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Restaurant Brands International Beneish M-Score

: -2.59 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Restaurant Brands International's Beneish M-Score or its related term are showing as below:

QSR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.57   Max: 0.83
Current: -2.59

During the past 10 years, the highest Beneish M-Score of Restaurant Brands International was 0.83. The lowest was -3.04. And the median was -2.57.


Restaurant Brands International Beneish M-Score Historical Data

The historical data trend for Restaurant Brands International's Beneish M-Score 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
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.54 -3.04 -2.20 -2.50 -2.67

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
Beneish M-Score 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 0.83 -2.44 -2.67 -2.54 -2.59

Competitive Comparison

For the Restaurants subindustry, Restaurant Brands International's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Restaurant Brands International's Beneish M-Score falls into.



Restaurant Brands International Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Restaurant Brands International for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9059+0.528 * 1.0043+0.404 * 1.0536+0.892 * 1.1368+0.115 * 0.9766
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1549+4.679 * -0.035-0.327 * 1.0608
=-2.63

* 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.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $551 Mil.
Revenue was 1639 + 1451 + 1546 + 1495 = $6,131 Mil.
Gross Profit was 671 + 580 + 632 + 647 = $2,530 Mil.
Total Current Assets was $1,568 Mil.
Total Assets was $22,754 Mil.
Property, Plant and Equipment(Net PPE) was $3,097 Mil.
Depreciation, Depletion and Amortization(DDA) was $198 Mil.
Selling, General, & Admin. Expense(SGA) was $537 Mil.
Total Current Liabilities was $1,763 Mil.
Long-Term Debt & Capital Lease Obligation was $14,260 Mil.
Net Income was 236 + 183 + 179 + 221 = $819 Mil.
Non Operating Income was 11 + 1 + -41 + -5 = $-34 Mil.
Cash Flow from Operations was 435 + 234 + 471 + 510 = $1,650 Mil.
Total Receivables was $535 Mil.
Revenue was 1438 + 1260 + 1358 + 1337 = $5,393 Mil.
Gross Profit was 607 + 506 + 537 + 585 = $2,235 Mil.
Total Current Assets was $2,528 Mil.
Total Assets was $23,241 Mil.
Property, Plant and Equipment(Net PPE) was $3,176 Mil.
Depreciation, Depletion and Amortization(DDA) was $198 Mil.
Selling, General, & Admin. Expense(SGA) was $409 Mil.
Total Current Liabilities was $1,649 Mil.
Long-Term Debt & Capital Lease Obligation was $13,779 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(551 / 6131) / (535 / 5393)
=0.08987115 / 0.09920267
=0.9059

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2235 / 5393) / (2530 / 6131)
=0.41442611 / 0.41265699
=1.0043

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1568 + 3097) / 22754) / (1 - (2528 + 3176) / 23241)
=0.7949811 / 0.75457166
=1.0536

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=6131 / 5393
=1.1368

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(198 / (198 + 3176)) / (198 / (198 + 3097))
=0.05868405 / 0.06009105
=0.9766

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(537 / 6131) / (409 / 5393)
=0.08758767 / 0.07583905
=1.1549

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((14260 + 1763) / 22754) / ((13779 + 1649) / 23241)
=0.70418388 / 0.66382686
=1.0608

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(819 - -34 - 1650) / 22754
=-0.035

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Restaurant Brands International has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.


Restaurant Brands International Beneish M-Score Related Terms

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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

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