 Mil. Restaurant Brands International's Interest Expense for the three months ended in Jun. 2022 was $-123 Mil. Restaurant Brands International's interest coverage for the quarter that ended in Jun. 2022 was 4.31. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Restaurant Brands International Inc interest coverage is 4.04, which is low.

The historical rank and industry rank for Restaurant Brands International's Interest Coverage or its related term are showing as below:

QSR' s Interest Coverage Range Over the Past 10 Years
Min: 2.33   Med: 3.48   Max: 4.04
Current: 4.04


QSR's Interest Coverage is ranked worse than
58.33% of 180 companies
in the Restaurants industry
Industry Median: 5.73 vs QSR: 4.04

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Restaurant Brands International Interest Coverage Historical Data

The historical data trend for Restaurant Brands International's Interest Coverage 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.

* Premium members only.

Restaurant Brands International Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.75 3.74 3.80 3.21 3.93

Restaurant Brands International Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 4.20 4.32 3.78 3.74 4.31

Competitive Comparison

For the Restaurants subindustry, Restaurant Brands International's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Restaurant Brands International's Interest Coverage falls into.



Restaurant Brands International Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Restaurant Brands International's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Restaurant Brands International's Interest Expense was $-481 Mil. Its Operating Income was $1,890 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,319 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*1890/-481
=3.93

Restaurant Brands International's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Restaurant Brands International's Interest Expense was $-123 Mil. Its Operating Income was $530 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,260 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*530/-123
=4.31

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Restaurant Brands International  (NYSE:QSR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Restaurant Brands International Interest Coverage Related Terms

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


Restaurant Brands International Business Description

Restaurant Brands International logo
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 more than $35 billion in 2021 systemwide sales across a footprint that spans more than 28,000 restaurants and 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 Horton's supply chain operations. Formed in 2014 after 3G Capital's acquisition of Tim Horton's International, the Restaurant Brands portfolio now includes Burger King (19,250 units), Tim Horton's (5,300 units), and Popeyes Louisiana Kitchen (3,700 units). The 2021 acquisition of Firehouse Subs brings another 1,200 units and $1.1 billion in systemwide sales in-house.
Executives
Fulton Duncan officer: Chief Corporate Officer C/O RESTAURANT BRANDS INTERNATIONAL INC. 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Housman Jeffrey officer: See Remarks C/O RESTAURANT BRANDS INTERNATIONAL INC. 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Sweeney Thecla director C/O RESTAURANT BRANDS INTERNATIONAL 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Curtis Thomas Benjamin officer: See Remarks 30 FRANK LLOYD WRIGHT DR ANN ARBOR MI 48105
Lemann Marc director C/O RESTAURANT BRANDS INTERNATIONAL INC. 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Shear David Chan officer: President, International C/O RESTAURANT BRANDS INTERNATIONAL INC. 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Siddiqui Sami A. officer: Brand Pres., Popeyes, Americas C/O RESTAURANT BRANDS INTERNATIONAL INC. 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Melbourne Jason director C/O RESTAURANT BRANDS INTERNATIONAL INC. 5707 BLUE LAGOON DRIVE MIAMI FL 33126
De Limburg Stirum Maximilien director C/O RESTAURANT BRANDS INTERNATIONAL INC. 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Prato John F. director C/O RESTAURANT BRANDS INTERNATIONAL INC. 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Finazzo Christopher L. officer: See Remarks C/O SEAWORLD ENTERTAINMENT, INC. 6240 SEA HARBOR DR ORLANDO FL 32821
Schwan Axel Mr officer: Pres., Tim Hortons Americas 5505 BLUE LAGOON DRIVE MIAMI FL 33126
Machado Fernando officer: Chief Marketing Officer 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Athayde Felipe A officer: Brand Pres., Popeyes, Americas 5707 BLUE LAGOON DRIVE MIAMI FL 33126
Khosrowshahi Golnar director C/O RESTAURANT BRANDS INTERATIONAL INC. 5505 BLUE LAGOON DRIVE MIAMI FL 33126

Restaurant Brands International Headlines

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