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 — Exchange of certain Exchangeable Units; RBH stake clarified

RBI announced receipt of exchange notices and cash settlements for exchangeable units, reducing outstanding partnership exchangeable units. As-adjusted, RBH (Bermuda-based holding) will hold approximately 21% of RBI's fully diluted common shares following the exchange scheduled for August 31, 2026.

Market participants viewed this as continued corporate simplification—reducing exchangeable units while aligning economic and voting interests. The move was seen as modestly positive for share-count clarity, reducing complexity around the partnership structure and potential drag from exchangeable-unit conversions. Exchange date was scheduled for August 31, 2026, with RBH positioned to hold roughly 21% of fully diluted common shares post-exchange [10].

2026 (February) — Accounting change for BK China JV recognition

RBI announced that beginning in 2026 it would account for its interest in the Burger King China joint venture under the equity method and begin recognizing franchise revenue (primarily royalties) in its INTL segment.

The accounting change signaled improved transparency for international royalty streams. Investors interpreted the move as making reported revenue and segment mix more reflective of underlying economics, and adjusted models accordingly for higher reported INTL franchise revenue and different near-term revenue recognition patterns. The disclosure appeared in RBI's press release of fourth-quarter and full-year 2025 results filed February 12, 2026 [3].

2025 (Full-year and Q4 results announced February 12, 2025) — Strong consolidated sales and dividend guidance for 2025

RBI reported full-year and fourth-quarter 2024 results. The board declared a quarterly cash dividend of US$0.62 per common share and per partnership exchangeable unit for Q1 2025, with management targeting total declared dividends of US$2.48 per share/unit for 2025.

Investors interpreted the dividend level and target as evidence of predictable cash returns and management confidence in cash flow generation. The firm's positioning as a yield-plus-growth operator through brands like Tim Hortons, Burger King, and Popeyes reinforced an income-growth narrative. Dividend declared was US$0.62 per common share and per partnership exchangeable unit for Q1 2025, with a target of US$2.48 total declared dividends per share/unit for 2025 [1][12][14].

2025 (Q2 and Q3 results) — Continued systemwide sales growth and same-store trends

RBI reported quarter results through 2025 showing continued consolidated system-wide sales growth and positive comparable-store sales. Q2 2025 results were released July 8, 2025; Q3 2025 results were released October 30, 2025.

Ongoing comparable sales growth reinforced a recovery and steady-growth story following pandemic-related volatility. Investors regarded the brands as benefiting from pricing, menu innovation, and international expansion, supporting multiple expansion narratives for a defensive consumer play. Company press releases for Q2 and Q3 2025 reported consolidated system-wide sales growth and comparable-sales gains [8][9].

2024 (Full-year results filed February 12, 2024; SEC 2024 10-K filing) — Dividends, share repurchases and capital return history

RBI's 2024 reporting and Form 10-K disclosed dividend payments and partnership distributions of US$0.58 per common share and per partnership exchangeable unit paid January 3, 2025 for Q4 2024. The company's prior share repurchases totaled US$500 million in 2023 and US$326 million in 2022, with no repurchases in 2024.

The combination of dividends and historical buybacks shaped RBI's investor perception as a cash-return focused franchisor with opportunistic repurchases. The absence of repurchases in 2024 prompted some investors to view capital deployment as more conservative that year, though dividends remained consistent. Dividend/distribution was US$0.58 per share/unit paid January 3, 2025 for Q4 2024; aggregated repurchases totaled US$500 million in 2023 and US$326 million in 2022, with none in 2024 [12][14].

2023 — Post-pandemic recovery, systemwide sales rebound and capital return resume

Across 2023 RBI reported improving systemwide sales and comparable sales as dining demand normalized. The company resumed significant capital return activities, including share repurchases through distributions to RBI.

Investor sentiment shifted toward viewing RBI as a resilient franchisor benefiting from pent-up demand, pricing, and international growth. The company's capital returns underscored management confidence in cash flow resilience and shareholder-focused capital allocation. RBI distributed US$500 million to repurchase common shares in 2023 [11][12].

2021–2022 — Pandemic aftermath, strategic adjustments, and recovery trajectory

Through 2021 and 2022 RBI navigated pandemic recovery, reported progressive improvement in systemwide sales and comparable-store sales, and made capital allocation choices including repurchases and dividend maintenance. 2022 included notable repurchase activity with US$326 million distributed to repurchase common shares.

Investors weighed near-term headwinds (labor, supply, reopening variability) against long-term franchise economics. By late 2022 the narrative shifted from pandemic-recovery uncertainty toward recovery and durable cash generation, supporting the view of RBI as a value-plus-growth franchisor. RBI distributed US$326 million in 2022 toward repurchasing common shares [12][14].

2021 — Pandemic-era performance and strategic resilience

RBI's brands navigated pandemic-related restrictions and shifting consumer behavior. Results and disclosures in 2021 emphasized operational resilience of the franchised model and strategic investments in delivery and digital capabilities.

Market perception was that RBI's royalty-and-franchise-heavy model provided downside protection versus company-operated models. Investor focus was on recovery cadence, margin stabilization, and long-term growth from international expansion and digital channels [12][14].

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)

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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
110.09 / 103.46
52W High / Low
110.09 / 89.67
5Y High / Low
110.09 / 59.47
1M
-1.53%
3M
+2.76%
6M
+4.46%
1Y
+19.55%
3Y
+29.69%
5Y
+56.10%

Relative Performance vs Benchmarks

PeriodRestaurant Brands International Limited Partnership vs DAX vs S&P 500 (SPY)
1M -1.53% +2.50% -1.41%
3M +2.76% +4.25% -0.10%
6M +4.46% -4.31% -12.65%
1Y +19.55% +14.03% +3.60%
3Y +29.69% -34.08% -55.68%
5Y +56.10% -10.16% -32.06%

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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
Current26.33.58.718.2
1Y ago34.33.212.418.4
3Y ago29.34.414.222.8
5Y ago42.85.414.419.6

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 34.72B CAD, valuation multiples of roughly 18.3x earnings, 3.6x sales, 4.6x book value. Restaurant Brands International Limited Partnership has an ongoing dividend policy and pays around 2.54 CAD per share (2.46% 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
20260.91 CAD0.88%0.85%
20260.92 CAD0.91%
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%

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

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