Latest Ratios: P/E Ratio 30.5x · EV/EBITDA 16.8x · ROE 15.5%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.9B | $31.2B | $29.6B | $35.6B | $29.4B | $28.2B | $28.6B | $29.9B | $24.7B | $29.4B | $22.4B |
| Enterprise Value | $41.3B | $47.6B | $44.2B | $49.0B | $42.7B | $41.7B | $41.2B | $41.8B | $36.2B | $40.6B | $29.9B |
| P/E Ratio → | 30.49 | 29.03 | 20.50 | 20.78 | 19.90 | 22.56 | 38.19 | 26.91 | 21.61 | 24.20 | 32.87 |
| P/S Ratio | 2.64 | 3.31 | 3.52 | 5.07 | 4.52 | 4.91 | 5.76 | 5.34 | 4.62 | 6.41 | 5.40 |
| P/B Ratio | 6.35 | 6.04 | 6.11 | 7.53 | 6.89 | 7.31 | 7.69 | 7.02 | 6.84 | 6.44 | 3.30 |
| P/FCF | 17.16 | 21.52 | 22.73 | 29.62 | 21.17 | 17.38 | 35.57 | 21.15 | 22.93 | 21.82 | 18.13 |
| P/OCF | 14.51 | 18.19 | 19.69 | 26.93 | 19.75 | 16.31 | 31.05 | 20.26 | 21.23 | 21.24 | 17.65 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.05 | 5.26 | 6.98 | 6.57 | 7.26 | 8.29 | 7.47 | 6.75 | 8.88 | 7.22 |
| EV / EBITDA | 16.77 | 19.33 | 16.48 | 21.86 | 20.47 | 20.04 | 25.55 | 19.09 | 17.24 | 21.19 | 16.28 |
| EV / EBIT | 18.44 | 21.64 | 18.42 | 23.93 | 22.77 | 22.61 | 31.49 | 21.19 | 19.00 | 25.30 | 18.34 |
| EV / FCF | — | 32.85 | 33.96 | 40.73 | 30.75 | 25.73 | 51.20 | 29.59 | 33.51 | 30.20 | 24.24 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 41.1% | 41.1% | 36.0% | 39.9% | 39.9% | 41.4% | 39.7% | 42.7% | 58.2% | 49.1% | 47.4% |
| Operating Margin | 23.7% | 23.7% | 28.8% | 29.2% | 29.2% | 32.7% | 28.6% | 35.8% | 35.8% | 37.9% | 40.2% |
| Net Profit Margin | 8.2% | 8.2% | 12.1% | 16.9% | 15.5% | 14.6% | 9.8% | 11.5% | 11.4% | 14.2% | 14.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.5% | 15.5% | 21.3% | 26.5% | 24.8% | 22.1% | 12.2% | 16.3% | 15.0% | 11.4% | 9.5% |
| ROA | 3.1% | 3.1% | 4.3% | 5.2% | 4.4% | 3.6% | 2.2% | 3.0% | 3.0% | 3.2% | 3.3% |
| ROIC | 8.2% | 8.2% | 9.7% | 8.6% | 8.1% | 8.4% | 6.6% | 9.6% | 9.3% | 8.6% | 8.7% |
| ROCE | 9.9% | 9.9% | 11.1% | 9.8% | 9.0% | 8.8% | 6.8% | 10.2% | 10.0% | 9.3% | 9.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.41 | 3.41 | 3.29 | 3.07 | 3.40 | 3.79 | 3.80 | 3.16 | 3.41 | 2.71 | 1.33 |
| Debt / EBITDA | 7.14 | 7.14 | 5.95 | 6.47 | 6.94 | 7.03 | 8.77 | 6.14 | 5.88 | 6.46 | 4.89 |
| Net Debt / Equity | — | 3.18 | 3.02 | 2.83 | 3.12 | 3.51 | 3.38 | 2.80 | 3.16 | 2.47 | 1.11 |
| Net Debt / EBITDA | 6.67 | 6.67 | 5.45 | 5.97 | 6.38 | 6.51 | 7.80 | 5.44 | 5.45 | 5.88 | 4.10 |
| Debt / FCF | — | 11.33 | 11.23 | 11.12 | 9.58 | 8.35 | 15.63 | 8.44 | 10.58 | 8.38 | 6.10 |
| Interest Coverage | 4.26 | 4.26 | 2.99 | 2.67 | 3.46 | 4.31 | 2.70 | 3.31 | 3.22 | 3.16 | 3.63 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.98 | 0.98 | 0.97 | 1.01 | 0.97 | 0.97 | 1.41 | 1.29 | 1.07 | 1.06 | 1.73 |
