# Restaurant Brands International (QSR.TO)

Canonical: https://gigainvestors.com/s/QSR.TO

Analysis as of: 2026-10-16T07:34:13.442Z. Financial observations: FY2011–FY2026.

Listing currency: CAD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 105.23 per share; close as of 2026-10-15.

Estimated value: low CAD 72.60 per share, central CAD 82.26 per share, high CAD 95.12 per share. Buy at or below the central value CAD 82.26 per share. Valuation as of 2026-10-16T07:34:13.442Z; scenarios are not confidence intervals.

Expected annual return: 8.4% at the stated quote. About 8.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.38×

- FY2018: 0.36×

- FY2019: 0.36×

- FY2020: 0.29×

- FY2021: 0.33×

- FY2022: 0.29×

- FY2023: 0.29×

- FY2024: 0.29×

- FY2025: 0.24×

- LTM to Jun 2026: 0.27×

### moat: pass

- ROIC, median of available years: 17.6%

- ROIC, second-lowest year: 14.5%

- Typical minus recent gross margin: 1.3 pp

- Typical gross margin (annual median): 41.2%

- Recent gross margin (lower of latest and 3-year median): 39.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 5.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.9%

- FY2017: 22.5%

- FY2018: 21.0%

- FY2019: 17.5%

- FY2020: 14.5%

- FY2021: 17.7%

- FY2022: 18.7%

- FY2023: 19.6%

- FY2024: 16.5%

- FY2025: 11.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.1B

- Net income, five-year total: $4.8B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.1 pp

- Working capital / revenue, final three-year average: 1.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.11×

- FY2022: 1.09×

- FY2023: 1.04×

- FY2024: 1.04×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 21.0% vs 16.5%

- Per-share earnings: 1.31 to 2.25 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: $1.6B

- Cumulative retained earnings: $1.3B

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.0%

- Per-share value change: $0.94

- Per-share value, starting three-year median: $1.31

- Per-share value, ending three-year median: $2.25

- Buybacks concentrated in cheaper years (correlation): -0.09

- Average buyback yield: 1.7%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: $5.3B

- Cumulative net income, 10 years: $7.8B

- ROIC, first three-year median: 21.0%

- ROIC, last three-year median: 16.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.31

- FY2017: $1.36

- FY2018: $1.30

- FY2019: $1.37

- FY2020: $1.05

- FY2021: $1.81

- FY2022: $2.22

- FY2023: $2.61

- FY2024: $2.25

- FY2025: $1.70

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.21×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 4.81×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.4%

- FY2017: -3.5%

- FY2018: -2.7%

- FY2019: -3.7%

- FY2020: -1.9%

- FY2021: -3.8%

- FY2022: -2.1%

- FY2023: -0.6%

- FY2024: -2.0%

- FY2025: -3.7%

## Holders

- [Seth Klarman](https://gigainvestors.com/BAUPOST): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Ackman](https://gigainvestors.com/psc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 4.1% a year for ten years · "Restaurant Brands beats Q2 profit expectations on Burger King strength" (finance.yahoo.com, Aug 2026) · sales +2.7%

Story as of 2026-10-16T09:59:59.678Z; price observation 2026-10-15.

Price needs cash profits to grow 4.1% a year for ten years

- 2025-08-07: Burger King-Owner Restaurant Brands Profit Squeezed by Higher Costs ([finance.yahoo.com](https://finance.yahoo.com/m/a286e0f9-eba5-3e7e-8df3-b098dc845612/burger-king-owner-restaurant.html))

- 2026-02-12: Restaurant Brands Slows Burger King Remodeling Program as Costs Stay Elevated ([finance.yahoo.com](https://finance.yahoo.com/m/7d2ac664-2402-35c0-8258-d0fbe82542dc/restaurant-brands-slows.html))

- 2026-08-06: Restaurant Brands beats Q2 profit expectations on Burger King strength ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/restaurant-brands-beats-q2-profit-111545366.html))

### Sales · FY2025–2026

sales +2.7%; source https://www.sec.gov/Archives/edgar/data/1618756/000161875626000017/qsr-20251231.htm; observed 2026-02-20.

