Is Restaurant Brands Stock a Good Investment?
Restaurant Brands Investment Advice | QSR |
- Examine Restaurant Brands' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Restaurant Brands' leadership team and their track record. Good management can help Restaurant Brands navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Restaurant Brands' business and its evolving consumer preferences.
- Compare Restaurant Brands' performance and market position to its competitors. Analyze how Restaurant Brands is positioned in terms of product offerings, innovation, and market share.
- Check if Restaurant Brands pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Restaurant Brands' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Restaurant Brands International stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Restaurant Brands International is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Restaurant Brands Stock
Researching Restaurant Brands' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 88.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.79. Restaurant Brands last dividend was issued on the 20th of December 2024.
To determine if Restaurant Brands is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Restaurant Brands' research are outlined below:
| Restaurant Brands International has 14.52 B in debt with debt to equity (D/E) ratio of 3.71, meaning that the company heavily relies on borrowing funds for operations. Restaurant Brands has a current ratio of 0.87, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Restaurant to invest in growth at high rates of return. | |
| Over 88.0% of Restaurant Brands shares are owned by institutional investors | |
| On 4th of October 2024 Restaurant Brands paid $ 0.58 per share dividend to its current shareholders | |
| Latest headline from globenewswire.com: Creative Realities Clarity Purpose-built CMS Tech Stack Powers Digital Menu Boards Transformation for Fast Growing QSR Brands like 7 Brew and Steele Brands |
Restaurant Brands Quarterly Good Will |
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Restaurant Brands uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Restaurant Brands International. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Restaurant Brands' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 13th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Restaurant Brands' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Restaurant Brands' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-08-06 | 2020-06-30 | 0.29 | 0.33 | 0.04 | 13 | ||
2021-04-30 | 2021-03-31 | 0.5 | 0.55 | 0.05 | 10 | ||
2015-10-27 | 2015-09-30 | 0.29 | 0.34 | 0.05 | 17 | ||
2017-08-02 | 2017-06-30 | 0.45 | 0.51 | 0.06 | 13 | ||
2016-08-04 | 2016-06-30 | 0.35 | 0.41 | 0.06 | 17 | ||
2016-02-16 | 2015-12-31 | 0.29 | 0.35 | 0.06 | 20 | ||
2015-07-27 | 2015-06-30 | 0.24 | 0.3 | 0.06 | 25 | ||
2023-08-08 | 2023-06-30 | 0.77 | 0.85 | 0.08 | 10 |
Know Restaurant Brands' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Restaurant Brands is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Restaurant Brands International backward and forwards among themselves. Restaurant Brands' institutional investor refers to the entity that pools money to purchase Restaurant Brands' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Fidelity International Ltd | 2024-06-30 | 6.3 M | Beutel, Goodman & Company Ltd. | 2024-09-30 | 6.1 M | Mackenzie Investments | 2024-09-30 | 4.6 M | Manufacturers Life Insurance Co | 2024-09-30 | 3.9 M | Td Asset Management Inc | 2024-09-30 | 3.6 M | Fiera Capital Corporation | 2024-06-30 | 3.5 M | Goldman Sachs Group Inc | 2024-06-30 | 3.5 M | Norges Bank | 2024-06-30 | 3.3 M | Nuveen Asset Management, Llc | 2024-06-30 | 3.1 M | Capital World Investors | 2024-09-30 | 42.6 M | Pershing Square Capital Management, L.p. | 2024-09-30 | 23 M |
Restaurant Brands' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 31.17 B.Market Cap |
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Restaurant Brands' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.18 | 0.10 | |
| Return On Capital Employed | 0.10 | 0.07 | |
| Return On Assets | 0.05 | 0.03 | |
| Return On Equity | 0.42 | 0.23 |
Determining Restaurant Brands' profitability involves analyzing its financial statements and using various financial metrics to determine if Restaurant Brands is a good buy. For example, gross profit margin measures Restaurant Brands' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Restaurant Brands' profitability and make more informed investment decisions.
