Cash conversion efficiency remains inconsistent, evidenced by an operating cash flow to net income ratio that has fluctuated between 0.64 and 4.79 over the past ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 1.77B | 1.71B | 1.5B | 1.32B | 1.49B | 1.73B | 921M | 1.48B | 1.17B | 1.38B | 1.27B | 1.2B | 259.3M | 325.2M | 224.4M |
| Operating CF Margin % | - | 18.17% | 17.88% | 18.84% | 22.91% | 30.07% | 18.54% | 26.34% | 21.75% | 30.2% | 30.61% | 29.73% | 21.63% | 28.37% | 11.39% |
| Operating CF Growth % | 144.13% | 14.04% | 13.61% | -11.21% | -13.67% | 87.41% | -37.6% | 26.7% | -15.7% | 8.9% | 5.33% | 364.64% | -20.26% | 44.92% | - |
| Net Income | 955M | 1.07B | 1.02B | 1.19B | 1.48B | 1.25B | 750M | 1.11B | 1.14B | 1.24B | 955.9M | 511.7M | -269.3M | 233.7M | 117.7M |
| Depreciation & Amortization | 314M | 301M | 264M | 194.5M | 190M | 201M | 189M | 185M | 180M | 181.1M | 172.1M | 182M | 68.8M | 65.8M | 114.2M |
| Stock-Based Compensation | 103M | 151M | 172M | 194M | 136M | 102M | 84M | 68M | 48M | 48.3M | 35.1M | 50.8M | 43.1M | 14.8M | 12.2M |
| Deferred Taxes | -83M | 97M | -5M | -437.89M | -60M | -5M | -208M | 58M | 29M | -742.4M | 80.1M | -32.3M | -61.9M | 32.1M | 8.9M |
| Other Non-Cash Items | 228.81M | 202M | 160M | 451.38M | 52M | 17M | 300M | -77M | -113M | 265.7M | 23.4M | 179.2M | 515.7M | 71.4M | 122.6M |
| Working Capital Changes | 61M | -112M | -109M | -269M | -310M | 158M | -194M | 131M | -123M | 394M | 2.4M | 313.4M | -37.1M | -92.6M | -151.2M |
| Change in Receivables | -73.69M | -89M | 7M | -147M | -105.64M | 7.93M | -30M | -54.23M | -200M | 331M | -27.1M | 62.6M | 62.7M | -23.6M | -94.8M |
| Change in Inventory | 48M | -67M | 30M | -43M | -61M | 12M | -10M | -15M | -7M | 2.9M | 7.7M | 9.2M | -24.1M | -7.8M | -7M |
| Change in Payables | 22.99M | 89M | -30M | 22M | 169M | 147.69M | 0 | 114.6M | 41M | 19.9M | 27.5M | 191.2M | -17.9M | -30.6M | -23.9M |
| Cash from Investing | -248.84M | -399M | -660M | 11M | -64M | -1.1B | -79M | -30M | -44M | -857.8M | 26.9M | -61.5M | -7.79B | 43M | 33.6M |
| Capital Expenditures | -259M | -265M | -201M | -120M | -100M | -106M | -117M | -62M | -86M | -36.7M | -33.7M | -115.3M | -30.9M | -25.5M | -70.2M |
| CapEx % of Revenue | 2.7% | 2.81% | 2.39% | 1.71% | 1.54% | 1.85% | 2.36% | 1.11% | 1.61% | 0.8% | 0.81% | 2.85% | 2.58% | 2.22% | 3.56% |
| Acquisitions | 20M | -152M | -540M | 0 | -12M | -1B | 0 | 0 | 8M | -1.64B | 30M | -252.45M | -7.38B | -11.9M | -15.3M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 11.16M | 18M | 7M | 19M | 48M | 2M | 5M | 8M | 1M | 26.6M | 2.6M | 275.75M | -7.9M | 65M | 104.9M |
| Cash from Financing | -1.48B | -1.44B | -625M | -1.37B | -1.31B | -1.09B | -821M | -842M | -1.28B | -935.2M | -590.9M | -2.12B | 8.57B | -132.7M | -174.6M |
| Debt Issued (Net) | -422.9M | -427M | 260M | -37M | -92M | 446M | 527M | -16M | 1M | 3.11B | -70M | -1.38B | 5.83B | -57.2M | -146.68M |
| Equity Issued (Net) | 16.07M | 33M | 78M | -440M | -275M | -491M | -298M | 102M | -560M | -301.5M | 13.7M | 5.1M | 3B | -1.3M | 1.5M |
| Dividends Paid | -1.12B | -1.11B | -1.03B | -990M | -971M | -974M | -1.01B | -901M | -728M | -663.5M | -538.1M | -362.4M | -105.6M | -84.3M | -14M |
| Share Repurchases | -32M | 0 | 0 | -500M | -326M | -551M | -380M | 0 | -621M | -330.2M | 0 | 0 | 0 | -7.3M | 0 |
| Other Financing | 48.21M | 66M | 66M | 93M | 31M | -74M | -40.34M | -27M | 2M | -3.08B | 3.5M | -380.1M | -158M | 10.1M | -15.42M |
| Net Change in Cash | 113M | -171M | 195M | -39M | 91M | -473M | 27M | 620M | -184M | -387M | 702.6M | -1.05B | 1.02B | 240.2M | 87.7M |
| Free Cash Flow | 1.51B | 1.45B | 1.3B | 1.2B | 1.39B | 1.62B | 804M | 1.41B | 1.08B | 1.35B | 1.24B | 1.09B | 228.4M | 299.7M | 154.2M |
| FCF Margin % | 15.79% | 15.36% | 15.49% | 17.13% | 21.37% | 28.23% | 16.18% | 25.24% | 20.14% | 29.4% | 29.79% | 26.89% | 19.05% | 26.15% | 7.82% |
