Recommended as Stock of the Week on May 18, 2026

Burgers, coffee, royalties - and a trust that collects the best of it

TickerQSP-UN.TO
Recommended Price104.73 CAD
Current Price 104.73 CAD
Restaurant Brands International Limited Partnership – stock chart

Scores at time of recommendation (May 18, 2026)

Leeway Score
63/100
Excellent
Business Rating
48/100
Fair
Market-Fit Rating
67/100
Excellent
Cycle Rating
74/100
Excellent

More about our scores in Help

5-year stock timeline

2026-08-10 — Share repurchase: exchangeable units buyback announced

RBI Limited Partnership announced repurchase of 2,784,549 Class B exchangeable limited partnership units for cash, reducing fully diluted share count via an 8‑K filing and related press items [7]. Investors interpreted the buyback as shareholder‑friendly and a signal that management believed intrinsic value exceeded market price. The narrative shifted toward capital return and EPS enhancement despite ongoing margin pressures. Price reacted positively around the announcement, breaking out from a near‑term range and bouncing from a prior drawdown [7][12].

2026 Q2 / Aug 2026 reporting period — Q2 results and commentary (period ended June 30, 2026)

The Partnership released Q2 2026 results showing revenue growth driven by acquisitions and higher supply‑chain sales. Operating income and net income faced headwinds from FX losses and nonrecurring items, with commentary and tranche updates published in Aug 2026 releases [2][12][13]. The market acknowledged revenue resilience but grew more focused on margin stability and FX/tax headwinds. The narrative shifted from pure growth to growth-with-margin-risk and active capital allocation through buybacks and unit repurchases. The stock traded in consolidation after an earlier 2026 recovery, punctuated by rallies on positive top‑line beats and pullbacks on margin and FX news [12][13].

2026 Q1 / May 2026 — Q1 2026 results and margin focus

Q1 2026 results showed revenue near US$2.3b and basic EPS around US$1.33. Analysts highlighted margin slippage and the need to convert revenue into operating leverage [14]. Investor perception moved toward selective optimism: revenue momentum reinforced the multi‑brand growth thesis across Burger King, Tim Hortons, and Popeyes, but rising costs, FX volatility and one‑offs tempered enthusiasm. Emphasis on ROI of buybacks and balance sheet uses increased. An earnings‑driven rally preceded consolidation as focus shifted to margins [14].

2025 full year and throughout 2025 — decelerating EPS, active buybacks, integration gains

FY2024 results reported in early 2025 and 2025 quarterly updates showed strong revenue growth (FY2024 revenue reported near US$8.4–9.4b across filings) but EPS compressing versus 2023/2024 levels. The Partnership announced and executed equity buyback tranches in 2025 as part of an ongoing program referenced in 2025/2026 notices [4][3][11]. The story evolved from high‑growth compounding to a mix of growth plus capital returns. Investors debated the valuation gap between operational growth and margin/earnings cyclical pressure, viewing buybacks as offsetting dilution from prior exchangeable units and franchise movements. 2025 featured multi‑month rallies on revenue beats alternating with drawdowns around EPS misses, with new uptrends following buyback and earnings confirmations punctuated by intermittent corrections [3][4][11].

2024 (Q1–Q4 2024) — strong revenue expansion, EPS peak then decline in full‑year reporting

Restaurant Brands International Partnership and parent reported robust revenue increases in 2024 (year revenue cited near US$8.4b; operating income increased but net income and EPS impacted by rising expenses in late 2024). Q3/Q4 operating results and dividends were reported; full‑year EPS reported lower than 2023 in some releases, with commentary noting nonrecurring gains in 2023 that did not recur [8][4][15]. The market initially rewarded visible multi‑brand recovery and acquisitions through franchise conversions and system expansion, labelling the name a compounder. The narrative later shifted to vigilance on margin sustainability as inflationary and supply‑chain costs fed through. 2024 saw an extended uptrend through much of the year on top‑line beat momentum, then a flattening and range as margins became the focal point [8][4][15].

