Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Restaurant Brands International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 9.08%.
As of today (2026-07-15), Restaurant Brands International's WACC % is 5.12%. Restaurant Brands International's ROC % is 8.15% (calculated using TTM income statement data).
Restaurant Brands International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Restaurant Brands International (TSX:QSR) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Restaurant Brands International's WACC % is 5.12%. Restaurant Brands International's ROC % is 8.15% (calculated using TTM income statement data).
Restaurant Brands International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Restaurant Brands International ROC % Related Terms
Restaurant Brands International ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (TSX:QSR) has a ROC % of 9.08% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Restaurant Brands International and its competitors.
Is Restaurant Brands International's ROC % too high?
Restaurant Brands International's current ROC % is 9.08%. The Restaurants industry median ROC % is 4.24. Restaurant Brands International's value of 9.08% is 114.2% above this industry median. Overall, Restaurant Brands International has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Restaurant Brands International's ROC % compare to MCD and SBUX?
Restaurant Brands International's ROC % of 9.08% can be compared against companies in the Restaurants industry. The industry median ROC % is 4.24. Restaurant Brands International's value of 9.08% is 114.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Restaurants company?
The median ROC % among Restaurants companies is 4.24, based on 356 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Restaurant Brands International's current ROC % of 9.08% is 114.2% above 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Restaurant Brands International and its competitors. For the Restaurants industry, the median ROC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Restaurant Brands International's current ROC % is 9.08%. 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 stock overvalued right now?
Based on GuruFocus' analysis, Restaurant Brands International (TSX:QSR) is currently considered Modestly Undervalued. The stock's GF Value™ is C$120.45, compared to a current price of C$104.19 — trading 13.5% below its estimated fair value. The current ROC % is 9.08% and 114.2% above the Restaurants industry median of 4.24. Restaurant Brands International's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Restaurant Brands International (TSX:QSR), the current ROC % is 9.08% 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 (TSX:QSR) Overvalued in 2026?
Based on GuruFocus' analysis, Restaurant Brands International stock appears to be undervalued.
The current stock price of C$104.19 is trading 13.5% below its estimated GF Value™ of C$120.45.
GuruFocus considers Restaurant Brands International to be Modestly Undervalued.
Key valuation signals for TSX:QSR:
ROC %: 9.08%
GF Value™: C$120.45 vs. price of C$104.19 (13.5% below fair value)
Industry Position: 114.2% above the Restaurants median
No single metric tells the full story. See the TSX:QSR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Restaurant Brands International Business Description
Restaurant Brands generates about $47 billion in system sales across more than 33,000 restaurants in over 120 markets, making it one of the largest restaurant companies globally. Its banners include Burger King (7,025 stores), Tim Hortons (4,586), Popeyes (3,578), and Firehouse Subs (1,449), concentrated in the US and Canada, with these brands also comprising 16,403 franchised international locations as of year-end 2025. The firm primarily earns revenue from franchise and property fees, supply chain sales within the Tim Hortons segment, company-operated restaurants, and advertising royalties.
89GF Score
Get the complete analysis for TSX:QSR
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:QSR has been successfully added to your 
