Restaurant Brands International Inc. (QSR) Stock Valuation — PE Analysis
Restaurants · NYSE
Current Price
$69.43
PE Ratio (TTM)
16.9x
Intrinsic Value
$58.05
-19.6% margin of safety
COMPETITIVE MOAT
↑Global Brand Recognition
Burger King, Tim Hortons, Popeyes, and Firehouse Subs are globally recognized brands. This widespread awareness drives consistent customer traffic and demand across diverse markets.
↑Franchise Model Scale
QSR's extensive franchise network allows for rapid expansion and market penetration with lower capital investment. This model leverages franchisee capital and local market knowledge.
↑Supply Chain Efficiencies
The company benefits from economies of scale in its supply chain operations. This leads to cost advantages in sourcing ingredients and distribution across its vast restaurant portfolio.
INVESTMENT RISKS
↓Franchisee Performance Variability
The success of QSR's franchise model is dependent on the financial health and operational execution of its franchisees. Underperforming franchisees can negatively impact brand image and profitability.
↓Rising Food and Labor Costs
Increasing costs for ingredients and labor can squeeze profit margins, especially in a price-sensitive industry. QSR must balance cost management with maintaining perceived value.
↓Brand Revitalization Challenges
Burger King's efforts to win back customers with new Whoppers and higher quality face execution risks. Sustaining customer interest and justifying higher prices is a continuous challenge.
Base case
QSR base case PE valuation
A base case PE valuation for QSR estimates a fair value of about $58.05 per share, against a current price of $69.43. The model assumes 0.4% annual earnings growth, a 18.97x target PE multiple, and a 10% discount rate.
Intrinsic Value
$58.05
Margin of safety
-19.6%
Expected annual return
-3.5%
Base case assumptions: 0.4% annual earnings growth, 18.97x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the QSR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Restaurant Brands International Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
16.9x
PEG Ratio
1.61
Earnings Yield
5.27%
ROE (TTM)
34.9%
Revenue/Share (TTM)
$27.87
Dividend Yield
3.70%
Debt/Equity
4.07x
Frequently Asked Questions
What is the PE ratio of QSR?
The trailing twelve-month PE ratio of QSR reflects how much investors pay per dollar of Restaurant Brands International Inc.'s earnings. This metric is most useful when compared to Restaurants peers and the company's own historical range.
Is QSR overvalued based on PE ratio?
QSR's PE of 16.9x combined with a PEG ratio of 1.61 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Restaurants, a DCF analysis may be more appropriate.
How do I value QSR stock using PE ratio?
To value Restaurant Brands International Inc. using PE: (1) Compare the current PE (16.9x) against the Restaurants median to assess relative pricing, (2) check the PEG ratio (1.61) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of QSR?
QSR's PEG ratio is 1.61, calculated by dividing the PE ratio (16.9x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for QSR stock valuation?
PE ratio gives a quick relative read — how QSR is priced versus Restaurants peers. DCF provides an absolute value based on projected free cash flows. For QSR, with a strong ROE of 34.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See QSR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value QSR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.