--- title: "Is Restaurant Brands International (QSR) Pricing Reflect Its Cash Flow Forecasts And Recent Share Performance" type: "News" locale: "en" url: "https://longbridge.com/en/news/279126575.md" description: "Restaurant Brands International (QSR) is currently priced at approximately $72.65, showing a 1.8% decline over the past week but a 7.1% gain year-to-date. A Discounted Cash Flow (DCF) analysis suggests the stock is undervalued by 13.5%, with an intrinsic value of $83.99 per share. Additionally, the company's P/E ratio of 27.9x is below the industry average of 21.5x, indicating potential undervaluation. Investors are encouraged to consider their own narratives and assumptions regarding the company's future performance." datetime: "2026-03-14T14:40:26.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279126575.md) - [en](https://longbridge.com/en/news/279126575.md) - [zh-HK](https://longbridge.com/zh-HK/news/279126575.md) --- # Is Restaurant Brands International (QSR) Pricing Reflect Its Cash Flow Forecasts And Recent Share Performance - If you are wondering whether Restaurant Brands International at around US$72.65 is offering fair value or a potential mismatch between price and business quality, you are not alone. - The stock shows a 1.8% decline over the last 7 days, a 2.8% gain over 30 days, and returns of 7.1% year to date, 14.1% over 1 year, 31.9% over 3 years, and 33.3% over 5 years, which may prompt questions about how much of the story is already reflected in the share price. - Recent coverage has focused on Restaurant Brands International's role as the parent of several global quick service chains and its ongoing brand and store footprint investments. These factors help frame how investors think about its long term potential. This kind of news flow can influence how the market prices growth expectations and risk around the business over different time frames. - On our checks, Restaurant Brands International scores 2 out of 6 for value. This raises the question of what different valuation approaches actually say about the stock and whether there is an even better way to tie those numbers back to the real world business by the end of this article. Restaurant Brands International scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. ## Approach 1: Restaurant Brands International Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and then discounting those back to a present value. It is essentially asking what those future dollars are worth in today's terms. For Restaurant Brands International, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $1.34b. Analyst inputs and subsequent extrapolations suggest projected free cash flow of $2.54b by 2030, with a series of annual figures between 2026 and 2035 that are discounted back using the DCF framework. Pulling those projected and discounted cash flows together, the DCF output indicates an estimated intrinsic value of about $83.99 per share. Compared with a current share price around $72.65, this implies the stock is trading at roughly a 13.5% discount to that intrinsic estimate, which indicates that the shares appear undervalued on this model. **Result: UNDERVALUED** Our Discounted Cash Flow (DCF) analysis suggests Restaurant Brands International is undervalued by 13.5%. Track this in your watchlist or portfolio, or discover 48 more high quality undervalued stocks. QSR Discounted Cash Flow as at Mar 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Restaurant Brands International. ## Approach 2: Restaurant Brands International Price vs Earnings For a profitable company like Restaurant Brands International, the P/E ratio is a useful shorthand for how much investors are currently paying for each dollar of earnings. It naturally links the share price to the underlying profit stream, which is what ultimately supports long term returns. What counts as a "normal" or "fair" P/E depends on how the market views a company’s growth prospects and risk profile. Higher expected growth or lower perceived risk often lines up with a higher P/E, while slower growth or higher uncertainty usually points to a lower one. Restaurant Brands International currently trades on a P/E of about 27.9x, compared with a Hospitality industry average of roughly 21.5x and a peer average of about 24.2x. Simply Wall St’s Fair Ratio for the stock is 32.3x, which is a proprietary estimate of the P/E you might expect once factors like earnings growth, profit margins, industry, market cap and company specific risks are accounted for. Because the Fair Ratio adjusts for these fundamentals rather than relying only on simple peer or sector comparisons, it can be a more tailored yardstick. With a Fair Ratio of 32.3x versus the current 27.9x, the model suggests Restaurant Brands International may be trading below that fundamentals based benchmark. **Result: UNDERVALUED** NYSE:QSR P/E Ratio as at Mar 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies. ### Upgrade Your Decision Making: Choose your Restaurant Brands International Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your story about Restaurant Brands International linked directly to your own revenue, earnings and margin assumptions, a fair value, and a clear comparison to today’s price. They are all hosted on Simply Wall St’s Community page where millions of investors share views, update them automatically when fresh news or earnings arrive, and often land in very different places. For example, one investor might build a bullish Restaurant Brands International Narrative around China expansion, digital investment and higher margins that supports a fair value near the upper analyst price target of US$93.00. Another might stress cost inflation, execution risks and competitive pressure and land closer to the lower end near US$60.00. This gives you a practical range to consider when you are deciding how the current share price lines up with your own expectations. Do you think there's more to the story for Restaurant Brands International? Head over to our Community to see what others are saying! NYSE:QSR 1-Year Stock Price Chart _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. 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