- FY2017: $4.6B 

- FY2018: $5.4B 

- FY2019: $5.6B 

- FY2020: $5.0B 

- FY2021: $5.7B 

- FY2022: $6.5B 

- FY2023: $7.0B 

- FY2024: $8.4B 

- FY2025: $9.4B 

- FY2026: $9.7B 

### Gross margin · FY2025

gross margin 41.1%; source https://www.sec.gov/Archives/edgar/data/1618756/000161875626000017/qsr-20251231.htm; observed 2026-02-20.

- FY2016: 47.4% 

- FY2017: 49.1% 

- FY2018: 58.2% 

- FY2019: 42.7% 

- FY2020: 39.7% 

- FY2021: 41.4% 

- FY2022: 39.9% 

- FY2023: 39.9% 

- FY2024: 36.0% 

- FY2025: 41.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in restaurants; annual sales are USD 9.4 billion.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2025-12-31 (filed 2026-02-20); FY2025: revenue 9434000000; grossProfit 3876000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); QSR.TO: Restaurant Brands International Inc. operates as a quick service restaurant company in Canada, the United States, and internationally. It operates through six segments: Tim Hortons, Burger King, Popeyes Louisiana Kitchen, Firehouse Subs, International, and Restaurant Holdings. The company owns and franchises Tim Hortons, a coffee and baked good restaurant chain that offers beverages, sandwiches, wraps, flatbread pizzas, and others; Burger King, a quick service hamburger restaurant chain that offers flame-grilled hamburgers, chicken, and other sandwiches; Popeyes, a quick service chicken concept that offers a Louisiana style menu, including fried bone-in chicken, chicken sandwiches, chicken tenders, wings, fried shrimp, and regional items; and Firehouse Subs, which offers subs with meats and cheese, as well as chili, soups, soft drinks, and other sides. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Miami, Florida.

### Why customers stay

Margins ranged from 36% to 41.1% during 2023–25; it earns 17.6% on its capital.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2023-12-31 (filed 2026-02-20); FY2023: grossProfit / revenue = 39.9%.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2024-12-31 (filed 2026-02-20); FY2024: grossProfit / revenue = 36%.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2025-12-31 (filed 2026-02-20); FY2025: grossProfit / revenue = 41.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.16891282873120247],[2017,0.22467981507620985],[2018,0.2103480133146515],[2019,0.17506373585374954],[2020,0.1453659541894836],[2021,0.17691075034797749],[2022,0.18747530620308178],[2023,0.19594917359319766],[2024,0.16450350363324232],[2025,0.11613091715771805]]; median 0.1759872431008635. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 40% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1618756/000161875626000017/qsr-20251231.htm (filed 2026-02-20); Gross margin observations: [[2021,0.41366091653598186],[2022,0.3993850883935434],[2023,0.39903161492452294]]; range within 2 percentage points.

### Where the cash goes

Reinvests 24.9% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2016-12-31 (filed 2026-02-20); FY2016: growth capex 0; upkeep 33700000; owner earnings 754300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2017-12-31 (filed 2026-02-20); FY2017: growth capex 0; upkeep 36700000; owner earnings 793300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2018-12-31 (filed 2026-02-20); FY2018: growth capex 0; upkeep 86000000; owner earnings 706000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2019-12-31 (filed 2026-02-20); FY2019: growth capex 0; upkeep 62000000; owner earnings 766000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2020-12-31 (filed 2026-02-20); FY2020: growth capex 0; upkeep 117000000; owner earnings 558000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2021-12-31 (filed 2026-02-20); FY2021: growth capex 0; upkeep 106000000; owner earnings 933000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2022-12-31 (filed 2026-02-20); FY2022: growth capex 0; upkeep 100000000; cash acquisitions 12000000; owner earnings 1098000000. Growth capex plus acquisitions / owner earnings = 0.01092896174863388.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2023-12-31 (filed 2026-02-20); FY2023: growth capex 0; upkeep 120000000; cash acquisitions 17000000; owner earnings 1239179278.2305007. Growth capex plus acquisitions / owner earnings = 0.013718757486225345.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2024-12-31 (filed 2026-02-20); FY2024: growth capex 0; upkeep 201000000; cash acquisitions 540000000; owner earnings 1065514186.8512111. Growth capex plus acquisitions / owner earnings = 0.5067975693461187.