Restaurant Brands' Earnings Breakdown by Geography
Evaluate Restaurant Brands' management efficiency
Restaurant Brands has Return on Asset of 0.0586 % which means that on every $100 spent on assets, it made $0.0586 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3731 %, implying that it generated $0.3731 on every 100 dollars invested. Restaurant Brands' management efficiency ratios could be used to measure how well Restaurant Brands manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/24/2024, Return On Tangible Assets is likely to drop to 0.10. In addition to that, Return On Capital Employed is likely to drop to 0.07. At this time, Restaurant Brands' Other Assets are relatively stable compared to the past year. As of 11/24/2024, Non Currrent Assets Other is likely to grow to about 1.3 B, while Total Assets are likely to drop slightly above 13.8 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 15.16 | 12.41 | |
| Tangible Book Value Per Share | (38.95) | (40.90) | |
| Enterprise Value Over EBITDA | 15.38 | 18.12 | |
| Price Book Value Ratio | 8.51 | 5.79 | |
| Enterprise Value Multiple | 15.38 | 18.12 | |
| Price Fair Value | 8.51 | 5.79 |
Leadership at Restaurant Brands emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Dividend Yield 0.0336 | Forward Dividend Yield 0.0336 | Forward Dividend Rate 2.32 | Beta 0.962 |
Basic technical analysis of Restaurant Stock
As of the 24th of November, Restaurant Brands holds the Coefficient Of Variation of (4,433), risk adjusted performance of (0.01), and Variance of 1.57. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Restaurant Brands, as well as the relationship between them. Please check Restaurant Brands risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and kurtosis to decide if Restaurant Brands is priced some-what accurately, providing market reflects its current price of 69.1 per share. Given that Restaurant Brands has information ratio of (0.13), we recommend you to check out Restaurant Brands's recent market performance to make sure the company can sustain itself at a future point.Restaurant Brands' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Restaurant Brands insiders, such as employees or executives, is commonly permitted as long as it does not rely on Restaurant Brands' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Restaurant Brands insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Restaurant Brands' Outstanding Corporate Bonds
Restaurant Brands issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Restaurant Brands uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Restaurant bonds can be classified according to their maturity, which is the date when Restaurant Brands International has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| International Game Technology Corp BondUS460599AD57 | View |
Understand Restaurant Brands' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Restaurant Brands' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 0.9594 | |||
| Coefficient Of Variation | (4,433) | |||
| Standard Deviation | 1.25 | |||
| Variance | 1.57 | |||
| Information Ratio | (0.13) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.24) | |||
| Treynor Ratio | (0.1) | |||
| Maximum Drawdown | 6.17 | |||
| Value At Risk | (2.06) | |||
| Potential Upside | 2.06 | |||
| Skewness | 0.3591 | |||
| Kurtosis | 0.5913 |
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 0.9594 | |||
| Coefficient Of Variation | (4,433) | |||
| Standard Deviation | 1.25 | |||
| Variance | 1.57 | |||
| Information Ratio | (0.13) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.24) | |||
| Treynor Ratio | (0.1) | |||
| Maximum Drawdown | 6.17 | |||
| Value At Risk | (2.06) | |||
| Potential Upside | 2.06 | |||
| Skewness | 0.3591 | |||
| Kurtosis | 0.5913 |
Consider Restaurant Brands' intraday indicators
Restaurant Brands intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Restaurant Brands stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Restaurant Brands Corporate Filings
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 5th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 8th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 30th of August 2024 An amendment to the original Schedule 13D filing | ViewVerify |
Restaurant Stock media impact
Far too much social signal, news, headlines, and media speculation about Restaurant Brands that are available to investors today. That information is available publicly through Restaurant media outlets and privately through word of mouth or via Restaurant internal channels. However, regardless of the origin, that massive amount of Restaurant data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Restaurant Brands news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Restaurant Brands relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Restaurant Brands' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Restaurant Brands alpha.
Restaurant Brands Historical Investor Sentiment
Investor biases related to Restaurant Brands' public news can be used to forecast risks associated with an investment in Restaurant. The trend in average sentiment can be used to explain how an investor holding Restaurant can time the market purely based on public headlines and social activities around Restaurant Brands International. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Restaurant Brands' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Restaurant Brands and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Restaurant Brands news discussions. The higher the estimate score, the more favorable the investor's outlook on Restaurant Brands.
Restaurant Brands Corporate Directors
| Golnar Khosrowshahi | Independent Director | Profile | |
| Roberto Motta | Independent Director | Profile | |
| Carlos Sicupira | Independent Director | Profile | |
| Paul Fribourg | Lead Independent Director | Profile |
Additional Tools for Restaurant Stock Analysis
When running Restaurant Brands' price analysis, check to measure Restaurant Brands' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Restaurant Brands is operating at the current time. Most of Restaurant Brands' value examination focuses on studying past and present price action to predict the probability of Restaurant Brands' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Restaurant Brands' price. Additionally, you may evaluate how the addition of Restaurant Brands to your portfolios can decrease your overall portfolio volatility.