Restaurant Brands International (NYSE:QSR) is making a major move in China, teaming up with CPE to triple the number of Burger King outlets there by 2035. CPE is supporting the expansion with a $350 million investment.
See our latest analysis for Restaurant Brands International.
Over the past year, Restaurant Brands International has delivered a 5.9% total shareholder return, with momentum building lately as the share price climbed over 11% in the last 90 days. Recent joint ventures, a multi-year investment programme, and a successful equity offering all highlight the company’s focus on global growth and brand reinvestment.
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With international aspirations and multi-year investments driving the headlines, the real question for investors is whether Restaurant Brands International is trading below its intrinsic value or if the market has already accounted for its growth ambitions.
With a narrative fair value of $78.25 set against the last closing price of $70.51, the story builds on investor optimism over future earnings and margins. Analysts justify this valuation by focusing on the company’s unique catalysts for growth and profitability across global markets.
Rapid international expansion, particularly through the franchise-led model in markets such as China, India, Turkey, Japan, and Brazil, is driving double-digit unit and system-wide sales growth. This directly supports recurring, capital-light revenue streams and higher long-term earnings visibility. Acceleration in menu innovation (notably at Tim Hortons, Burger King, and across international markets) and the revitalization of core brands (e.g., new product platforms, premium and value menu balance, high-profile partnerships, ongoing Burger King “Reclaim the Flame” initiatives) have led to consistent increases in same-store sales and customer traffic. These are likely to fuel continued top-line growth and margin expansion.
How does a legacy fast-food brand secure a premium narrative in today’s market? Surprisingly ambitious growth projections and a fresh approach to margins are fueling this valuation. Curious which levers could push the company into a higher gear? The narrative reveals the financial engine behind this bullish price target.
Result: Fair Value of $78.25 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
