Restaurant Brands International Inc. Common Shares (QSR)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses that earn high returns on tangible capital and can reinvest at good rates. Restaurant Brands owns four familiar quick-service brands - Tim Hortons, Burger King, Popeyes and Firehouse Subs - and largely franchises them, which can be a durable model and a modest moat. At the close on 2026-10-26, the shares were $74.48, with FairStock calculations showing P/E of 18.71, P/B of 6.75, ROE of 34.79%, ROCE of 6.45%, and EV/EBITDA of 16.89. The high ROE is flattered by leverage, while ROCE is modest. Financial health is mixed: debt-to-equity is 2.90 and Altman Z is 1.38, but Piotroski is 8/9 and trailing free cash flow is $1.6B, a 4.8% FCF yield. The 3.57% dividend yield and beta of 0.53 suggest income and defensiveness, not excitement. Growth is uneven. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.5B, net income $665.0M and diluted EPS $1.45, up from $263.0M and $0.57 in fiscal Q2 2025. But FY2025 revenue was $9.4B while net income was $1.1B and diluted EPS $2.35, versus FY2024 net income $1.4B and EPS $3.18 and FY2023 net income $1.7B and EPS $3.76. FairStock calls it a slow grower: profit 7.5% a year over five years and revenue 13.7%. The Graham Number of $31.43 and -139.71% margin of safety imply the price is far above a conservative asset-based value. A fair business, but not a bargain.

In plain English: Restaurant Brands International runs fast-food and coffee chains including Tim Hortons, Burger King, Popeyes and Firehouse Subs, mostly through franchisees. The business is profitable and produces steady cash, but it carries a lot of debt and annual earnings have been uneven. At the 2026-10-26 close of $74.48, the price looks fair to expensive compared with cautious measures of its worth.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer