Critical Contrast: Restaurant Brands International (QSR) & Its Peers

Restaurant Brands International (NYSE:QSR) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its competitors? We will compare Restaurant Brands International to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares Restaurant Brands International and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Restaurant Brands International	13.12%	33.43%	6.94%
Restaurant Brands International Competitors	2.25%	-42.24%	2.07%

Valuation & Earnings

This table compares Restaurant Brands International and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Restaurant Brands International	$9.43 billion	$776.00 million	19.66
Restaurant Brands International Competitors	$3.53 billion	$247.14 million	-161.39

Restaurant Brands International has higher revenue and earnings than its competitors. Restaurant Brands International is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Restaurant Brands International and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Restaurant Brands International	0	9	16	0	2.64
Restaurant Brands International Competitors	3781	17157	25409	900	2.50

Restaurant Brands International currently has a consensus price target of $83.52, suggesting a potential upside of 14.22%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 61.32%. Given Restaurant Brands International’s competitors higher probable upside, analysts plainly believe Restaurant Brands International has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

82.3% of Restaurant Brands International shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 1.2% of Restaurant Brands International shares are held by company insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Restaurant Brands International pays an annual dividend of $2.60 per share and has a dividend yield of 3.6%. Restaurant Brands International pays out 69.9% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.3% and pay out 37.8% of their earnings in the form of a dividend. Restaurant Brands International has raised its dividend for 10 consecutive years.

Volatility and Risk

Restaurant Brands International has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Restaurant Brands International’s competitors have a beta of 1.62, meaning that their average share price is 62% more volatile than the S&P 500.

Summary

Restaurant Brands International beats its competitors on 10 of the 15 factors compared.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.