2023 — post‑pandemic recovery and structural growth story consolidation

Continued recovery across brands with system sales growth, franchise acquisitions, and improved operating leverage. 2023 financials showed material profit improvement relative to 2021 levels per multi‑year operating metrics [6]. Investors embraced the franchise‑light, cash‑flowing compounder thesis with steady same‑store sales improvements and international expansion underpinning a growth plus dividend and buyback narrative. Valuation premium relative to peers was debated but many viewed the name as a resilient consumer staple in quick‑service restaurants. A sustained uptrend from 2021 lows through 2023 reflected normalizing fundamentals [6].

2022 — normalization from COVID distortions, margin pressure episodes

Earnings and revenue normalized as pandemic distortions faded. Cost inflation and supply‑chain disruptions pressured margins at points, while unit growth and menu innovation helped the top line [6]. The market shifted from pandemic‑recovery euphoria to assessing execution risk. Growth remained credible but margin cyclicality and commodity inflation introduced short‑term skepticism. Some investors reclassified the name from deep value recovery to a mid‑cycle growth name with margin sensitivity. Trading was volatile with corrective drawdowns on margin and inflation scares, followed by rallies when same‑store sales or guidance beat expectations [6].

2021 — pandemic aftermath, restoration of growth narrative

Post‑2020 recovery in traffic and sales emerged. Executives highlighted return‑to‑growth initiatives, franchise conversions and unit expansion plans. Financials began to show material improvement versus pandemic troughs [6]. The perception shifted from distressed pandemic recovery to longer‑term compounder prospects. Investors rewarded operational resilience but remained attentive to unit economics and international execution risk. An early recovery phase took hold with a multi‑quarter rally in 2021 as the trend changed [6].

Key Points

From recommendation (May 18, 2026)

  • Franchise model with four brands (Burger King, Tim Hortons, Popeyes, Firehouse Subs) - low-capital, scalable, high-margin
  • Sales growth of 7.3 % combined with 102 % profit growth - the operating leverage effect is evident
  • Operating margin of 26.7 % and ROE of 28.1 % speak for disciplined management
  • Fast food benefits structurally from consumer restraint - downtrading from more expensive restaurants supports demand
  • Equity ratio improves continuously: 12.3 % (2023) → 12.6 % (2024) → 14.2 % (2025)
  • EBIT margin under slight pressure (29.2% → 23.7% over three years) - development deserves attention

Investment Thesis

From recommendation (May 18, 2026)

Restaurant Brands International Partnership (QSP-UN.TO) is the Canadian trust structure behind one of the largest quick service restaurant groups in the world. The business model is essentially a royalty machine: franchisees bear the operating risk, QSP collects license fees and system fees - with comparatively low capital investment. This is reflected in an operating margin of just under 27% and a return on equity of over 28%. The sales growth of 7.3% combined with profit growth of 102% shows that economies of scale and cost discipline are taking effect. The trust structure makes QSP interesting for distribution-oriented investors, but also brings with it specific tax and structural features that need to be understood before an investment is made.

Key risks and downside factors

Restaurant Brands International (QSP-UN.TO) operates a portfolio of franchised quick-service restaurants—Burger King, Tim Hortons, Popeyes, and Firehouse Subs—competing across burgers, coffee, chicken, and sandwiches against established global QSR chains. Its main competitors are large, diversified franchised restaurant operators and specialty beverage chains that match it on scale, digital ordering capabilities, delivery partnerships, and franchise economics. The business faces pressure from commodity costs and franchisee margins, competition from both established public operators and faster-growing private chains, execution risk in international markets, and operational headwinds around labor, food safety, and currency fluctuations [1].

  • Commodity and input cost volatility—beef, chicken, coffee, oil—compresses both franchisee and company margins.
  • Franchisee economics and relationship risk — weak franchisee profitability or disputes can slow growth and erode royalties and fees.
  • Intense competition from global public chains and high-growth private players such as Chick-fil-A and Raising Cane's is eroding traffic and pricing power.
  • Regulatory, labour, and food-safety exposures spanning multiple jurisdictions create operational friction—minimum wage increases, franchising rule changes, currency fluctuations, and the inherent complexity of executing internationally all compound the baseline business risk [8], [3].

