NYSE · Consumer Cyclical

Restaurant Brands International Inc.

QSR · Restaurants

$80.11

▲ 0.08 (0.1%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Restaurant Brands International Inc. at $80.11.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 33.8%

Operating Margin 26.4%

Net Income Margin 8.2%

Fin. Health F

Years to Pay Off Debt 20.2 yrs

Working Capital vs Long-Term Debt -$13.3B

Working Capital -$61M

Valuation F

Margin of Safety 0.0%

Price-to-Book 7.66x

Cash Flow B

Free Cash Flow $1.4B

CapEx % of Net Income 34.1%

Owner Earnings $1.3B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $36.6B

Enterprise Value $43.8B

P/E (TTM) 30.46

Dividend Yield 3.10%

Exchange NYSE

Key Margins

Gross Profit 33.8%

Operating Margin 26.4%

Net Margin 8.2%

Company Info

Sector Consumer Cyclical

Industry Restaurants

Employees 53500

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Restaurant Brands International Inc. at $80.11.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $80.11, the stock trades at a 241% premium to its Graham Number of $23.52. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Restaurant Brands International Inc.

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	33.8% ▼	36.0%	39.9%	39.9%	N/A
Operating Margin %	26.4% ▼	27.6%	29.6%	31.1%	N/A
Net Income %	8.2% ▼	12.1%	16.9%	15.5%	N/A
Diluted EPS	2.35 ▼	3.18	3.76	3.25	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$25.6B	$24.6B	$23.4B	$22.7B	N/A
Total Debt	$15.7B ↓	$16.0B	$14.5B	$14.5B	N/A
Working Capital	-$61M ▲	-$82M	$29M	-$68M	N/A
Years to Pay Debt	20.24	15.63	12.20	14.38	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$1.4B ▲	$1.3B	$1.2B	$1.4B	N/A
Owner Earnings	$1.3B	$1.5B	$1.5B	$1.3B	N/A
CapEx % of Net Income	34.1%	19.7%	10.1%	9.9%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-87,248	-1,407	-11,130	-17,010
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	2,811,000	2,671,000	2,292,000	2,148,000
Total Unusual Items	-304,000	-7,000	-53,000	-81,000
Total Unusual Items Excluding Goodwill	-304,000	-7,000	-53,000	-81,000
Net Income From Continuing Operation Net Minority Interest	902,000	1,021,000	1,190,000	1,008,000
Reconciled Depreciation	301,000	264,000	191,000	190,000
Reconciled Cost Of Revenue	6,241,000	5,382,000	4,220,000	3,907,000
EBITDA	2,507,000	2,664,000	2,239,000	2,067,000
EBIT	2,206,000	2,400,000	2,048,000	1,877,000
Net Interest Income	-516,000	-577,000	-582,000	-533,000
Interest Expense	522,000	591,000	595,000	512,000
Interest Income	31,000	39,000	40,000	7,000
Normalized Income	1,118,752	1,026,593	1,231,870	1,071,990
Net Income From Continuing And Discontinued Operation	776,000	1,021,000	1,190,000	1,008,000
Total Expenses	6,941,000	6,082,000	4,942,000	4,482,000
Total Operating Income As Reported	2,202,000	2,419,000	2,051,000	1,898,000
Diluted Average Shares	457,000	454,000	456,000	455,000
Basic Average Shares	329,000	319,000	312,000	307,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,074,000	1,442,000	1,715,000	1,479,000
Average Dilution Earnings	298,000	421,000	525,000	471,000
Net Income Common Stockholders	776,000	1,021,000	1,190,000	1,008,000
Net Income	776,000	1,021,000	1,190,000	1,008,000
Minority Interests	-299,000	-424,000	-528,000	-474,000
Net Income Including Noncontrolling Interests	1,075,000	1,445,000	1,718,000	1,482,000
Net Income Discontinuous Operations	-126,000	0	0
Net Income Continuous Operations	1,201,000	1,445,000	1,718,000	1,482,000
Tax Provision	483,000	364,000	-265,000	-117,000
Pretax Income	1,684,000	1,809,000	1,453,000	1,365,000
Other Income Expense	-293,000	62,000	-45,000	-125,000
Special Income Charges	-95,000	-78,000	-33,000	-85,000
Gain On Sale Of Ppe	-35,000	-3,000	-16,000	-4,000
Other Special Charges	9,000	33,000	17,000	11,000
Restructuring And Mergern Acquisition	51,000	42,000	57,000	70,000
Earnings From Equity Interest	11,000	69,000	8,000	-44,000
Gain On Sale Of Security	-209,000	71,000	-20,000	4,000
Net Non Operating Interest Income Expense	-516,000	-577,000	-582,000	-533,000
Total Other Finance Cost	25,000	25,000	27,000	28,000
Interest Expense Non Operating	522,000	591,000	595,000	512,000
Interest Income Non Operating	31,000	39,000	40,000	7,000
Operating Income	2,493,000	2,324,000	2,080,000	2,023,000
Operating Expense	700,000	700,000	722,000	575,000