| Quick Ratio | 0.91 | 0.91 | 0.91 | 0.94 | 0.91 | 0.92 | 1.35 | 1.24 | 1.01 | 1.01 | 1.67 |
| Cash Ratio | 0.40 | 0.40 | 0.56 | 0.53 | 0.56 | 0.58 | 0.97 | 0.90 | 0.65 | 0.66 | 1.21 |
| Asset Turnover | — | 0.37 | 0.34 | 0.30 | 0.29 | 0.25 | 0.22 | 0.25 | 0.27 | 0.22 | 0.22 |
| Inventory Turnover | 27.11 | 27.11 | 37.90 | 25.42 | 29.38 | 35.05 | 31.20 | 38.23 | 29.87 | 29.85 | 30.38 |
| Days Sales Outstanding | — | 30.72 | 30.31 | 38.93 | 34.45 | 34.79 | 39.38 | 34.33 | 30.80 | 39.00 | 35.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.4% | 3.6% | 3.5% | 2.8% | 3.3% | 3.5% | 3.4% | 3.0% | 2.9% | 2.3% | 2.4% |
| Payout Ratio | 142.8% | 142.8% | 100.8% | 83.2% | 96.3% | 116.2% | 197.3% | 140.1% | 119.0% | 102.5% | 87.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 3.4% | 4.9% | 4.8% | 5.0% | 4.4% | 2.6% | 3.7% | 4.6% | 4.1% | 3.0% |
| FCF Yield | 5.8% | 4.6% | 4.4% | 3.4% | 4.7% | 5.8% | 2.8% | 4.7% | 4.4% | 4.6% | 5.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 1.4% | 1.1% | 2.0% | 1.3% | 0.0% | 2.5% | 1.1% | 0.0% |
| Total Shareholder Yield | 3.4% | 3.6% | 3.5% | 4.2% | 4.4% | 5.4% | 4.7% | 3.0% | 5.5% | 3.4% | 2.4% |
| Shares Outstanding | — | $457M | $454M | $456M | $455M | $464M | $468M | $469M | $473M | $477M | $470M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying QSR stock.
Restaurant Brands International Inc.'s current P/E ratio is 30.5x. The historical average is 30.1x. This places it at the 73th percentile of its historical range.
Restaurant Brands International Inc.'s current EV/EBITDA is 16.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 25.7x.
Restaurant Brands International Inc.'s return on equity (ROE) is 15.5%. The historical average is 15.1%.
Based on historical data, Restaurant Brands International Inc. is trading at a P/E of 30.5x. This is at the 73th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Restaurant Brands International Inc.'s current dividend yield is 3.38% with a payout ratio of 142.8%.
Restaurant Brands International Inc. has 41.1% gross margin and 23.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Restaurant Brands International Inc.'s Debt/EBITDA ratio is 7.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated leverage amid margin volatility
Metrics are mathematically derived from official filings.
Premium Valuation vs. Disappointing Growth
At a forward P/E of 19.64x and EV/EBITDA of 14.26x, QSR trades at a discount to Yum! Brands but at a significant premium to peers like Wendy's, suggesting the market is pricing in a more optimistic growth trajectory than recent EPS misses and margin volatility warrant.