- Source: https://eodhd.com/api/fundamentals/QSR.US.json#2025-12-31 (filed 2026-02-20); FY2025: growth capex 41000000; upkeep 224000000; cash acquisitions 152000000; owner earnings 776000000. Growth capex plus acquisitions / owner earnings = 0.24871134020618557.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,538100000],[2017,663500000],[2018,728000000],[2019,901000000],[2020,959000000],[2021,974000000],[2022,971000000],[2023,990000000],[2024,1029000000],[2025,1108000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 1.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); QSR.TO SharesStats.PercentInsiders = 1.283 percentage points; cache date 2026-10-16.

### What could break it

"Our leverage and obligations to service our debt could adversely affect our business." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1618756/000161875626000017/qsr-20251231.htm (filed 2026-02-20); Our leverage and obligations to service our debt could adversely affect our business.

### What the price says

The price assumes cash profits grow 4.1% yearly over ten years; actual growth was 6.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.04524994958071893. Price 105.23; FX 1.4190435646374344; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9306930693069307 → FY2025 1.698030634573304. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 59.63 per share

- 2016-11: CAD 63.97 per share

- 2016-12: CAD 63.95 per share

- 2017-01: CAD 63.83 per share

- 2017-02: CAD 72.46 per share

- 2017-03: CAD 74.08 per share

- 2017-04: CAD 76.62 per share

- 2017-05: CAD 82.65 per share

- 2017-06: CAD 81.14 per share

- 2017-07: CAD 74.28 per share

- 2017-08: CAD 76.23 per share

- 2017-09: CAD 79.72 per share

- 2017-10: CAD 83.35 per share

- 2017-11: CAD 80.13 per share

- 2017-12: CAD 77.27 per share

- 2018-01: CAD 74.30 per share

- 2018-02: CAD 75.21 per share

- 2018-03: CAD 73.32 per share

- 2018-04: CAD 69.87 per share

- 2018-05: CAD 76.57 per share

- 2018-06: CAD 79.30 per share

- 2018-07: CAD 82.99 per share

- 2018-08: CAD 74.85 per share

- 2018-09: CAD 76.48 per share

- 2018-10: CAD 72.12 per share

- 2018-11: CAD 77.53 per share

- 2018-12: CAD 71.32 per share

- 2019-01: CAD 82.36 per share

- 2019-02: CAD 83.22 per share

- 2019-03: CAD 86.94 per share

- 2019-04: CAD 87.44 per share

- 2019-05: CAD 88.96 per share

- 2019-06: CAD 91.07 per share

- 2019-07: CAD 97.20 per share

- 2019-08: CAD 104.41 per share

- 2019-09: CAD 94.20 per share

- 2019-10: CAD 86.17 per share

- 2019-11: CAD 87.27 per share

- 2019-12: CAD 82.78 per share

- 2020-01: CAD 80.74 per share

- 2020-02: CAD 79.11 per share

- 2020-03: CAD 56.71 per share

- 2020-04: CAD 67.90 per share

- 2020-05: CAD 75.22 per share

- 2020-06: CAD 73.89 per share

- 2020-07: CAD 75.65 per share

- 2020-08: CAD 70.67 per share

- 2020-09: CAD 76.48 per share

- 2020-10: CAD 69.23 per share

- 2020-11: CAD 74.01 per share

- 2020-12: CAD 77.83 per share

- 2021-01: CAD 73.76 per share

- 2021-02: CAD 76.33 per share

- 2021-03: CAD 81.73 per share

- 2021-04: CAD 84.41 per share

- 2021-05: CAD 83.29 per share

- 2021-06: CAD 79.87 per share

- 2021-07: CAD 85.12 per share

- 2021-08: CAD 81.06 per share

- 2021-09: CAD 77.60 per share

- 2021-10: CAD 70.07 per share

- 2021-11: CAD 71.47 per share

- 2021-12: CAD 76.70 per share

- 2022-01: CAD 71.10 per share

