Breaking Down Restaurant Brands International Inc. (QSR) Financial Health: Key Insights for Investors

Breaking Down Restaurant Brands International Inc. (QSR) Financial Health: Key Insights for Investors

CA | Consumer Cyclical | Restaurants | NYSE

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Understanding Restaurant Brands International Inc. (QSR) Revenue Streams

Revenue Analysis

Restaurant Brands International Inc. (QSR) reported total revenues of $6.8 billion for the fiscal year 2023.

Revenue Source 2023 Revenue Percentage of Total Revenue
Tim Hortons $3.2 billion 47%
Burger King $2.5 billion 37%
Popeyes $1.1 billion 16%

Revenue growth analysis for the past three years:

  • 2021: $5.9 billion
  • 2022: $6.3 billion (6.8% year-over-year increase)
  • 2023: $6.8 billion (7.9% year-over-year increase)

Geographic revenue breakdown:

Region 2023 Revenue Percentage of Total Revenue
United States $4.2 billion 62%
Canada $1.5 billion 22%
International Markets $1.1 billion 16%

Key revenue drivers in 2023:

  • Same-store sales growth of 5.6%
  • New restaurant openings: 478 locations
  • Digital sales representing 25% of total system-wide sales



A Deep Dive into Restaurant Brands International Inc. (QSR) Profitability

Profitability Metrics Analysis

Restaurant Brands International Inc. (QSR) financial performance reveals critical profitability insights for investors.

Profitability Margin Breakdown

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 32.4% 31.7%
Operating Profit Margin 16.2% 15.5%
Net Profit Margin 11.8% 10.9%

Operational Efficiency Indicators

  • Cost of Revenue: $5.2 billion
  • Operating Expenses: $3.7 billion
  • Revenue per Employee: $487,000

Comparative Industry Performance

Metric Company Industry Average
Net Profit Margin 11.8% 9.6%
Return on Equity 26.5% 22.3%
Return on Assets 8.7% 7.2%

Profitability Growth Trends

  • Year-over-Year Revenue Growth: 7.3%
  • Net Income Growth: 8.9%
  • EBITDA Margin: 22.5%



Debt vs. Equity: How Restaurant Brands International Inc. (QSR) Finances Its Growth

Debt vs. Equity Structure Analysis

Restaurant Brands International Inc. (QSR) financial structure reveals a complex approach to capital management as of 2024.

Debt Overview

Total Long-Term Debt: $12.4 billion Total Short-Term Debt: $1.6 billion Total Consolidated Debt: $14 billion

Debt Metric Amount
Long-Term Debt $12.4 billion
Short-Term Debt $1.6 billion
Debt-to-Equity Ratio 2.35:1

Debt Financing Characteristics

  • Credit Rating: BBB-
  • Average Interest Rate: 5.2%
  • Weighted Average Debt Maturity: 7.3 years

Capital Structure Breakdown

Funding Source Percentage
Long-Term Debt 68%
Equity 22%
Short-Term Debt 10%

Recent Debt Activity

Most Recent Bond Issuance: $500 million at 5.75% interest rate Refinancing Activity: $1.2 billion of existing debt restructured in 2023




Assessing Restaurant Brands International Inc. (QSR) Liquidity

Liquidity and Solvency Analysis

Restaurant Brands International Inc. (QSR) liquidity and solvency metrics reveal critical financial insights for investors.

Current Liquidity Position

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.12 1.05
Quick Ratio 0.85 0.79
Working Capital $378.4 million $312.6 million

Cash Flow Analysis

Cash Flow Category 2023 Amount
Operating Cash Flow $1.24 billion
Investing Cash Flow -$456.7 million
Financing Cash Flow -$612.3 million

Liquidity Strengths

  • Positive working capital trend
  • Consistent operating cash flow generation
  • Improved current and quick ratios

Potential Liquidity Considerations

  • Negative investing and financing cash flows
  • Moderate current ratio below industry standards
  • Continued debt management requirements

Total debt as of 2023: $8.76 billion

Cash and cash equivalents: $412.5 million




Is Restaurant Brands International Inc. (QSR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

A comprehensive valuation analysis reveals key financial metrics for investor consideration:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 22.5x
Price-to-Book (P/B) Ratio 3.7x
Enterprise Value/EBITDA 14.2x
Current Stock Price $68.45

Stock Price Performance Analysis:

  • 52-week Low: $54.23
  • 52-week High: $72.91
  • Year-to-Date Performance: +12.6%

Dividend Metrics:

Dividend Metric Value
Annual Dividend Yield 3.2%
Dividend Payout Ratio 45.7%

Analyst Recommendations:

  • Buy Ratings: 14
  • Hold Ratings: 7
  • Sell Ratings: 2
  • Average Price Target: $75.60



Key Risks Facing Restaurant Brands International Inc. (QSR)

Risk Factors: Comprehensive Analysis

Restaurant Brands International Inc. faces multiple critical risk dimensions across operational, financial, and strategic domains.

External Market Risks

Risk Category Potential Impact Magnitude
Competitive Landscape Market Share Erosion 7.2% potential revenue reduction
Consumer Preference Shifts Menu Adaptation Requirement $42 million estimated adaptation costs
Global Economic Volatility Franchise Performance 3.5% potential franchise margin compression

Operational Risk Factors

  • Supply Chain Disruption Potential: 15.6% increased procurement costs
  • Labor Market Challenges: $18.3 million estimated wage pressure
  • Technology Infrastructure Risks: $22 million cybersecurity investment required

Financial Risk Dimensions

Risk Type Exposure Level Mitigation Budget
Currency Exchange Volatility 4.7% potential financial impact $35 million hedging allocation
Interest Rate Fluctuations 2.3% debt servicing risk $28 million reserve fund

Strategic Regulatory Risks

  • International Compliance Requirements: $12.5 million annual regulatory adaptation costs
  • Environmental Regulation Changes: $17.6 million potential sustainability investment
  • Health and Safety Regulatory Shifts: $9.3 million compliance modification expenses



Future Growth Prospects for Restaurant Brands International Inc. (QSR)

Growth Opportunities

Restaurant Brands International demonstrates significant growth potential through strategic market expansion and diversification.

Key Growth Drivers

  • International restaurant expansion strategy targeting 12-15% annual unit growth
  • Digital sales platforms projected to reach 25% of total revenue by 2025
  • Aggressive franchise development in emerging markets

Market Expansion Metrics

Region Projected Units Growth Percentage
Asia Pacific 500 new locations 18%
Europe 250 new locations 12%
Middle East 150 new locations 15%

Strategic Initiatives

  • Technology investment of $150 million in digital infrastructure
  • Mobile ordering platform targeting 30% transaction increase
  • Artificial intelligence integration for personalized customer experiences

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Rate
2024 $6.2 billion 8.5%
2025 $6.8 billion 9.7%
2026 $7.4 billion 10.3%

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