QualityDipStocks / Consumer Discretionary · Restaurants
Restaurant Brands International QSR
Outside our quality screen, so we don’t track its dips. It’s 11% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate.
- Fair value est.
- $96.65+33%
- Market Value
- forming
- Off 52-wk high
- −11%
- Risk vs market
- Lowbeta 0.07
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $72.41
- 52-wk lowlowest close, 1 year$65.69−9.3%
- PriceFri Oct 30 close$72.41you are here
- 52-wk highhighest close, 1 year$81.67+12.8%
- Fair value est.base case$96.65+33.5%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 13.2% ±2 points. Bear = 10.5% and 11.2%; bull = 8.5% and 15.2% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
What the price implies To be worth today’s price, QSR’s free cash flow would need to grow about 8% a year for five years; our estimate uses 13%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much QSR moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Has moved mostly independently of the market, but its own price swings are 1.9× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.07
- Volatility
- 24% vs 13% SPY
- Correlation SPY
- 0.04
- Correlation QQQ
- −0.07
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $96.65, 33% above the price.
ProfitabilityReturn on equity of 41% over the last 12 months.
ProfitabilityOperating margin of 27% over the last 12 months.
Cash returnsDividend yield of 3.5% ($1.2B paid over 12 months, 77% of earnings).
GrowthSales compounded 13% a year from FY2022 to FY2025.
Top bearish points 5 of 5
ProfitabilityReturn on equity fell 20 points in two fiscal years, to 21% in FY2025.
ProfitabilityOperating margin narrowed to 23.3% in FY2025 from 29.2% in FY2023 (SEC filings).
GrowthDiluted EPS fell 26% to $2.35 in FY2025.
Balance sheetNet debt of $12.3B, 37% of the market cap (Sep 30, 2026).
QualityDoesn’t pass our quality screen: net debt 5.0× EBITDA (limit 3×).
Who’s talking about it
Notable investors, executives, analysts and public figures on Restaurant Brands International in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Restaurants
All fundamentals
P/E 22.1 · FCF yield 4.8% · ROE 41%
Valuation
- P/E
- 22.1×Consumer Discretionary median 20.9×
- Price / FCF
- 20.9×
- FCF yield
- 4.8%
- EV / EBITDA
- 15.4×
- Price / sales
- 3.39×
- Price / book
- 8.40×
- Market cap
- $33.1Bprice × diluted shares
- Enterprise value
- $45.4B
Growth
- Revenue, 12 months
- $9.8B
- Sales growth, 12 months
- +5.5%vs the 12 months before
- Sales growth, 3 yrs
- +13.2%/yrfrom FY2022
- Diluted EPS, 12 months
- $4.29
- EPS growth, last FY
- −26.1%
- Net income, 12 months
- $1.5B
- Net income growth
- +63%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- 27.0%
- Net margin
- 15.3%
- FCF margin
- 16.2%
- Return on equity
- 41%
- Return on invested capital
- 16%
Balance sheet
- Cash & short-term inv.
- $974M
- Total debt
- $13.2B
- Net cash
- −$12.3B
- Debt / equity
- 3.36×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $1.6B
- FCF growth, 12 months
- +13%
- Dividend yield
- 3.50%$1.2B paid
- Payout ratio
- 77%
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- 0.0%diluted shares vs a year ago
- Stock-based comp
- $142M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Restaurant Brands International’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $96.65 · FCF value $86.15
Assumes 13.2% growth for 5 years (revenue grew 13.2% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $3.46 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 29, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 45 · 5 days −3.9%
The business
FCF $1.6B · Sales +3%
- Free cash flow, 12 months$1.6B
- Free-cash-flow yield4.8%
- Free-cash-flow margin16%
- Gross margin34%
- Operating margin27%
- Return on invested capital12%
- Return on equity40%
- Sales growth (latest quarter vs year-ago quarter)+3%
- Net debt / EBITDA5.0×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
QSR is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.