Analyzing Restaurant Brands International (QSR) and its Peers
Restaurant Brands International (NYSE: QSR) is one of 44 public companies in the “Restaurants & Bars” industry, but how does it contrast to its peers? We will compare Restaurant Brands International to similar companies based off the strength of its analyst recommendations, dividends, institutional ownership, profitability, earnings, valuation and risk.
Institutional & Insider Ownership
76.7% of Restaurant Brands International shares are held by institutional investors. Comparatively, 70.6% of shares of all “Restaurants & Bars” companies are held by institutional investors. 4.2% of Restaurant Brands International shares are held by insiders. Comparatively, 20.2% of shares of all “Restaurants & Bars” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Restaurant Brands International and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Restaurant Brands International||$4.32 billion||$1.91 billion||43.82|
|Restaurant Brands International Competitors||$2.03 billion||$348.56 million||-5.74|
Restaurant Brands International has higher revenue and earnings than its peers. Restaurant Brands International is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.
This table compares Restaurant Brands International and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Restaurant Brands International||12.66%||22.71%||3.99%|
|Restaurant Brands International Competitors||1.52%||19.28%||1.61%|
Volatility & Risk
Restaurant Brands International has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Restaurant Brands International’s peers have a beta of 0.66, meaning that their average share price is 34% less volatile than the S&P 500.
This is a summary of recent recommendations for Restaurant Brands International and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Restaurant Brands International||0||3||12||0||2.80|
|Restaurant Brands International Competitors||362||1687||2169||82||2.46|
Restaurant Brands International currently has a consensus target price of $64.57, suggesting a potential upside of 2.33%. All “Restaurants & Bars” companies have a potential upside of 13.00%. Given Restaurant Brands International’s peers higher possible upside, analysts clearly believe Restaurant Brands International has less favorable growth aspects than its peers.
Restaurant Brands International pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. Restaurant Brands International pays out 52.8% of its earnings in the form of a dividend. As a group, “Restaurants & Bars” companies pay a dividend yield of 3.1% and pay out 61.2% of their earnings in the form of a dividend.
Restaurant Brands International beats its peers on 11 of the 15 factors compared.
Restaurant Brands International Company Profile
Restaurant Brands International Inc. is a quick service restaurant (QSR) company. The Company had over 20,000 restaurants in more than 100 countries and the United States territories, as of December 31, 2016. It operates through two segments: Tim Hortons (TH) and Burger King (BK). Tim Hortons restaurants are quick service restaurants with a menu that includes blend coffee, tea, espresso-based hot and cold specialty drinks, baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps and soups, among others. Burger King restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other food items. The Company operates coffee roasting facilities in Hamilton, Ontario and Rochester, New York. The Company sells its raw materials and supplies, including coffee, sugar, paper goods and other restaurant supplies to Tim Hortons restaurants.
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