Restaurant Brands International Inc. (QSR) Stock Analysis
A diversified, globally scaled franchisor compounding through a clear 2028 growth algorithm—if Burger King’s turnaround and refranchising deliver before labor, rates, and value wars bite.
Overview
Restaurant Brands International (QSR) is a large global quick-service restaurant franchisor with four iconic brands—Tim Hortons, Burger King, Popeyes, and Firehouse Subs—operating in 120+ countries with ~33,000 restaurants and ~$46.8B in 2025 system-wide sales. The model is predominantly asset-light: ~95% of restaurants are franchised, enabling recurring, high-margin revenue from royalties/fees and real estate rents, while leveraging franchisee capital for unit growth. A meaningful additional revenue layer comes from Tim Hortons Canada’s integrated supply chain (coffee roasting and distribution). 2025 results showed steady momentum: system sales +5.3%, comps +2.4%, net restaurant growth +2.9%, revenues $9.4B, adjusted operating income $2.6B, and adjusted EPS $3.69, alongside ~ $1.6B free cash flow. Near-term complexity comes from increased company-operated exposure after the Carrols acquisition (higher sales, lower margins), but management’s stated intent is to refranchise and return toward a near-fully franchised model over time.