Competitive landscape

Restaurant Brands International (QSP-UN.TO) operates a multi-brand franchise portfolio spanning Burger King, Tim Hortons, Popeyes, and Firehouse Subs, competing across burgers, chicken, coffee and sandwiches against established global players and focused single-brand operators. McDonald's and Yum! Brands present formidable competitive pressure through scale and digital capabilities. Tim Hortons faces particular headwinds from specialty coffee leaders like Starbucks and Dunkin'. Fast-growing chicken and sandwich concepts—Chick-fil-A, Jersey Mike's, Domino's—are drawing traffic and pressuring unit economics across the portfolio. The business carries material exposure to franchise dynamics, commodity cost volatility, and regulatory shifts, any of which could constrain margins or slow growth execution.

CompanyTicker
McDonald's CorporationMCD.NYSE
Yum! Brands, Inc.YUM.NYSE
Starbucks CorporationSBUX.NASDAQ
Chipotle Mexican Grill, Inc.CMG.NYSE
Domino's Pizza, Inc.DPZ.NYSE
Darden Restaurants, Inc.DRI.NYSE
Yum China Holdings, Inc.YUMC.NYSE

Private competitors

  • Chick-fil-A
  • Jersey Mike's Subs
  • Raising Cane's
  • Independent regional/fast-casual chains and local coffee shops (aggregate)

Get More Stock Analyses Like This

Receive hand-picked stock recommendations with detailed analyses every week

Start Free Trial

Catalysts

From recommendation (May 18, 2026)

  • Quarterly figures: Development of system sales, comparable sales and net new openings across all four brands
  • Bank of Canada interest rate decision - falling interest rates improve refinancing conditions and make trust distributions relatively more attractive
  • Progress of Carrols integration into the franchise system - monitor refranchising revenues and margin effects
  • International expansion of Burger King and Popeyes, especially in emerging markets
  • Stabilization or turnaround in the EBIT margin as a confidence signal for operational management

Analysis

From recommendation (May 18, 2026)

The Restaurant Brands franchise model is structurally robust: those who do not operate their own outlets have no rental contracts, no kitchen staff and no perishable goods on their balance sheet - but reliable license streams from over 30,000 locations worldwide. Tim Hortons is deeply anchored in everyday culture in Canada, while Burger King and Popeyes offer value for money in the value segment, which attracts customers from the upscale restaurant segment, especially in inflationary phases. The capital allocation of the past - acquisitions of Tim Hortons and Popeyes at reasonable prices without ruining the balance sheet - speaks for a management that can do the math. On the other hand, the EBIT margin shows a clear downward trend from 29.2% (2023) to 23.7% (2025), which requires close observation: if system costs rise faster than royalty income, the quality of the model suffers. Social headwinds from debates about nutrition, obesity and sustainability are real, but have so far been more of a reputational issue than a direct sales risk factor - especially as the company is responding with plant-based alternatives and healthier options. The trust structure (QSP-UN.TO) has its own liquidity and tax aspects compared to the ordinary share (QSR), which should be examined for German investors. Anyone looking for a low-capital, brand-strong franchise model with distribution potential and who accepts the structural peculiarities of a Canadian trust will find a conceptually convincing, albeit not cheap, investment here - a P/E ratio of 36.7 and a P/B ratio of 9.4 leave little room for disappointment.

Performance Figures of Restaurant Brands International Limited Partnership

in CAD

1M High / Low
106.00 / 101.57
52W High / Low
107.96 / 85.47
5Y High / Low
109.74 / 59.47
1M
+4.36%
3M
+2.14%
6M
+18.22%
1Y
+23.53%
3Y
+22.14%
5Y
+54.22%

Relative Performance vs Benchmarks

PeriodRestaurant Brands International Limited Partnership vs DAX vs S&P 500 (SPY)
1M +4.36% -2.12% -0.09%
3M +2.14% -6.63% -3.23%
6M +18.22% +12.45% +3.92%
1Y +23.53% +14.99% +1.54%
3Y +22.14% -46.52% -62.56%
5Y +54.22% -11.84% -32.85%

Get More Stock Analyses Like This

Receive hand-picked stock recommendations with detailed analyses every week

Start Free Trial

Historical valuation trends

How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.

