Last Updated: 08 Nov 2024
Executive Summary
Restaurant Brands International Inc. (QSR) is a global quick-service restaurant company with a portfolio of iconic brands including Tim Hortons, Burger King, and Popeyes. The company has a strong financial position with a market capitalization of over $30 billion and a dividend yield of 3.38%. QSR's stock price has been under pressure recently due to concerns about inflation and economic headwinds, but the company's long-term growth prospects remain intact.
Company Overview
Restaurant Brands International Inc. is the third-largest quick-service restaurant company in the world, with over 27,000 restaurants in more than 100 countries. The company's brands are well-known and have a strong following among consumers. Tim Hortons is the leading coffee and baked goods chain in Canada, while Burger King is one of the most popular burger chains in the world. Popeyes is a growing fried chicken chain with a strong presence in the United States and Canada.
Fundamental Analysis
QSR's financial performance has been solid in recent years. The company's revenue has grown by an average of 5% per year over the past five years, and its earnings per share have grown by an average of 10% per year. QSR's profit margin is 16%, which is above the industry average. The company's balance sheet is also strong, with low levels of debt and a high level of cash flow.
QSR's valuation metrics are attractive. The company's trailing price-to-earnings ratio is 17.2, which is below the industry average. The company's forward price-to-earnings ratio is 13.19, which is even more attractive.
Technical Analysis
QSR's stock price has been in a downtrend since the beginning of the year. The stock price is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
QSR's stock price is likely to remain under pressure in the short term due to concerns about inflation and economic headwinds. However, the company's long-term growth prospects remain intact. QSR's brands are well-known and have a strong following among consumers. The company's financial position is also strong, with low levels of debt and a high level of cash flow.
Long Term Outlook
QSR's long-term growth prospects are bright. The company's brands are well-positioned to benefit from the growing demand for quick-service restaurants. QSR is also expanding into new markets, which will provide additional growth opportunities.
Analyst Recommendations
The majority of analysts have a buy rating on QSR's stock. The average analyst target price is $112.19, which represents a potential upside of over 60% from the current price.