- 2022-02: CAD 70.95 per share

- 2022-03: CAD 73.04 per share

- 2022-04: CAD 73.39 per share

- 2022-05: CAD 66.42 per share

- 2022-06: CAD 64.57 per share

- 2022-07: CAD 68.65 per share

- 2022-08: CAD 77.53 per share

- 2022-09: CAD 73.48 per share

- 2022-10: CAD 80.95 per share

- 2022-11: CAD 89.33 per share

- 2022-12: CAD 87.57 per share

- 2023-01: CAD 89.03 per share

- 2023-02: CAD 88.05 per share

- 2023-03: CAD 90.73 per share

- 2023-04: CAD 94.98 per share

- 2023-05: CAD 98.56 per share

- 2023-06: CAD 102.71 per share

- 2023-07: CAD 100.95 per share

- 2023-08: CAD 93.85 per share

- 2023-09: CAD 90.45 per share

- 2023-10: CAD 93.15 per share

- 2023-11: CAD 96.51 per share

- 2023-12: CAD 103.53 per share

- 2024-01: CAD 104.95 per share

- 2024-02: CAD 105.38 per share

- 2024-03: CAD 107.57 per share

- 2024-04: CAD 104.44 per share

- 2024-05: CAD 93.46 per share

- 2024-06: CAD 96.40 per share

- 2024-07: CAD 96.67 per share

- 2024-08: CAD 93.63 per share

- 2024-09: CAD 97.59 per share

- 2024-10: CAD 96.84 per share

- 2024-11: CAD 97.51 per share

- 2024-12: CAD 93.69 per share

- 2025-01: CAD 89.36 per share

- 2025-02: CAD 94.38 per share

- 2025-03: CAD 95.93 per share

- 2025-04: CAD 88.83 per share

- 2025-05: CAD 97.98 per share

- 2025-06: CAD 90.33 per share

- 2025-07: CAD 94.02 per share

- 2025-08: CAD 86.97 per share

- 2025-09: CAD 89.28 per share

- 2025-10: CAD 92.12 per share

- 2025-11: CAD 101.54 per share

- 2025-12: CAD 93.66 per share

- 2026-01: CAD 91.23 per share

- 2026-02: CAD 97.86 per share

- 2026-03: CAD 102.94 per share

- 2026-04: CAD 109.61 per share

- 2026-05: CAD 103.15 per share

- 2026-06: CAD 102.87 per share

- 2026-07: CAD 103.68 per share

- 2026-08: CAD 108.03 per share

- 2026-09: CAD 101.27 per share

- 2026-10: CAD 101.44 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 25.77 per share, central CAD 28.90 per share, high CAD 33.07 per share

- FY2017: low CAD 27.30 per share, central CAD 30.86 per share, high CAD 35.61 per share

- FY2018: low CAD 30.54 per share, central CAD 34.60 per share, high CAD 40.01 per share

- FY2019: low CAD 27.85 per share, central CAD 31.34 per share, high CAD 35.99 per share

- FY2020: low CAD 25.31 per share, central CAD 28.44 per share, high CAD 32.60 per share

- FY2021: low CAD 29.15 per share, central CAD 34.26 per share, high CAD 39.60 per share

- FY2022: low CAD 32.23 per share, central CAD 36.41 per share, high CAD 41.97 per share

- FY2023: low CAD 40.98 per share, central CAD 46.34 per share, high CAD 53.46 per share

- FY2024: low CAD 49.26 per share, central CAD 55.70 per share, high CAD 64.27 per share

- FY2025: low CAD 54.18 per share, central CAD 61.36 per share, high CAD 70.92 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:01.112Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1618756/000161875626000017/qsr-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Seth Klarman](https://gigainvestors.com/BAUPOST): 6,753,112 QSR shares; USD 489,612,000 reported position value; 9.04% of portfolio; reduce; quarter 2026 Q2.
- [Christopher Davis](https://gigainvestors.com/DAV): 2,800,345 QSR shares; USD 203,046,000 reported position value; 0.87% of portfolio; reduce; quarter 2026 Q2.
- [Bill Ackman](https://gigainvestors.com/psc): 25,821,284 QSR shares; USD 1,872,301,000 reported position value; 9.62% of portfolio; add; quarter 2026 Q2.