| FCF Growth % | 22.83% | 11.29% | 8.23% | -13.45% | -14.2% | 101.49% | -43.14% | 31.05% | -19.79% | 8.9% | 13.38% | 377.01% | -23.79% | 94.36% | - |
| FCF per Share | 3.30 | 3.17 | 2.87 | 2.64 | 3.05 | 3.49 | 1.72 | 3.01 | 2.28 | 2.82 | 2.63 | 2.29 | 0.64 | 0.84 | 0.44 |
| FCF Conversion (FCF/Net Income) | 1.59x | 2.21x | 1.47x | 1.11x | 1.48x | 2.06x | 1.90x | 2.30x | 1.90x | 2.13x | 2.06x | 3.21x | 1.61x | 1.39x | 1.91x |
| Interest Paid | 561M | 0 | 785M | 761M | 487M | 404M | 463M | 584M | 561M | 447M | 407M | 408.3M | 199.9M | 139.1M | 170.3M |
| Taxes Paid | 179M | 0 | 293M | 290M | 275M | 256M | 267M | 248M | 433M | 200M | 159M | 208.3M | 35.2M | 35.6M | 40.1M |
High leverage and volatility
As reported in financial statements, QSR's operating cash flow to net income ratio has fluctuated wildly, ranging from 0.64 to 4.79 over the last ten quarters, which suggests that reported net income is an unreliable proxy for the company's actual cash-generating capacity in any given period.
The significant divergence between net income and operating cash flow appears driven by substantial working capital swings and non-cash adjustments. Investors should monitor whether this volatility reflects genuine operational friction or merely the timing of supply chain payments and franchise-related accruals.
Based on recent SEC filings, QSR's free cash flow margins have demonstrated high sensitivity to operational cycles, oscillating between a low of 2.6% and a peak of 21.2%, indicating that the company's ability to convert revenue into discretionary cash remains inconsistent across different fiscal quarters.
The erratic nature of these margins suggests that the business model is susceptible to lumpy capital expenditures and working capital requirements. This inconsistency complicates the assessment of long-term cash flow sustainability, particularly as the company balances modernization investments with its dividend obligations.
According to quarterly data, working capital changes have frequently acted as a significant drag on cash flow, with outflows reaching as high as $213 million in 2025Q1, highlighting the inherent volatility in managing a vertically integrated supply chain alongside a global franchise network.
These recurring working capital swings suggest that the company's cash position is highly sensitive to inventory management and the timing of franchisee collections. Such fluctuations may indicate underlying challenges in maintaining a lean cash conversion cycle during periods of rapid expansion or supply chain disruption.
As evidenced by the provided cash flow data, QSR consistently prioritizes dividend payments, which have remained remarkably stable near $260-$280 million per quarter, even during periods where free cash flow was insufficient to cover these distributions without relying on external financing or existing cash reserves.
The commitment to a high dividend payout ratio appears to limit the company's financial flexibility, especially given the ongoing need for capital-intensive store modernization. This strategy warrants further investigation into whether the current dividend level is sustainable without compromising the necessary reinvestment in the brand portfolio.
Quick answers to the most common questions about buying QSR stock.
Restaurant Brands International Inc. (QSR) generated $1.71B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Restaurant Brands International Inc. (QSR) generated $1.45B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Restaurant Brands International Inc. (QSR) spent $265.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Restaurant Brands International Inc. (QSR) returned $1.11B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.