NYSE:QSR
Restaurant Brands International Inc.
A global leader in the quick-service restaurant industry owning four major brands with a strategic focus on digital growth and franchise expansion.
Key Metrics
Investment Thesis
Bull Case
QSR remains a high-yield dividend stock with a resilient franchise model that insulates it from direct consumer spending downturns better than company-owned peers. The diverse brand portfolio provides cross-hedging against regional economic shifts, while the strong balance sheet and consistent cash generation support a reliable shareholder return program.
Bear Case
Recent declines in net income and the pressure on operating margins due to rising input costs suggest that past growth rates may be unsustainable without significant operational restructuring. High levels of goodwill and accumulated other comprehensive losses indicate potential write-down risks if franchise performance falters or foreign exchange conditions deteriorate further.
About Restaurant Brands International Inc.
Restaurant Brands International Inc. operates globally as a leading multi-brand restaurant company serving fast-food consumers across North America, Europe, Latin America, Asia, and the Middle East. The company owns and franchises iconic brands including Burger King, Tim Hortons, Popeyes, and Dunkin', leveraging a diverse portfolio to capture value across different market segments and consumer preferences.
Analysis
Management Discussion
While revenue reached $9.43B in 2025, net income declined to $1.07B, reflecting a challenging environment where profit before tax grew only modestly despite record sales. The company generated strong operating cash flow of $1.71B but utilized nearly all liquidity for share repurchases and dividends, leaving minimal room for further aggressive M&A or debt reduction without external financing.
Industry Overview
The quick-service restaurant industry is characterized by rapid innovation, intense competition for market share, and a critical reliance on digital ordering capabilities to drive same-store sales growth. Success in this sector now depends heavily on supply chain efficiency and the ability to deliver value at affordable price points in an inflationary macroeconomic environment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.50B | $7.02B | $8.41B | $9.43B |
| Cost of Revenue | $2.31B | $2.44B | $0 | $0 |
| Gross Profit | $4.19B | $4.59B | $8.41B | $9.43B |
| Operating Expenses | $2.29B | $2.54B | $5.99B | $7.23B |
| Operating Income | $1.90B | $2.05B | $2.42B | $2.20B |
| G&A | $631.0M | $704.0M | $733.0M | $741.0M |
| Stock-Based Comp | $136.0M | $194.0M | $172.0M | $151.0M |
| D&A | $190.0M | $191.0M | $264.0M | $301.0M |
| Depreciation | $135.0M | $137.0M | $186.0M | $210.0M |
| Amortization | $39.0M | $37.0M | $58.0M | $69.0M |
| Other OpEx | $1.66B | $1.83B | $5.25B | $6.49B |
| Non-Operating Income | $-533.0M | $-598.0M | $-610.0M | $-518.0M |
| Interest Income | $7.0M | $40.0M | $39.0M | $31.0M |
| Pre-Tax Income | $1.36B | $1.45B | $1.81B | $1.68B |
| Income Tax | $-117.0M | $-265.0M | $364.0M | $483.0M |
| Continuing Ops | $1.48B | $1.72B | $1.45B | $1.20B |
| Discontinued Ops | $0 | $0 | $0 | $-126.0M |
| Net Income | $1.48B | $1.72B | $1.45B | $1.07B |
| Minority Interest | $474.0M | $528.0M | $424.0M | $299.0M |
| Net to Common | $1.01B | $1.19B | $1.02B | $776.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.05B | $2.17B | $2.28B | $2.83B |
| Inventory | $133.0M | $166.0M | $142.0M | $205.0M |
| Prepaid Expenses | $123.0M | $119.0M | $108.0M | $179.0M |
| Other Current Assets | $1.79B | $1.89B | $2.03B | $2.45B |
