Why Restaurant Brands International Is On Investors’ Radar Today

Restaurant Brands International (QSR) is catching attention after recent share price moves, with the stock down about 3% over the past month and roughly 3% over the past 3 months.

That pullback comes as the company reports annual revenue of US$9.4b and net income of US$902 million, giving investors fresh numbers to weigh against the current share price of US$66.14.

Short term momentum has cooled, with a 7 day share price return of about 7% decline and a 30 day share price return of roughly 3% decline, while the 1 year total shareholder return of around 6% still reflects a modest gain when dividends are included.

If this pullback has you looking beyond Restaurant Brands International, it could be a good moment to scan a curated list of 23 top founder-led companies for other ideas to research.

With annual revenue of US$9.4b, net income of US$902 million and the share price sitting at US$66.14, the key question is simple: is QSR trading at a discount, or is the market already pricing in its future growth potential?

Most Popular Narrative: 15.5% Undervalued

With Restaurant Brands International last closing at $66.14 against a widely followed fair value estimate of about $78.31, the current gap has caught attention and puts the focus firmly on what needs to go right for that narrative to play out.

Rapid international expansion, particularly through the franchise-led model in markets such as China, India, Turkey, Japan, and Brazil, is driving double-digit unit and system-wide sales growth; this directly supports recurring, capital-light revenue streams and higher long-term earnings visibility.

Sustained investment in digital capabilities, including rollout of new AI-driven operational technologies, digital ordering platforms, loyalty apps, and personalized marketing, positions RBI to enhance order volume, streamline store operations, and boost per-store sales and EBITDA margins over time.

Curious what kind of revenue growth and margin profile could justify that higher fair value, and how much weight is placed on overseas expansion and digital orders. The full narrative lays out those assumptions in detail but leaves you to judge whether they stack up.

Result: Fair Value of $78.31 (UNDERVALUED)

However, you also need to weigh risks such as higher commodity costs that may pressure margins, along with international setbacks that could slow new restaurant growth and earnings.

Build Your Own Restaurant Brands International Narrative

If you see the data differently or simply prefer to test your own assumptions, you can build a personalized Restaurant Brands International story in just a few minutes, starting with Do it your way.

A great starting point for your Restaurant Brands International research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Ready To Hunt For Your Next Idea?

If Restaurant Brands International has sharpened your thinking, do not stop here. Use the screener to widen your watchlist before the next opportunity slips past.

• Target quality by reviewing companies with resilient finances using our solid balance sheet and fundamentals stocks screener (45 results). This helps you focus on businesses with room to handle setbacks.
• Spot value by scanning 53 high quality undervalued stocks for companies that may offer a margin between current prices and their underlying fundamentals.
• Lock in income potential by checking out 12 dividend fortresses to find companies that combine yields above 5% with an emphasis on stability.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.