Ever wondered if Restaurant Brands International stock is truly a bargain or just getting a lot of buzz? Let’s break down the factors that matter most to valuation-focused investors.
The share price has climbed 9.6% over the last month and is up 10.4% year-to-date, sparking fresh debate around growth potential and shifting risk perceptions.
Recent headlines have centered on the company’s strategic expansion moves and partnerships, which have drawn positive attention from both Wall Street watchers and sector peers. This context helps explain part of the recent share price momentum and suggests the market may be reassessing Restaurant Brands International’s long-term prospects.
On our proprietary Value Score, Restaurant Brands International lands at 2 out of 6 for undervalued signals. We’ll walk through a few classic ways to value the stock, and at the end, I’ll share what might be a more insightful, all-encompassing way to judge what QSR is worth.
Restaurant Brands International scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow (DCF) valuation estimates a company’s true worth by projecting future cash flows and discounting them back to their present value. This method helps investors see beyond current market prices, focusing instead on what the business may generate in free cash over many years.
For Restaurant Brands International, the latest twelve-month Free Cash Flow (FCF) is $1.30 Billion. According to analyst consensus, FCF is expected to grow, reaching $2.39 Billion by 2028. Only the first 5 years are based on direct analyst estimates. Forecasts beyond that rely on longer-range extrapolation models provided by Simply Wall St, which show steady FCF growth building towards 2035.
Based on this DCF approach, the resulting intrinsic value comes out at $89.13 per share. Compared to the company’s current share price, this signals the stock is trading at an 18.8% discount to its estimated fair value, implying it is undervalued by a notable margin right now.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Restaurant Brands International is undervalued by 18.8%. Track this in your watchlist or portfolio, or discover 921 more undervalued stocks based on cash flows.
QSR Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Restaurant Brands International.
For profitable companies like Restaurant Brands International, the Price-to-Earnings (PE) ratio is a widely used benchmark for valuation. It shows how much investors are paying for each dollar of earnings, which makes it especially effective when assessing steady income generators.
The “right” PE ratio is influenced not just by current earnings, but also by expectations for growth and the perceived riskiness of the business. Growing companies or those with strong competitive advantages tend to justify higher multiples, while riskier or slower-growing businesses generally trade at lower PE ratios.
Restaurant Brands International currently trades at a PE ratio of 25.5x. For perspective, this is above the broader hospitality industry average of 21.3x and slightly higher than the average among its closest peers, which stands at 24.3x.
Simply Wall St’s proprietary Fair Ratio for Restaurant Brands International is 29.2x. This figure factors in far more than profitable peers or sector averages, incorporating growth prospects, profit margins, risks, and the company’s market cap. As a result, the Fair Ratio provides a more holistic, tailored benchmark of what constitutes a reasonable multiple for the stock today.
Comparing the current PE (25.5x) to the Fair Ratio (29.2x), Restaurant Brands International stock is trading below its unique fair value by this metric, indicating it appears undervalued against its expected growth and risk profile.
Result: UNDERVALUED
NYSE:QSR PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1438 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, a simple yet powerful way for investors to describe their story and reasoning behind the numbers they use for fair value, as well as their expectations for Restaurant Brands International’s growth, profits, and margins.
A Narrative links the company’s story and strategic outlook directly to a financial forecast, and automatically converts those inputs into a fair value that you can compare to today’s stock price. Narratives are easy to create and access, and millions of investors are already using them on the Simply Wall St Community page as a means to share perspectives and track real-time updates.
This approach helps you decide when to buy or sell, since Narratives let you see instantly how your fair value changes as new earnings, news, or forecasts emerge. For example, some investors expect substantial growth from expansion in China and set bullish price targets as high as $93.0, while others are more cautious due to industry risks and price in a low case target of $60.0. Narratives make investing dynamic, more personal, and truly focused on what matters most to you as new information arrives.
Do you think there’s more to the story for Restaurant Brands International? Head over to our Community to see what others are saying!
NYSE:QSR Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include QSR.
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