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1. Company Snapshot

1.a. Company Description

Restaurant Brands International Inc.operates as quick service restaurant company in Canada and internationally.It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS).


The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and others.It is also involved in owning and franchising BK, a fast food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, french fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items.In addition, the company owns and franchises FHS restaurants quick service restaurants that offer subs, soft drinks, and local specialties.


As of February 15, 2022, the company had approximately 29,000 restaurants in 100 countries under the Tim Hortons, Burger King, Popeyes, And Firehouse Subs brands.Restaurant Brands International Inc.was founded in 1954 and is headquartered in Toronto, Canada.

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1.b. Last Insights on QSR

Restaurant Brands International's recent performance was driven by strong Q3 results, with revenue rising to $2.45 billion and net income reaching $315 million, fueled by sales growth in international markets and the Tim Hortons brand. The company's business streamlining efforts, including refranchising Burger King and seeking new partnerships in China, have bolstered investor confidence. Additionally, management reaffirmed its outlook for over 8% organic adjusted operating income growth through 2028. Guggenheim raised its price target on the company to $78, citing encouraging results.

1.c. Company Highlights

2. Restaurant Brands International Delivers Strong 2025 Results

Restaurant Brands International Inc. (RBI) reported a strong financial performance in 2025, with organic adjusted operating income growth of 8.3% and nominal adjusted EPS growth of over 10%. The company's actual EPS came out at $1.32, beating estimates of $1.12. Revenues grew by 5.3% system-wide, driven by a 2.4% comparable sales growth and 2.9% net restaurant growth. The company's three largest businesses, Tim Hortons, Burger King, and International, all outperformed their respective categories.

Publication Date: Feb -14

📋 Highlights
  • Overall Financial Growth:: 8.3% organic adjusted operating income growth and over 10% nominal adjusted EPS growth in 2025, driven by strong top-line performance.
  • Tim Hortons Outperformance:: 2.8% comparable sales growth in Canada, outperforming the QSR industry by nearly 2 points, with iced espresso beverages contributing 27% of beverage sales in Q4.
  • Burger King Resilience:: Outperformed the burger QSR industry in 9 of 12 quarters, with 1.6% US comp sales growth and sustained momentum from the "Reclaim the Flame" strategy.
  • International Segment Strength:: 6.1% Q4 comparable sales growth, 4.9% net restaurant expansion, and robust performance in EMEA and Asia Pacific, including double-digit growth in Japan.
  • Popeyes Restructuring:: Net restaurant growth of 1.6% but -3.2% comp sales decline, prompting operational focus and leadership changes to restore brand performance and franchisee confidence.

Segment Performance

Tim Hortons delivered a 2.8% comparable sales growth in Canada, outperforming the broader Canadian QSR industry by nearly two points. Burger King's US comparable sales grew 1.6% for the full year, including 2.6% in the fourth quarter, driven by the Reclaim the Flame strategy. The International segment performed well, with a 4.9% comparable sales growth, including 6.1% in the fourth quarter.

Valuation Metrics

With a P/E Ratio of 23.58, the company's valuation appears reasonable, considering its strong growth prospects. The EV/EBITDA ratio of 9.74 also suggests a relatively attractive valuation. Additionally, the Dividend Yield of 3.75% provides a decent return for income investors.

Outlook and Guidance

RBI expects to deliver a fourth consecutive year of 8% AOI growth in 2026, supported by a strong top line and continued flow-through to earnings. The company has provided guidance on segment G&A, net adjusted interest expense, and CapEx, which is expected to be around $400 million. Analysts estimate next year's revenue growth at 2.9%, which is slightly lower than the company's historical growth rate.

Popeyes US Performance and Plans

Popeyes US reported a decline in comparable sales, but the company is taking decisive action to put the brand back on track. The company plans to focus on improving operations and bringing the marketing and product focus back to the core of the business. This includes hand-battered and fried bone-in chicken, tenders, and sandwiches.

Tim Hortons Progress

Tim Hortons has made progress on speed of service, with remodels enhancing the back of house and allowing for faster service in the morning. The company's loyalty program has also seen significant growth, with 33% of sales coming from loyalty members in 2025.

3. NewsRoom

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Assessing Restaurant Brands International (NYSE:QSR) Valuation After Its Recent Share Price Momentum

Dec -07

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APi Group Corporation (APG): A Bull Case Theory

Dec -04

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Tims China and Tencent’s CarbonXmade Launch Innovative Eco-friendly Straw Made with Captured CO₂

Dec -03

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CMG Stock Down 35% in 6 Months: Buy the Dip or Brace for More Pain?