PeriodP/E RatioP/S RatioP/B RatioP/CF Ratio
Current27.63.69.119.0
1Y ago34.33.212.318.4
3Y ago33.15.015.925.8
5Y ago44.55.614.720.4

Frequently Asked Questions

From recommendation (May 18, 2026)

Is Restaurant Brands International Limited Partnership a good investment?

Restaurant Brands International Limited Partnership has a Leeway Score of 63/100, which is rated as Excellent. The Leeway Score combines business quality, fundamental evaluation, and valuation cycle into a comprehensive assessment. A higher score indicates stronger investment quality based on AI-powered fundamental analysis.

What does Restaurant Brands International Limited Partnership do?

Restaurant Brands International Limited Partnership is a company characterized by the following investment thesis: Restaurant Brands International Limited Partnership operates and franchises quick service restaurants in the United States and internationally. The company operates through six segments: Tim Hortons, Burger King, Popeyes Louisiana Kitchen, Firehouse Subs, International, and Restaurant Holdings. Its restaurants offers coffee and other beverages, baked goods, and food products under the Tim Hortons brand name; hamburgers, chicken, and other specialty sandwiches under the Burger King brand name; fried bone-in chicken, chicken sandwiches, chicken tenders, wings, fried shrimp, and regional items under the Popeyes brand name; and sandwiches, subs piled with meats and cheese, chili, soups, and other sides under the Firehouse Sub brand name. Restaurant Brands International Inc. serves as the general partner of the company. The company was formerly known as New Red Canada Limited Partnership and changed its name to Restaurant Brands International Limited Partnership in December 2014. The company was founded in 1954 and is headquartered in Toronto, Canada. Restaurant Brands International Limited Partnership operates as a subsidiary of Restaurant Brands International Inc. Restaurant Brands International Limited Partnership operates in the Consumer Cyclical / Restaurants industry is based in Canada employs around 53,500 people. Restaurant Brands International Limited Partnership recently reported revenue of about 9.70B CAD, a profit margin of 17.53%, return on equity of 34.79%, a market capitalisation around 35.57B CAD, valuation multiples of roughly 19x earnings, 3.7x sales, 4.5x book value. Restaurant Brands International Limited Partnership has an ongoing dividend policy and pays around 2.54 CAD per share (2.50% yield).

What are the key metrics for QSP-UN.TO?

Key metrics for QSP-UN.TO include valuation (P/E 36.7, P/S 3.7, P/B 9.4), profitability (profit margin 13.54%, ROE 28.14%), and growth (revenue 7.30%, earnings 102.00%). Market capitalization is 48.07B CAD. These metrics give an overview of the company's financial performance and valuation.

How has Restaurant Brands International Limited Partnership's stock price performed?

Restaurant Brands International Limited Partnership's stock has returned — over 1 year, — over 3 years, and — over 5 years. Performance can vary depending on market conditions and company developments.

How is QSP-UN.TO valued?

QSP-UN.TO has the following valuation metrics: P/E Ratio: 36.7, P/S Ratio: 3.7, P/B Ratio: 9.4. These metrics help assess whether the stock is fairly valued compared to its fundamentals.

What are the growth catalysts for Restaurant Brands International Limited Partnership?

The key growth catalysts for Restaurant Brands International Limited Partnership are:
  • Quarterly figures: Development of system sales, comparable sales and net new openings across all four brands
  • Bank of Canada interest rate decision - falling interest rates improve refinancing conditions and make trust distributions relatively more attractive
  • Progress of Carrols integration into the franchise system - monitor refranchising revenues and margin effects
  • International expansion of Burger King and Popeyes, especially in emerging markets
  • Stabilization or turnaround in the EBIT margin as a confidence signal for operational management
These factors can positively influence the company's future growth and performance.

What are the key risks when investing in QSP-UN.TO?

