Restaurant Brands International Inc. (QSR) Intrinsic Value & DCF Valuation
Restaurants · NYSE
Current Price
$80.86
Intrinsic Value
$94.93
+14.8% margin of safety
What Is Restaurant Brands International Inc.'s Intrinsic Value?
As of 2026-08-21, the base-case DCF model estimates the intrinsic value of Restaurant Brands International Inc. (QSR) at $94.93 per share, compared with a market price of $80.86, a margin of safety of +14.8%. The base case assumes 7.9% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $75.96 to $116.76. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Restaurant Brands International Inc. (QSR) Undervalued?
At $80.86, QSR trades about 14.8% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Burger King Turnaround Momentum
Burger King's revitalized strategy is driving market share gains and outperforming competitors like McDonald's. This momentum suggests a strengthening competitive position.
↑Brand Portfolio Diversification
QSR's ownership of multiple strong brands (Burger King, Tim Hortons, Popeyes, Firehouse Subs) diversifies revenue streams and reduces reliance on any single brand's performance.
↑Franchise Model Scale
The extensive global franchise network provides significant operating leverage and capital efficiency. This scale allows for efficient expansion and brand penetration.
INVESTMENT RISKS
↓Execution Risk of Turnaround
While Burger King's turnaround is showing promise, sustained execution of its revamped playbook is crucial. Any missteps could stall or reverse recent gains.
↓Labor and Supply Chain Volatility
The restaurant industry is susceptible to labor shortages and rising ingredient costs. These factors can impact profitability and operational consistency.
↓Economic Sensitivity
Restaurant spending is discretionary and can be significantly impacted by economic downturns. Recessions may lead to reduced consumer spending on dining out.
Base case
QSR base case valuation
Intrinsic Value
$94.93
Margin of safety
+14.8%
Expected annual return
+3.3%
Base case assumptions: 7.9% annual growth, 10.0% discount rate, 17.83x exit multiple, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the QSR valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Restaurant Brands International Inc. respond.
Open DCF Calculator for QSRCompany Overview
Restaurant Brands International Inc. (RBI), a prominent quick-service restaurant enterprise, maintains its headquarters in Toronto, Canada. Established in 1954, the company operates globally, managing and franchising four distinct and widely recognized brands: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). Through its Tim Hortons segment, RBI offers a diverse menu at its coffee, tea, and donut establishments. This includes a selection of hot and cold specialty beverages like espresso-based drinks, a variety of freshly baked goods such as donuts, Timbits, bagels, muffins, cookies, and pastries, alongside savory options like grilled paninis, classic sandwiches, wraps, and soups. Burger King, a renowned fast-food hamburger chain within RBI's portfolio, provides patrons with its signature flame-grilled hamburgers, an array of chicken and other specialized sandwiches, French fries, and various soft drinks. The company's Popeyes Louisiana Kitchen outlets are celebrated for their distinctive Louisiana-style fried chicken, chicken tenders, and fried shrimp and other seafood options, complemented by regional specialties like red beans and rice. Furthermore, RBI's Firehouse Subs restaurants serve a range of submarine sandwiches, beverages, and local culinary delights. Demonstrating significant international reach, RBI had approximately 29,000 restaurants spread across 100 countries under its four brands as of February 15, 2022.
Financial Metrics — QSR Stock Valuation Data
Revenue/Share (TTM)
$27.87
FCF/Share (TTM)
$4.52
ROIC (TTM)
9.9%
ROE (TTM)
34.9%
P/FCF
17.8x
EV/EBITDA
15.2x
FCF Yield
5.61%
Debt/Equity
4.07x
Based on trailing twelve-month data, QSR shows a free cash flow per share of $4.52 and a ROIC of 9.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 17.8x and FCF yield of 5.61% are important context metrics when evaluating QSR's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of QSR?
Restaurant Brands International Inc. currently generates $4.52 in free cash flow per share. At the current price of $80.86, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is QSR undervalued?
QSR trades at a P/FCF ratio of 17.8x with a free cash flow yield of 5.61%. This P/FCF is in a moderate range. However, whether QSR is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value QSR stock using DCF?
To perform a DCF valuation on Restaurant Brands International Inc.: (1) Start with the trailing free cash flow per share ($4.52) as the base, (2) project future FCF growth over 5-10 years based on Restaurants industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting QSR's risk profile — with a debt-to-equity of 4.07x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to QSR?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Restaurant Brands International Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Restaurants trends, then discounting those amounts to today's dollars. QSR's ROIC of 9.9% shows moderate capital returns.
How does WACC affect QSR stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For QSR, with a debt-to-equity ratio of 4.07x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 15.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See QSR PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Cyclical valuationsDCF and P/E value QSR with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.