Stock Analysis

Stock Analysis · Restaurant Brands International Inc (QSR)

Overview

Restaurant Brands International Inc. (QSR) is a global quick-service restaurant (fast food) company that owns and franchises well-known brands, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs. Its business model is largely built around franchising: many restaurants are owned and operated by franchisees, while the company provides the brand, marketing, menu standards, technology, and supply chain programs.

Because franchising is a central pillar, QSR’s economics are often different from a restaurant company that directly operates most locations. A franchisor typically earns revenue from ongoing royalties and fees tied to franchisee sales, plus other streams such as rental income (where the company controls certain real estate/leases), supply chain and distribution-related income, and sales from any company-operated restaurants (which tend to be a smaller portion for heavily franchised systems).

Across its disclosures, QSR commonly describes these main revenue “building blocks” (exact mix can change by segment and year):

Royalties and franchise fees (ongoing payments typically linked to franchisee sales)
Sales at company restaurants (where QSR directly operates locations)
Rental income (in markets where QSR controls property or master leases)
Supply chain and distribution-related revenue (where applicable by brand/region)

Scale and recent direction (high level): in the last several years, total revenue increased meaningfully, from about $5.7B (2021) to about $9.4B (2025). Over the same period, operating income remained sizable, while interest expense was also a material cost item—important context for a company that uses significant leverage.

From 2021 to 2025, revenue rose from $5.739B to $9.434B. Over that span, operating income stayed above $1.8B each year, while interest expense remained significant (hundreds of millions annually), highlighting how financing costs can influence net results even when restaurant-level demand is healthy.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 23, 2026
Context
Sector	Consumer Cyclical
Industry	Restaurants
Market Cap ⓘ	$31.37B
Beta ⓘ	0.59
Fundamental
P/E Ratio ⓘ	26.17	27.46
Profit Margin ⓘ	8.23%	7.73%
Revenue Growth ⓘ	7.40%	7.35%
Debt to Equity ⓘ	478.23%	99.20%
PEG ⓘ	1.16
Free Cash Flow ⓘ	$1.40B

QSR’s market capitalization is about $31.4B, placing it among the larger global restaurant groups. The stock’s beta of ~0.59 suggests it has historically moved less than the broader market on average (though that does not prevent drawdowns).

On profitability, the latest profit margin is ~8.2%, slightly above the restaurant industry median shown here (~7.7%). Revenue growth over the last year is about 7.4%, roughly in line with the industry median (~7.35%).

The most notable item in these metrics is leverage: QSR’s debt-to-equity is ~478%, far above the industry median displayed (~99%). This highlights a capital structure that can amplify results in good periods but can also increase sensitivity to interest rates, refinancing conditions, and business downturns.

Free cash flow over the last twelve months is about $1.40B, indicating meaningful cash generation after operating expenses and capital spending (a key consideration for a franchising-heavy model).

Growth (Medium)

The quick-service restaurant industry is mature in many developed markets, but it can still grow through a combination of new restaurant openings, international expansion, menu innovation, and higher average check (pricing and mix). For a global franchisor like QSR, growth is often driven less by building company-owned restaurants and more by expanding the franchise footprint and increasing system-wide sales (which then supports royalties and related income).

Strategically, QSR’s multi-brand structure can support growth by diversifying demand across different customer occasions (coffee and bakery at Tim Hortons, burgers at Burger King, chicken at Popeyes, and sandwiches at Firehouse Subs). In addition, franchising can enable expansion with less corporate capital tied up in each new unit, while still producing recurring fee streams.

The year-over-year revenue growth pattern shows stronger quarters at times (notably in parts of 2024) and more moderate growth more recently, ending around 7.4% in the most recent period shown. This profile fits a large consumer brand operator where growth can be steady but not uniform quarter to quarter.

Free cash flow has remained substantial over the period shown (roughly $0.94B to $1.59B across the displayed dates), with the latest around $1.40B. Consistent cash generation can be important for funding brand investment, technology, debt service, and shareholder returns, but the sustainability of that cash flow depends on franchisee health, consumer demand, and financing costs.