Restaurant Brands International Inc.

Section 1: Company Overview and Fundamental Insights

Company Overview:

Restaurant Brands International Inc. (TSX: QSR) is one of the world's largest quick service restaurant companies with nearly $45 billion in annual system-wide sales and over 32,000 restaurants in more than 120 countries and territories. RBI owns four of the world's most prominent and iconic quick service restaurant brands – TIM HORTONS, BURGER KING, POPEYES, and FIREHOUSE SUBS. These independently operated brands have been serving their respective guests, franchisees and communities for decades.

Kalkine’s Investor Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~42.81% of the total shareholding. Capital World Investors and Pershing Square Capital Management, L.P. hold a maximum stake in the company at ~­­­13.36% and ~7.08%, respectively.

1.4 Key Metrics:

The company's financials improved in FY 2024, and it also posted industry-leading margins, which is a significant benefit. Furthermore, the business recorded a significant increase in its operational KPIs and cash from operating activities, leveraging on its strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of the company’s recent activities, such as an announcement regarding its upcoming financial results and a freshly acquired stakes.

2.2 Insights on FY 2024 Financial Performance:

Section 3: Key Risks, Company Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed a downside of ~4.00% and an upside of ~1.10% over the last 1 week and 1 month respectively. Moreover, the stock is trading below the average 52-week high price of CAD 108.44 and 52-week low price of CAD 86.06, providing an opportunity to accumulate the stock.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

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 March 28, 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 as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Note 5: Kalkine 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 25-30 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.

Technical Indicators Defined: -

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.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavorable movement in the stock prices.