Restaurant Brands International Limited Partnership (RSTRF)

Price$75.00Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe units look fairly priced because cash returns are solid, but debt and a stale quote limit upside.

Reported facts: RSTRF units are designed to carry economics substantially equivalent to RBI common shares and can be exchanged one-for-one. About 455 million common-equivalent shares were outstanding in late July. At the observed OTC level, that implies roughly $34 billion of equity value; adding June net debt of about $12.2 billion puts total business value near $46 billion, around 16 times trailing earnings before interest, taxes, depreciation and amortization. Trailing free cash flow, meaning operating cash after capital spending, was about $1.63 billion, a yield under 5%. My inference: that supports Fair-priced, not clearly cheap.

Big pictureSales and operating cash are rising, yet recent profit growth overstates the underlying improvement.

Revenue rose from $7.0 billion in 2023 to $9.4 billion in 2025, while operating cash flow increased from $1.32 billion to $1.71 billion. The latest four quarters through June produced about $1.90 billion of operating cash flow and $1.63 billion after capital spending. Reported net income also jumped in early 2026, but unusual tax benefits and favorable currency remeasurement lifted that figure. Consumer demand remains uneven: Burger King U.S. comparable sales, meaning sales at established restaurants versus a year earlier, rose 8.5% in the second quarter, while Tim Hortons Canada was nearly flat and Popeyes U.S. fell 5.2%.

Business strengthA mostly franchised model supports durable cash flow, while leverage remains the main balance-sheet weakness.

More than 95% of restaurants were franchised at year-end 2025, so much of the business earns royalties instead of bearing store labor and food costs directly. That supports durable cash generation across four brands and many countries. The balance sheet is the counterweight: June net debt was $12.2 billion, roughly 4.2 times trailing earnings before interest, taxes, depreciation and amortization, and first-half net interest expense was $247 million. Dividends used about 70% of trailing free cash flow. Pay tied to shares was $151 million in 2025, while $171 million of first-half buybacks helped contain dilution but competed with debt reduction.

What could change the storyBurger King momentum and international growth could lift value, but Popeyes weakness or slower refranchising would hurt.

The bull case requires Burger King’s U.S. recovery and international expansion to lift royalties while refranchising reduces company-run restaurant spending. Management targets at least 3% comparable-sales growth, at least 8% yearly growth in adjusted operating income, a measure removing selected special items, and more than $2 billion of annual free cash flow by 2028. At today’s valuation, that future cash level would still yield only about 6% if the share count stays similar. The bear case: continued Popeyes declines, weak Tim Hortons growth, or slower refranchising could keep leverage high and make the current valuation harder to justify.

AI: News

Second-quarter sales splitBurger King surged while Tim Hortons stalled, leaving investors impressed by growth but wary of uneven brand health.

On August 6, Burger King U.S. comparable sales rose 8.5%, versus about 3.5% expected, and global comparable sales rose 3.8%. Tim Hortons Canada grew only 0.1%, while Popeyes U.S. fell 5.2%. Adjusted diluted earnings reached $1.07, up from $0.94. Reuters reported the U.S.-listed shares were down about 3% in early trading, so the market reaction appears to reflect concern that strong Burger King results did not fully offset weakness elsewhere.

First-quarter Tim Hortons missStrong Burger King sales could not offset Tim Hortons softness, and the shares fell after the mixed quarter.

On May 6, Burger King U.S. comparable sales rose 5.8%, beating an analyst estimate near 3%, while Tim Hortons Canada was weaker than expected. Reuters reported the shares dropped about 4% and highlighted soft Canadian consumer spending and rising beef costs; beef represented roughly one quarter of the company’s food basket. The timing supports a link to the earnings release, but the exact share-price move cannot be assigned to one operating factor alone.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012
Revenue	$9.43B	$8.41B	$7.02B	$6.50B	$5.74B	$4.97B	$5.60B	$5.36B	$4.58B	$4.15B	$4.05B	$1.20B	$1.15B	$1.97B
Gross profit	$3.19B	$3.02B	$4.59B	$4.19B	$3.85B	$3.36B	$3.79B	$3.54B	$2.73B	$2.42B	$2.24B	$826.5M	$743.1M	$727.4M
Gross margin	33.85%	35.97%	65.32%	64.46%	67.07%	67.59%	67.64%	66.06%	59.57%	58.35%	55.35%	68.94%	64.83%	36.91%
Operating expenses	$7.23B	$5.99B	$4.97B	$4.61B	$3.86B	$3.55B	$3.60B	$3.44B	$2.84B	$2.48B	$2.86B	$1.02B	$624.1M	$1.55B
Operating income	$2.20B	$2.42B	$2.05B	$1.90B	$1.88B	$1.42B	$2.01B	$1.92B	$1.74B	$1.67B	$1.19B	$181.1M	$522.2M	$417.7M
Operating margin	23.34%	28.78%	29.21%	29.18%	32.74%	28.62%	35.82%	35.78%	37.92%	40.21%	29.42%	15.11%	45.56%	21.19%
EBITDA	$2.50B	$2.68B	$2.24B	$2.09B	$2.08B	$1.61B	$2.19B	$2.10B	$1.92B	$1.84B	$1.37B	$249.9M	$588.0M	$531.9M
EBITDA margin	26.53%	31.92%	31.93%	32.10%	36.24%	32.43%	39.12%	39.15%	41.89%	44.36%	33.91%	20.85%	51.30%	26.99%
Net income	$1.07B	$1.45B	$1.72B	$1.48B	$1.25B	$750.0M	$1.11B	$1.14B	$1.24B	$956.0M	$511.7M	−$277.2M	$233.7M	$117.7M
Net profit margin	11.39%	17.19%	24.47%	22.78%	21.83%	15.10%	19.83%	21.36%	26.99%	23.06%	12.63%	−23.12%	20.39%	5.97%
Basic EPSper basic share	$2.38	$3.21	$3.82	$3.28	—	—	—	—	—	—	—	-$0.20	$0.67	—
Diluted EPSper diluted share	$2.38	$3.21	$3.76	$3.28	—	—	—	—	—	—	—	-$0.20	$0.65	—