| Long-Term Assets | $20.70B | $21.22B | $22.35B | $22.79B |
| PP&E (Net) | $1.40B | $1.33B | $1.18B | $1.22B |
| Intangibles | $10.99B | $11.11B | $10.92B | $11.19B |
| Goodwill | $5.69B | $5.78B | $5.99B | $6.31B |
| Operating Leases | $1.08B | $1.12B | $1.85B | $1.96B |
| Other LT Assets | $1.37B | $1.72B | $2.30B | $2.00B |
| Total Assets | $22.75B | $23.39B | $24.63B | $25.61B |
| Current Liabilities | $2.12B | $2.14B | $2.36B | $2.89B |
| Accounts Payable | $758.0M | $790.0M | $765.0M | $866.0M |
| Current Debt | $95.0M | $67.0M | $187.0M | $32.0M |
| Current Leases | $137.0M | $147.0M | $193.0M | $200.0M |
| Taxes Payable | $190.0M | $129.0M | $228.0M | $188.0M |
| Other Current Liab | $693.0M | $766.0M | $729.0M | $1.32B |
| Long-Term Liabilities | $16.36B | $16.52B | $17.43B | $17.57B |
| Long-Term Debt | $12.84B | $12.85B | $13.46B | $13.25B |
| LT Operating Leases | $1.03B | $1.06B | $1.77B | $1.90B |
| Other LT Liab | $1.82B | $1.99B | $1.63B | $1.82B |
| Total Liabilities | $18.48B | $18.66B | $19.79B | $20.46B |
| Shareholders' Equity | $4.27B | $4.73B | $4.84B | $5.16B |
| Retained Earnings | $1.12B | $1.60B | $1.86B | $1.79B |
| AOCI | $-679.0M | $-706.0M | $-1.11B | $-1.02B |
| Total L&E | $22.75B | $23.39B | $24.63B | $25.61B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.48B | $1.72B | $1.45B | $1.07B |
| Non-Cash Adjustments | $-677.0M | $-685.0M | $84.0M | $400.0M |
| Working Capital Changes | $685.0M | $290.0M | $-26.0M | $239.0M |
| Cash from Operations | $1.49B | $1.32B | $1.50B | $1.71B |
| Capital Expenditures | $100.0M | $120.0M | $201.0M | $265.0M |
| Cash from Investing | $-64.0M | $11.0M | $-660.0M | $-318.0M |
| Debt Issuances | $2.0M | $55.0M | $2.45B | $0 |
| Share Buybacks | $326.0M | $500.0M | $0 | $0 |
| Dividends Paid | $971.0M | $990.0M | $1.03B | $1.11B |
| Cash from Financing | $-1.31B | $-1.37B | $-625.0M | $-1.44B |
| FX Effect | $-28.0M | $1.0M | $-23.0M | $16.0M |
| Net Change in Cash | $91.0M | $-39.0M | $195.0M | $-105.0M |
| Beginning Cash | $1.09B | $1.18B | $1.14B | $1.33B |
| Ending Cash | $1.18B | $1.14B | $1.33B | $1.16B |
Frequently Asked Questions
How does Restaurant Brands International Inc. make money?
The company's revenue is primarily driven by its four distinct brand pillars: Burger King (fast-food burgers and chicken), Tim Hortons (Canadian coffee and donut specialist), Popeyes (spicy chicken sandwiches), and Dunkin' (coffee and doughnuts). Financial data indicates a significant portion of operating expenses relates to franchise royalties and supply chain costs, with substantial investments in long-term assets reflecting ongoing store expansions and renovations across its global footprint.
What are the main risks for QSR?
Inflationary pressures on food costs and labor expenses can significantly compress operating margins despite revenue growth, as evidenced by recent increases in general and administrative expenses. The company faces intense competition from fast-casual peers and the need for continuous digital transformation to maintain customer engagement and loyalty in a crowded marketplace.
What is QSR's competitive advantage?
QSR benefits from a powerful brand portfolio with deep consumer loyalty and a proven ability to adapt menus to local tastes, creating high barriers to entry for competitors. The company's franchise-heavy model allows it to leverage the capital of partners while maintaining tight operational control, resulting in robust free cash flow generation that funds dividends and strategic acquisitions.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.