Restaurant Brands International Inc. (QSR) Stock Valuation — PE Analysis
Restaurants · NYSE
Current Price
$74.51
PE Ratio (TTM)
18.2x
Intrinsic Value
$61.33
-21.5% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
QSR's portfolio of iconic brands like Burger King and Tim Hortons benefits from strong global recognition. This fosters customer loyalty and repeat business across its vast restaurant network.
↑Franchise Model Scale
The extensive franchise network allows for rapid expansion and market penetration with lower capital investment. This scale provides significant operational efficiencies and bargaining power with suppliers.
↑Real Estate Holdings
QSR owns a substantial portfolio of prime real estate occupied by its restaurants. This provides a stable, long-term revenue stream through rent and royalties, acting as a significant asset.
INVESTMENT RISKS
↓Changing Consumer Preferences
Shifting consumer tastes towards healthier options or unique dining experiences could negatively impact QSR's core offerings. Adapting menus and concepts requires significant investment and carries execution risk.
↓Labor and Supply Chain Volatility
The restaurant industry is susceptible to labor shortages and rising ingredient costs. These factors can squeeze profitability and impact operational consistency across the franchise system.
↓Franchisee Performance Variability
The success of QSR's franchise model relies heavily on the operational capabilities of individual franchisees. Underperforming franchisees can tarnish brand reputation and hinder growth.
Base case
QSR base case PE valuation
A base case PE valuation for QSR estimates a fair value of about $61.33 per share, against a current price of $74.51. The model assumes 0.4% annual earnings growth, a 20.36x target PE multiple, and a 10% discount rate.
Intrinsic Value
$61.33
Margin of safety
-21.5%
Expected annual return
-3.8%
Base case assumptions: 0.4% annual earnings growth, 20.36x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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)
18.2x
PEG Ratio
1.73
Earnings Yield
4.91%
ROE (TTM)
34.9%
Revenue/Share (TTM)
$27.87
Dividend Yield
3.45%
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 18.2x combined with a PEG ratio of 1.73 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 (18.2x) against the Restaurants median to assess relative pricing, (2) check the PEG ratio (1.73) 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 1.73, calculated by dividing the PE ratio (18.2x) 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 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.