Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 8 Sep, 25 | QSR | Buy | CAD 87.36 | CAD 92.1 | CAD 93.0 | 23 days | Closed |
5.51%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through six segments: Tim Hortons, Burger King, Popeyes Louisiana Kitchen, Firehouse Subs, International, and Restaurant Holdings. The company owns and franchises Tim Hortons, a coffee and baked good restaurant chain that offers beverages, sandwiches, wraps, flatbread pizzas, and others; Burger King, a quick service hamburger restaurant chain that offers flame-grilled hamburgers, chicken, and other sandwiches; Popeyes, a quick service chicken concept that offers a Louisiana style menu, including fried bone-in chicken, chicken sandwiches, chicken tenders, wings, fried shrimp, and regional items; and Firehouse Subs, which offers subs with meats and cheese, as well as chopped salads, chili, soups, soft drinks, and other sides. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Miami, Florida.
Higher Net Margin: 11.0% in Q2 2025 vs 7.3% of Industry Median
Higher Gross Margin: 54.9% in Q2 2025 vs 50.8% of Industry Median
Higher Average A/R Days: 27.5 Days in Q2 2025 vs 16.1 Days of Industry Median
Higher Debt to Equity Ratio: 4.20x in Q2 2025 vs 0.52x of Industry Median
Customer disengagement, Trade tariffs, Labor shortages, Technology risks, Interest rates, Inflation, Competition, etc.
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 87.36 | 82.45 | 92.1 | 93.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Expanding Sales: The company's sales for Q2 2025 increased by 15.8% to USD 2,410 million, compared to USD 2,080 million in the corresponding period of the prior fiscal year. This increase was driven by growth in the total number of stores over the past 12 months and increased System-Wide Sales.
Industry Beating Margins: In Q2 2025, the company delivered notable margin improvements, with its gross margin reaching 54.9%, surpassing the industry median of 50.9%. Operating margin rose to 20.0% Vs 13.4% of industry median, while net margin climbed to 11.0%, well above the industry median of 6.2%. This decent performance was driven by healthy contributions from all reporting segments.
Elevated Cash Flows: Cash generated from operating activities totaled USD 567 million for the six months ended June 30, 2025, up from USD 482 million in the same period last year. This increase was mainly due to lower cash outflows for working capital and reduced interest payments, partially offset by higher income tax payments. Free cash flow also improved, rising to USD 465 million from USD 413 million in the prior corresponding period.
Considering the expected valuation upside, decent growth in sales, expanding restaurant counts, higher free cash flows, positive guidance, current trading levels and key business risks, a ‘Buy’ recommendation has been given on the stock at the last closing price of CAD 87.36, as on September 5, 2025
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Restaurants
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| QSR Restaurant Brands International Inc |
-0.44 0.48% | 91.15 | 24.27 | 12.32 | 4.67 | 7.00 | 4.14 | 15.17 |
| SBUX Starbucks CDR (CAD Hedged) |
0.30 1.18% | 25.80 | - | - | - | - | ||
| CMGS Chipotle CDR (CAD Hedged) |
0.08 0.53% | 15.24 | - | - | - | - | ||
| MTY MTY Food Group Inc |
-0.875 2.05% | 41.73 | 27.25 | 9.26 | 0.79 | 1.13 | 1.71 | 11.52 |
| AW A W FOOD SERVICES OF CANADA INC |
0.01 0.03% | 36.72 | 24.83 | - | 3.02 | 4.12 | 6.06 | 14.74 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on September 8, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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