Dec -03

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Burger King doubles down on burgers amid chicken craze

Dec -02

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Teradyne upgraded, Circle Internet initiated: Wall Street's top analyst calls

Dec -02

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Goldman Sachs (GS) Is Up 6.7% After Securing RBI Japan Negotiation Rights and $120M Bond Issuances – What's Changed

Nov -30

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Is Restaurant Brands International’s 10% Rally Justified After Expansion News?

Nov -29

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.49%)

6. Segments

Tim Hortons

Expected Growth: 7%

Tim Hortons' 7% growth is driven by strategic menu innovation, successful marketing campaigns, and expansion into new markets. Additionally, the brand's focus on digital transformation, including mobile ordering and self-service kiosks, has improved customer experience and increased operational efficiency. Furthermore, the company's efforts to enhance its loyalty program and partnerships with third-party delivery services have contributed to the growth.

Burger King

Expected Growth: 9%

Burger King's 9% growth is driven by successful marketing campaigns, menu innovation, and digital transformation. The brand's focus on value, convenience, and customer experience has attracted a wider customer base. Additionally, strategic partnerships, such as the Impossible Whopper launch, have boosted sales. Expansion in high-growth markets, like Asia, and effective cost management have also contributed to the segment's growth.

International

Expected Growth: 6%

International segment growth driven by expansion in high-growth markets, strategic partnerships, and menu innovation. Strong brand recognition and marketing efforts contribute to increased brand awareness. Additionally, digital transformation and mobile ordering capabilities enhance customer experience, driving sales growth.

Popeyes

Expected Growth: 10%

Popeyes' 10% growth driven by successful menu innovation, including chicken sandwich launches, and effective marketing campaigns. Expansion in high-growth markets, such as Asia and Latin America, also contributes to growth. Additionally, digital transformation efforts, including mobile ordering and delivery, enhance customer experience and increase sales.

Firehouse Subs

Expected Growth: 5%

Firehouse Subs' 5% growth is driven by its strong brand recognition, loyalty program, and strategic expansion into new markets. The brand's focus on hot subs and sandwiches, as well as its firehouse-themed restaurants, appeals to a wide customer base. Additionally, Restaurant Brands International's resources and expertise have enabled Firehouse Subs to invest in digital transformation, improving customer experience and driving sales.

7. Detailed Products

Burger King

Fast-food restaurant chain serving burgers, fries, and other sandwiches

Tim Hortons

Coffee and baked goods chain offering breakfast sandwiches and coffee

Popeyes

Fast-food chain specializing in fried chicken and Cajun-inspired menu items

Firehouse Subs

Fast-casual sandwich chain offering hot subs and salads

8. Restaurant Brands International Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Restaurant Brands International Inc. faces moderate threat from substitutes, as customers have various options for dining out or ordering in, but the company's strong brand recognition and loyalty programs help mitigate this threat.

Bargaining Power Of Customers

Restaurant Brands International Inc. faces high bargaining power from customers, as they have many options for dining out and can easily switch to competitors, but the company's loyalty programs and rewards help to retain customers.

Bargaining Power Of Suppliers

Restaurant Brands International Inc. has a low bargaining power from suppliers, as it is a large company with significant purchasing power, allowing it to negotiate favorable prices and terms with its suppliers.

Threat Of New Entrants

Restaurant Brands International Inc. faces a low threat from new entrants, as the company has a strong brand presence and significant resources, making it difficult for new competitors to enter the market and gain traction.

Intensity Of Rivalry

Restaurant Brands International Inc. operates in a highly competitive industry, with many established players, leading to a high intensity of rivalry, but the company's strong brand recognition and marketing efforts help it to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.51%
Debt Cost 3.95%
Equity Weight 16.49%
Equity Cost 8.58%
WACC 4.71%
Leverage 506.45%

11. Quality Control: Restaurant Brands International Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
RBI

A-Score: 6.2/10

Value: 3.2

Growth: 6.2

Quality: 5.3

Yield: 7.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Darden

A-Score: 6.1/10

Value: 4.0

Growth: 6.0

Quality: 5.4

Yield: 6.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Wendy's

A-Score: 5.6/10

Value: 6.3

Growth: 5.9

Quality: 4.8

Yield: 9.0

Momentum: 0.0

Volatility: 7.3

1-Year Total Return ->

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Texas Roadhouse

A-Score: 5.4/10

Value: 2.6

Growth: 8.2

Quality: 5.5

Yield: 4.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Domino's Pizza

A-Score: 5.4/10

Value: 4.2

Growth: 6.4

Quality: 6.0

Yield: 3.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Wingstop

A-Score: 4.4/10

Value: 2.5

Growth: 9.4

Quality: 6.9

Yield: 1.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

97.76$

Current Price

97.76$

Potential

-0.00%

Expected Cash-Flows