Other Operating Expenses	10,000	9,000	18,000	14,000
Depreciation Amortization Depletion Income Statement				25,000	20,000
Depreciation And Amortization In Income Statement				25,000	20,000
Selling General And Administration	690,000	691,000	704,000	561,000
General And Administrative Expense	690,000	691,000	704,000	561,000
Other Gand A	690,000	691,000	704,000	561,000
Salaries And Wages				136,000	102,000
Gross Profit	3,193,000	3,024,000	2,802,000	2,598,000
Cost Of Revenue	6,241,000	5,382,000	4,220,000	3,907,000
Total Revenue	9,434,000	8,406,000	7,022,000	6,505,000
Operating Revenue	9,434,000	8,406,000	7,022,000	6,505,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	346,323	324,427	312,455	307,142
Share Issued	346,323	324,427	312,455	307,142
Net Debt	12,155,000	12,343,000	11,816,000	11,788,000
Total Debt	15,704,000	15,956,000	14,515,000	14,491,000
Tangible Book Value	-13,862,000	-13,798,000	-14,016,000	-14,180,000
Invested Capital	16,952,000	16,787,000	15,821,000	15,465,000
Working Capital	-61,000	-82,000	29,000	-68,000
Net Tangible Assets	-13,862,000	-13,798,000	-14,016,000	-14,180,000
Capital Lease Obligations	2,386,000	2,279,000	1,560,000	1,525,000
Common Stock Equity	3,634,000	3,110,000	2,866,000	2,499,000
Total Capitalization	16,884,000	16,565,000	15,720,000	15,338,000
Total Equity Gross Minority Interest	5,159,000	4,843,000	4,730,000	4,268,000
Minority Interest	1,525,000	1,733,000	1,864,000	1,769,000
Stockholders Equity	3,634,000	3,110,000	2,866,000	2,499,000
Gains Losses Not Affecting Retained Earnings	-1,020,000	-1,107,000	-706,000	-679,000
Other Equity Adjustments	-1,020,000	-1,107,000	-706,000	-679,000
Retained Earnings	1,795,000	1,860,000	1,599,000	1,121,000
Capital Stock	2,859,000	2,357,000	1,973,000	2,057,000
Common Stock	2,859,000	2,357,000	1,973,000	2,057,000
Total Liabilities Net Minority Interest	20,456,000	19,789,000	18,661,000	18,478,000
Total Non Current Liabilities Net Minority Interest	17,565,000	17,425,000	16,517,000	16,362,000
Other Non Current Liabilities	57,000	29,000	24,000	25,000
Derivative Product Liabilities	290,000	1,000	227,000	34,000
Employee Benefits	23,000	23,000	34,000	40,000
Non Current Pension And Other Postretirement Benefit Plans	23,000	23,000	34,000	40,000
Tradeand Other Payables Non Current	77,000	52,000	57,000	139,000
Non Current Deferred Liabilities	1,682,000	1,779,000	1,908,000	1,897,000
Non Current Deferred Revenue	562,000	571,000	612,000	584,000
Non Current Deferred Taxes Liabilities	1,120,000	1,208,000	1,296,000	1,313,000
Long Term Debt And Capital Lease Obligation	15,436,000	15,541,000	14,267,000	14,227,000
Long Term Capital Lease Obligation	2,186,000	2,086,000	1,413,000	1,388,000
Long Term Debt	13,250,000	13,455,000	12,854,000	12,839,000
Current Liabilities	2,891,000	2,364,000	2,144,000	2,116,000
Other Current Liabilities	437,000
Current Deferred Liabilities	326,000	307,000	325,000	273,000
Current Deferred Revenue	326,000	307,000	325,000	273,000
Current Debt And Capital Lease Obligation	268,000	415,000	248,000	264,000
Current Capital Lease Obligation	200,000	193,000	147,000	137,000
Current Debt	68,000	222,000	101,000	127,000
Other Current Borrowings	68,000	222,000	101,000	127,000
Pensionand Other Post Retirement Benefit Plans Current	155,000	143,000	147,000	124,000
Current Provisions	25,000	16,000	18,000	29,000
Payables And Accrued Expenses	1,680,000	1,483,000	1,406,000	1,426,000
Current Accrued Expenses	343,000	228,000	242,000	235,000
Interest Payable	69,000	69,000	67,000	89,000
Payables	1,337,000	1,255,000	1,164,000	1,191,000
Dividends Payable	283,000	262,000	245,000	243,000
Total Tax Payable	188,000	228,000	129,000	190,000
Accounts Payable	866,000	765,000	790,000	758,000
Total Assets	25,615,000	24,632,000	23,391,000	22,746,000
Total Non Current Assets	22,785,000	22,350,000	21,218,000	20,698,000
Other Non Current Assets	1,025,000	1,354,000	1,262,000	987,000
Investment Properties				82,000	80,000
Goodwill And Other Intangible Assets	17,496,000	16,908,000	16,882,000	16,679,000
Other Intangible Assets	11,190,000	10,922,000	11,107,000	10,991,000
Goodwill	6,306,000	5,986,000	5,775,000	5,688,000
Net PPE	4,264,000	4,088,000	3,074,000	3,032,000
Accumulated Depreciation	-1,245,000	-1,087,000	-1,187,000	-1,061,000
Gross PPE	5,509,000	5,175,000	4,261,000	4,093,000
