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A Look At Restaurant Brands International (QSR) Valuation After Earnings Beat And 6.9% Revenue Growth

Simply Wall St · 4d ago

Restaurant Brands International (QSR) recently reported quarterly revenue growth of 6.9% year on year, topping analyst expectations by 2.4%. This result has put fresh attention on the fast food owner’s stock.

See our latest analysis for Restaurant Brands International.

The latest results come after a softer patch for the shares, with a 30 day share price return of a 7.97% decline and a year to date share price return of a 0.19% decline. However, the 1 year total shareholder return of 11.24% and 5 year total shareholder return of 28.45% point to steadier progress over time, suggesting recent momentum has faded even as the longer term record remains positive.

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With revenue up 6.9% and the shares trading below some valuation estimates, the key question now is whether QSR still offers value or if the current price already reflects its future growth potential.

Most Popular Narrative: 13.4% Undervalued

The most followed narrative sees Restaurant Brands International’s fair value above the last close of US$67.68, which sets a clear reference point for how its future is being modelled.

Rapid international expansion, particularly through the franchise-led model in markets such as China, India, Turkey, Japan, and Brazil, is driving double-digit unit and system-wide sales growth; this directly supports recurring, capital-light revenue streams and higher long-term earnings visibility.

Population growth, urbanization, and rising middle-class consumer bases in emerging markets are expanding RBI's addressable customer base and supporting the return to net restaurant growth (notably at Tim Hortons in Canada and new Firehouse and Popeyes units in fast-growing geographies), structurally underpinning future revenue and profit growth.

Read the complete narrative.

Curious what earnings, margins, and valuation multiple are baked into that upside case, and how they tie into a higher fair value? The full narrative connects measured revenue growth, expanding profitability, and a future P/E assumption into one cohesive pricing story.

Result: Fair Value of $78.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained cost inflation and any slowdown in international expansion or franchisee health could quickly challenge the earnings and valuation assumptions behind that upside case.

Find out about the key risks to this Restaurant Brands International narrative.

Build Your Own Restaurant Brands International Narrative

If you look at the numbers and reach a different conclusion, or simply want to test your own assumptions, you can build a custom view in minutes with Do it your way

A great starting point for your Restaurant Brands International research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.