Restaurant Brands International (Restaurant Brands International) Intrinsic Value: DCF (Dividends Based) : $35.64 (As of Apr. 27, 2024)

View and export this data going back to 2014. Start your Free Trial

What is Restaurant Brands International Intrinsic Value: DCF (Dividends Based)?

As of today (2024-04-27), Restaurant Brands International's intrinsic value calculated from the Discounted Dividend model is $35.64.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Restaurant Brands International's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Restaurant Brands International is -107.13%.

The historical rank and industry rank for Restaurant Brands International's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

QSR's Price-to-DCF (Dividends Based) is not ranked ^*
in the Restaurants industry.
Industry Median: 1.68
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Restaurant Brands International Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Restaurant Brands International's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Restaurant Brands International Intrinsic Value: DCF (Dividends Based) Chart

Restaurant Brands International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Intrinsic Value: DCF (Dividends Based)

Get a 7-Day Free Trial

Restaurant Brands International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Restaurant Brands International's Intrinsic Value: DCF (Dividends Based)

For the Restaurants subindustry, Restaurant Brands International's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Restaurant Brands International's Price-to-DCF (Dividends Based) Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Restaurant Brands International's Price-to-DCF (Dividends Based) falls into.

Restaurant Brands International Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 10%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 3.44%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Restaurant Brands International's average Dividend Growth Rate in the past 5 years was 3.90%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $2.8548.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Restaurant Brands International's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.1) = 0.95454545454545
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.1) = 0.94545454545455

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

2.8548

12.485

35.64

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(35.64	-	73.82)	/	35.64
	=	-107.13 %

Restaurant Brands International (NYSE:QSR) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Restaurant Brands International Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of Restaurant Brands International's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Restaurant Brands International (Restaurant Brands International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Restaurant Brands International Inc (NYSE:QSR) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

QSR:Mexico 0R6:Germany 0R6:Germany QSR:Canada

Address

130 King Street West, Suite 300, P.O. Box 339, Toronto, ON, CAN, M5X 1E1

Website

https://www.rbi.com

Restaurant Brands International is one of the largest restaurant companies in the world, with approximately $39 billion in 2022 systemwide sales across a footprint that spanned nearly 30,000 restaurants and more than 100 countries. The firm generates revenue primarily from retail sales at its company-owned restaurants, royalty fees and lease income from franchised stores, and from its Tim Hortons supply chain operations. Formed in 2014 after 3G Capital's acquisition of Tim Hortons International, the Restaurant Brands portfolio now includes Burger King (19,000 units), Tim Hortons (5,600 units), Popeyes Louisiana Kitchen (4,100 units) and Firehouse Subs (1,250 units) as of year-end 2022.

Executives

Axel Mr Schwan	officer: Pres., Tim Hortons Americas	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Jeffrey Housman	officer: See Remarks	C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Joshua Kobza	officer: Chief Financial Officer	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
David Chan Shear	officer: President, International	C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Thomas Benjamin Curtis	officer: See Remarks	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Duncan Fulton	officer: Chief Corporate Officer	C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Jacqueline Friesner	officer: See Remarks	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Jill Granat	officer: See Remarks	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Matthew Dunnigan	officer: CFO	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Sami A. Siddiqui	officer: Brand Pres., Popeyes, Americas	C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
J Patrick Doyle	officer: Executive Chairman	8701 COLLINS AVENUE UNIT 1202, MIAMI BEACH FL 33154
Jordana Fribourg	director	C/O RESTAURANT BRANDS INTERNATIONAL INC., 5707 BLUE LAGOON DRIVE, MIAMI FL 33126
Ali Hedayat	director	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Jose E. Cil	officer: See Remarks	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Cristina Farjallat	director	130 KING STREET WEST, SUITE 300, TORONTO Z4 M5X 1E1