Construction In Progress	124,000	116,000	62,000	52,000
Other Properties	2,634,000	2,493,000	1,672,000	1,591,000
Machinery Furniture Equipment	320,000	280,000	347,000	300,000
Buildings And Improvements	1,472,000	1,334,000	1,193,000	1,165,000
Land And Improvements	959,000	952,000	987,000	985,000
Current Assets	2,830,000	2,282,000	2,173,000	2,048,000
Other Current Assets	179,000	108,000	119,000	123,000
Assets Held For Sale Current	489,000	0
Prepaid Assets					86,000
Inventory	205,000	142,000	166,000	133,000
Receivables	794,000	698,000	749,000	614,000
Accounts Receivable	794,000	698,000	749,000	614,000
Allowance For Doubtful Accounts Receivable	-54,000	-57,000	-37,000	-36,000
Gross Accounts Receivable	848,000	755,000	786,000	650,000
Cash Cash Equivalents And Short Term Investments	1,163,000	1,334,000	1,139,000	1,178,000
Cash And Cash Equivalents	1,163,000	1,334,000	1,139,000	1,178,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	1,449,000	1,302,000	1,203,000	1,390,000
Repurchase Of Capital Stock	0	0	-500,000	-326,000
Repayment Of Debt	-427,000	-2,190,000	-92,000	-94,000
Issuance Of Debt	0	2,450,000	55,000	2,000
Issuance Of Capital Stock		0	0	30,000	0
Capital Expenditure	-265,000	-201,000	-120,000	-100,000
Interest Paid Supplemental Data	714,000	785,000	761,000	487,000
Income Tax Paid Supplemental Data	450,000	293,000	290,000	275,000
End Cash Position	1,163,000	1,334,000	1,139,000	1,178,000
Beginning Cash Position	1,334,000	1,139,000	1,178,000	1,087,000
Effect Of Exchange Rate Changes	16,000	-23,000	1,000	-28,000
Changes In Cash	-187,000	218,000	-40,000	119,000
Cash Flow From Discontinued Operation	-147,000	0	0
Financing Cash Flow	-1,436,000	-625,000	-1,374,000	-1,307,000
Cash Flow From Continuing Financing Activities	-1,436,000	-625,000	-1,374,000	-1,307,000
Net Other Financing Charges	66,000	66,000	93,000	31,000
Proceeds From Stock Option Exercised	33,000	78,000	60,000	21,000
Cash Dividends Paid	-1,108,000	-1,029,000	-990,000	-971,000
Common Stock Dividend Paid	-1,108,000	-1,029,000	-990,000	-971,000
Net Common Stock Issuance	0	0	-500,000	-296,000
Common Stock Payments	0	0	-500,000	-326,000
Common Stock Issuance		0	0	30,000	0
Net Issuance Payments Of Debt	-427,000	260,000	-37,000	-92,000
Net Short Term Debt Issuance				-92,000	446,000
Short Term Debt Payments				-94,000	-889,000
Short Term Debt Issuance				2,000	1,335,000
Net Long Term Debt Issuance	-427,000	260,000	-37,000	-92,000
Long Term Debt Payments	-427,000	-2,190,000	-92,000	-94,000
Long Term Debt Issuance	0	2,450,000	55,000	2,000
Investing Cash Flow	-318,000	-660,000	11,000	-64,000
Cash Flow From Continuing Investing Activities	-318,000	-660,000	11,000	-64,000
Net Other Investing Changes	23,000	7,000	36,000	-23,000
Net Investment Purchase And Sale	76,000	74,000	112,000	71,000
Sale Of Investment	76,000	74,000	112,000	71,000
Net Business Purchase And Sale	-152,000	-540,000	-17,000	-12,000
Purchase Of Business	-152,000	-540,000	-17,000	-12,000
Net PPE Purchase And Sale	-265,000	-201,000	-120,000	-100,000
Purchase Of PPE	-265,000	-201,000	-120,000	-100,000
Operating Cash Flow	1,714,000	1,503,000	1,323,000	1,490,000
Cash Flow From Continuing Operating Activities	1,714,000	1,503,000	1,323,000	1,490,000
Change In Working Capital	-68,000	-71,000	-237,000	-310,000
Change In Other Working Capital	6,000	-41,000	-78,000	-345,000
Change In Payables And Accrued Expense	82,000	-67,000	31,000	206,000
Change In Accrued Expense	-7,000	-37,000	9,000	37,000
Change In Payable	89,000	-30,000	22,000	169,000
Change In Inventory	-67,000	30,000	-43,000	-61,000
Change In Receivables	-89,000	7,000	-147,000	-110,000
Other Non Cash Items	30,000	6,000	21,000	21,000
Stock Based Compensation	151,000	172,000	194,000	136,000
Deferred Tax	97,000	-5,000	-430,000	-60,000
Deferred Income Tax	97,000	-5,000	-430,000	-60,000
Depreciation Amortization Depletion	301,000	264,000	191,000	190,000
Depreciation And Amortization	301,000	264,000	191,000	190,000
Operating Gains Losses	2,000	-308,000	-134,000	31,000
Earnings Losses From Equity Investments	-11,000	-69,000	-8,000	44,000
Gain Loss On Investment Securities	-198,000	-191,000	-151,000	-9,000
Net Foreign Currency Exchange Gain Loss	209,000	-71,000	20,000	-4,000
Net Income From Continuing Operations	1,201,000	1,445,000	1,718,000	1,482,000

