The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 1.56 is in distress zone. This implies bankruptcy possibility in the next two years.
Restaurant Brands International LP has a Altman Z-Score of 1.54, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
RSTRF'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.07 Med: 1.34 Max: 1.62
Current: 1.56
During the past 13 years, Restaurant Brands International LP's highest Altman Z-Score was 1.62. The lowest was 1.07. And the median was 1.34.
Restaurant Brands International LP (OTCPK:RSTRF) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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 Altman Z-Score Chart
RSTRF vs MCD, SBUX, CMG: Altman Z-Score Comparison
For the Restaurants subindustry, Restaurant Brands International LP's Altman Z-Score, along with its competitors' market caps and Altman Z-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 LP Altman Z-Score vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International LP's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Restaurant Brands International LP's Altman Z-Score falls into.
Restaurant Brands International LP Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Restaurant Brands International LP (RSTRF) has a Altman Z-Score of 1.54 as of Jun. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Restaurant Brands International LP and its competitors. This is 15% above median its historical median of 1.34. Over the past decade, Restaurant Brands International LP's Altman Z-Score has ranged from 1.07 to 1.62. According to the industry distribution chart, Restaurant Brands International LP ranks #236 out of 360 companies in the Restaurants industry, placing it in the top 65.6%.
Is Restaurant Brands International LP's Altman Z-Score too high?
Restaurant Brands International LP's current Altman Z-Score of 1.54 is 15% above median its 10-year median of 1.34. Over the past 10 years, this metric has ranged from a low of 1.07 to a high of 1.62. The Restaurants industry median Altman Z-Score is 2.23. Restaurant Brands International LP's value of 1.54 is 30.8% below this industry median. Based on the distribution chart, Restaurant Brands International LP ranks #236 out of 360 companies in the Restaurants industry, which is below the industry midpoint. Overall, Restaurant Brands International LP has a GF Score™ 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 Altman Z-Score compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Restaurant Brands International LP ranks #236 out of 360 companies for Altman Z-Score. This places Restaurant Brands International LP in the lower half of its industry. The industry median Altman Z-Score is 2.23. Restaurant Brands International LP's value of 1.54 is 30.8% below this benchmark. Historically, Restaurant Brands International LP's own Altman Z-Score has ranged from 1.07 to 1.62 over the past decade. While the company's 10-year median is 1.34 vs. the industry median of 2.23, 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 Altman Z-Score for a Restaurants company?
The median Altman Z-Score among Restaurants companies is 2.23, based on 360 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Restaurant Brands International LP's current Altman Z-Score of 1.54 is 30.8% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Restaurant Brands International LP and its competitors. For the Restaurants industry, the median Altman Z-Score is 2.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Restaurant Brands International LP's current Altman Z-Score is 1.54, which is 15% above median its own 10-year median of 1.34. 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 Altman Z-Score is 1.54, which is 15% above median its 10-year median of 1.34 and 30.8% below the Restaurants industry median of 2.23. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Restaurant Brands International LP (RSTRF), the current Altman Z-Score is 1.54 as of Jun. 25, 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:
Altman Z-Score: 1.54 (15% above median its 10-year median of 1.34)
GF Value™: $92.18 vs. price of $72.33 (21.5% below fair value)
Industry Position: 30.8% below the Restaurants median (#236 of 360)
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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