The stock's P/E expansion from a trailing 34.71x to a forward 19.64x implies significant earnings growth is expected, yet the recent Q2 2026 EPS miss against consensus casts doubt on this trajectory. The PEG ratio of 4.34 indicates the market is paying a high price for each unit of expected growth, a premium that appears stretched given the volatile gross margins and high leverage that may constrain future earnings power. Compared to McDonald's, QSR trades at a higher EV/EBITDA multiple despite generating lower net margins and returns on capital, which suggests the market may be underappreciating the operational challenges.
Volatile Margins Obscure Core Earning Power
Gross margin is wildly erratic, swinging from 49.6% in Q1 2026 to 34.5% in Q2 2026, indicating severe commodity and promotional cost pressures in the Tim Hortons supply chain that mask the underlying profitability of the high-margin franchise operations.
The sharp decline in gross margin in the latest quarter, despite stable operating margin, suggests significant non-recurring items or accounting treatments are inflating reported operating profitability. Net margin has improved to 20.1%, but this appears disconnected from the gross margin performance and raises questions about the quality and sustainability of the earnings. For a franchisor, the true earning power should be reflected in stable franchise fee and royalty revenue, which the volatile supply chain costs in the Tim Hortons segment are currently obscuring.
Persistently Low Returns on Invested Capital
Return on Invested Capital (ROIC) has remained stubbornly low, hovering between 1.7% and 2.6% over the past ten quarters, indicating that the company is failing to generate adequate returns on the capital invested in the business, especially when compared to peer Yum! Brands' 48.1% ROIC.
The extremely low ROIC, especially when contrasted with the high leverage, suggests that the invested capital is not translating into economic profits. The gap between QSR's ROIC and its weighted average cost of capital likely represents a significant value destruction risk. This poor capital efficiency may stem from the capital-intensive distribution operations at Tim Hortons and the significant acquisition premiums reflected in the $6.2B of goodwill, neither of which appears to be generating commensurate returns.
Structural Leverage Constrains Financial Flexibility
Despite a recent reduction, the debt-to-equity ratio remains at an extreme 2.90x as of Q2 2026, with interest coverage of 4.21x, indicating that a substantial portion of operating income is committed to servicing a debt load that limits strategic options and amplifies refinancing risk.
The high leverage is a structural feature of the capital-light model, but the current level appears aggressive, particularly with the company maintaining significant shareholder returns amid volatile cash flows. The interest coverage ratio, while adequate, has shown volatility (e.g., 2.58x in Q2 2025) and would be a key vulnerability in a rising rate environment or if earnings weaken. The thin equity cushion means that further aggressive actions like the Firehouse Subs acquisition or continued buybacks could push leverage to uncomfortable levels.
Negative Cash Cycle Highlights Supplier Power
The consistently negative cash conversion cycle (CCC), ranging from -5 to -19 days, is driven by an extended Days Payable Outstanding (DPO) averaging over 50 days, indicating that QSR effectively uses supplier financing to fund its operations, a key advantage of its scale.
The negative CCC is a positive working capital feature, allowing the company to collect from franchisees (DSO around 28-30 days) before paying suppliers. However, the volatility in DPO (from 42 to 66 days) suggests this dynamic is not perfectly stable and may be influenced by payment terms negotiation or commodity price fluctuations. The low asset turnover of 0.10 confirms the asset-light model's reliance on franchise royalties rather than high-volume inventory sales.
P/E Multiple Misleads for a Capital-Intensive Franchisor
The P/E ratio is the most commonly misapplied metric for QSR because it fails to account for the high leverage distorting equity earnings and the capital-intensive Tim Hortons supply chain, making EV/EBITDA a more accurate measure of valuation and operating cash generation.
The P/E of 34.71x appears extreme for a company with low single-digit ROIC and volatile margins, but this is partly because the high debt load suppresses equity earnings while interest expense is a significant, non-operational cost. Furthermore, a large portion of revenue comes from lower-margin supply chain operations, which inflates sales but dilutes earnings. Using EV/EBITDA provides a cleaner view of the enterprise's valuation independent of capital structure and gives a better comparison to peers like McDonald's, as it captures the cash-generating ability of the entire business, including the leverage used to acquire it.