These metrics estimate what Restaurant Brands International Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$23.52

Margin of Safety

Market Cap ÷ Company Value

3.27

P/B Ratio

7.66

Warren's Owner Earnings

$1.3B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$9.4B

vs > $1.5B revenue

❌ Strong Financial Condition

0.98x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

3.10%

vs Uninterrupted dividends

❌ Earnings Growth

-27.7% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

30.5x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

7.66x P/B (P/E×P/B: 233.2)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-50.75

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$79.76

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	34.1%	19.7%	10.1%	9.9%	N/A
Repurchase of Capital Stock	$0M	$0M	-$500M	-$326M	N/A
Free Cash Flow	$1.4B ▲	$1.3B ▲	$1.2B ▼	$1.4B •	N/A •
Warren's Owner Earnings	$1.3B	$1.5B	$1.5B	$1.3B	N/A

Peers & Industry Comparison

Restaurants — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
QSR	$80.11	$36.6B	30.46	33.8%	8.2%	$9.4B
MCD McDonald's Corporation	$284.44	$202.2B	23.8	57.4%	31.9%	$26.9B
SBUX Starbucks Corporation	$104.83	$119.5B	80.0	21.9%	3.9%	$38.5B
YUM Yum! Brands, Inc.	$154.29	$42.7B	24.8	45.7%	20.5%	$8.5B
DPZ Domino's Pizza Inc	$330.37	$11.0B	19.0	28.7%	11.9%	$5.0B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

1.34%

Low — management has little skin in the game

Return on Equity (ROE)

21.4%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

3.0%

Fair — average asset utilization

Debt Trend YoY

-1.6% YoY

Debt is declining — management is deleveraging

Leadership Team

Patrick Doyle

Executive Chairman

Age 62

Joshua Kobza

Chief Executive Officer

Age 38

Pay: $2,841,868

0.366% of net income

Sami Siddiqui

Chief Financial Officer

Age 40

Pay: $1,601,289

0.206% of net income

Axel Schwan

President of Tim Hortons - Canada & U.S.

Age 51

Pay: $1,792,777

0.231% of net income

Thomas Benjamin Curtis

President of Burger King U.S. & Canada

Age 61

Pay: $1,117,739

0.144% of net income

Top Institutional Holders

Institution	% Owned	Shares
Capital World Investors	12.53%	43,525,570
Pershing Square Capital Management, L.P.	6.58%	22,866,773
Royal Bank of Canada	5.34%	18,544,727
Edgepoint Investment Group Inc.	4.79%	16,645,003
Vanguard Group Inc	4.60%	15,983,585
Bank of Montreal /CAN/	4.38%	15,219,947
Morgan Stanley	2.43%	8,429,121
BAUPOST GROUP LLC/MA	2.33%	8,080,112

⚠️ Very high debt-to-equity — leverage risk

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.55

Low volatility — more stable than the market

Short Interest

5.1% of float

Moderate short interest

Debt-to-Equity

3.04x

High leverage — significant financial risk

Current Ratio