Key risks for QSP-UN.TO include: Restaurant Brands International (QSP-UN.TO) operates a portfolio of franchised quick-service restaurants—Burger King, Tim Hortons, Popeyes, and Firehouse Subs—competing across burgers, coffee, chicken, and sandwiches against established global QSR chains. Its main competitors are large, diversified franchised restaurant operators and specialty beverage chains that match it on scale, digital ordering capabilities, delivery partnerships, and franchise economics. The business faces pressure from commodity costs and franchisee margins, competition from both established public operators and faster-growing private chains, execution risk in international markets, and operational headwinds around labor, food safety, and currency fluctuations [1].
  • Commodity and input cost volatility—beef, chicken, coffee, oil—compresses both franchisee and company margins.
  • Franchisee economics and relationship risk — weak franchisee profitability or disputes can slow growth and erode royalties and fees.
  • Intense competition from global public chains and high-growth private players such as Chick-fil-A and Raising Cane's is eroding traffic and pricing power.
  • Regulatory, labour, and food-safety exposures spanning multiple jurisdictions create operational friction—minimum wage increases, franchising rule changes, currency fluctuations, and the inherent complexity of executing internationally all compound the baseline business risk [8, 3, 21].
Investors should consider these risk factors carefully before making an investment decision.

Who are the main competitors of Restaurant Brands International Limited Partnership?

Restaurant Brands International Limited Partnership competes with several listed peers in its sector. Restaurant Brands International (QSP-UN.TO) operates a multi-brand franchise portfolio spanning Burger King, Tim Hortons, Popeyes, and Firehouse Subs, competing across burgers, chicken, coffee and sandwiches against established global players and focused single-brand operators. McDonald's and Yum! Brands present formidable competitive pressure through scale and digital capabilities. Tim Hortons faces particular headwinds from specialty coffee leaders like Starbucks and Dunkin'. Fast-growing chicken and sandwich concepts—Chick-fil-A, Jersey Mike's, Domino's—are drawing traffic and pressuring unit economics across the portfolio. The business carries material exposure to franchise dynamics, commodity cost volatility, and regulatory shifts, any of which could constrain margins or slow growth execution.
  • McDonald's Corporation (MCD.NYSE)
  • Yum! Brands, Inc. (YUM.NYSE)
  • Starbucks Corporation (SBUX.NASDAQ)
  • Chipotle Mexican Grill, Inc. (CMG.NYSE)
  • Domino's Pizza, Inc. (DPZ.NYSE)
  • Darden Restaurants, Inc. (DRI.NYSE)
  • Yum China Holdings, Inc. (YUMC.NYSE)
These competitors influence pricing power, growth opportunities and relative valuation.

Key Metrics

From recommendation (May 18, 2026)

Market Capitalization
48.07B CAD
P/E Ratio
36.69
Analyst Target Price
—

Valuation Metrics

P/S Ratio
3.65
P/B Ratio
9.36

Profitability Metrics

Profit Margin
13.54%
Operating Margin
26.68%
Return on Equity
28.14%
Return on Assets
6.70%

Growth Metrics

Revenue Growth
7.30%
Earnings Growth
102.00%

Dividend history

Long-term record of paid dividends (amount per share and dividend yield at the time of payment).

YearDividendYield at paymentAvg. yield
20260.92 CAD0.91%0.85%
20260.89 CAD0.87%
20250.85 CAD0.88%
20250.86 CAD0.98%
20250.85 CAD0.93%
20250.89 CAD0.91%
20240.84 CAD0.87%
20240.79 CAD0.83%
20240.79 CAD0.85%
20240.79 CAD0.73%
20230.73 CAD0.73%
20230.74 CAD0.81%
20230.73 CAD0.72%
20230.75 CAD0.88%
20220.74 CAD0.81%

Key financial figures

All figures in USD

Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.

20252024202320222021
Revenue9.43B8.41B7.02B6.50B5.74B
Operating income (EBIT)2.24B2.42B2.05B1.90B1.88B
Net income776.00M1.02B1.19B1.01B838.00M
Free cash flow1.45B1.30B1.20B1.39B1.62B
Total assets25.61B24.63B23.39B22.75B23.25B
Equity3.63B3.11B2.87B2.50B2.24B
Net debt16.42B14.62B13.38B13.31B13.53B

Unlock Premium

  • Weekly top picks
  • 25,000+ stock analyses
  • AI-powered ratings
Start Free Trial

Cancel anytime

Full Analysis

Detailed fundamental analysis of this stock

View Full Analysis

Want More of This?

Get a hand-picked stock recommendation with detailed analysis every week

View Stock of the Week
General Terms and Conditions
© Leeway
PWP Leeway UG (haftungsbeschränkt)
Leeway Icon