Restaurant Brands Gross Profit vs. Revenue

QSR Stock  USD 69.80  0.20  0.29%   
Based on Restaurant Brands' profitability indicators, Restaurant Brands International may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Restaurant Brands' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2003-09-30
Previous Quarter
1.1 B
Current Value
1.6 B
Quarterly Volatility
388.3 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of 12/12/2024, Price To Sales Ratio is likely to grow to 5.20. Also, Days Sales Outstanding is likely to grow to 50.12. At this time, Restaurant Brands' Income Before Tax is relatively stable compared to the past year. As of 12/12/2024, Net Income Applicable To Common Shares is likely to grow to about 1.2 B, while Operating Income is likely to drop slightly above 1.1 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.560.399
Significantly Up
Very volatile
Net Profit Margin0.130.1695
Way Down
Slightly volatile
Operating Profit Margin0.260.2921
Fairly Down
Pretty Stable
Return On Assets0.0290.0509
Way Down
Slightly volatile
Return On Equity0.230.4152
Way Down
Slightly volatile
For Restaurant Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Restaurant Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Restaurant Brands International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Restaurant Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Restaurant Brands International over time as well as its relative position and ranking within its peers.
  

Restaurant Brands' Revenue Breakdown by Earning Segment

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Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Restaurant Brands. If investors know Restaurant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Restaurant Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Dividend Share
2.29
Earnings Share
3.99
Revenue Per Share
25.115
Quarterly Revenue Growth
0.247
The market value of Restaurant Brands is measured differently than its book value, which is the value of Restaurant that is recorded on the company's balance sheet. Investors also form their own opinion of Restaurant Brands' value that differs from its market value or its book value, called intrinsic value, which is Restaurant Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Restaurant Brands' market value can be influenced by many factors that don't directly affect Restaurant Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Restaurant Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Restaurant Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Restaurant Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Restaurant Brands Revenue vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Restaurant Brands's current stock value. Our valuation model uses many indicators to compare Restaurant Brands value to that of its competitors to determine the firm's financial worth.
Restaurant Brands International is rated third in gross profit category among its peers. It is rated fifth in revenue category among its peers totaling about  2.70  of Revenue per Gross Profit. At this time, Restaurant Brands' Gross Profit is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Restaurant Brands by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Restaurant Revenue vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Restaurant Brands

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.6 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Restaurant Brands

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
7.02 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Restaurant Revenue vs Competition

Restaurant Brands International is rated fifth in revenue category among its peers. Market size based on revenue of Consumer Discretionary industry is at this time estimated at about 62.57 Billion. Restaurant Brands retains roughly 7.02 Billion in revenue claiming about 11% of stocks in Consumer Discretionary industry.

Restaurant Brands Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Restaurant Brands, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Restaurant Brands will eventually generate negative long term returns. The profitability progress is the general direction of Restaurant Brands' change in net profit over the period of time. It can combine multiple indicators of Restaurant Brands, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-706 M-741.3 M
Operating Income2.1 B1.1 B
Income Before Tax1.5 B1.5 B
Net Income Applicable To Common Shares1.2 B1.2 B
Net Income1.2 B1.3 B
Income Tax Expense-265 M-251.8 M
Total Other Income Expense Net-598 M-568.1 M
Net Income From Continuing Ops1.3 B1.1 B
Non Operating Income Net Other-12.7 M-13.3 M
Interest Income33 M31.4 M
Net Interest Income-574 M-602.7 M
Change To Netincome144.9 M84.6 M
Net Income Per Share 3.81  1.95 
Income Quality 1.09  1.30 
Net Income Per E B T 0.82  0.50 

Restaurant Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Restaurant Brands. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Restaurant Brands position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Restaurant Brands' important profitability drivers and their relationship over time.

Use Restaurant Brands in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Restaurant Brands position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Restaurant Brands will appreciate offsetting losses from the drop in the long position's value.

Restaurant Brands Pair Trading

Restaurant Brands International Pair Trading Analysis

The ability to find closely correlated positions to Restaurant Brands could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Restaurant Brands when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Restaurant Brands - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Restaurant Brands International to buy it.
The correlation of Restaurant Brands is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Restaurant Brands moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Restaurant Brands moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Restaurant Brands can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Restaurant Brands position

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Robots And Drones
Robots And Drones Theme
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Robots And Drones Theme or any other thematic opportunities.
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Additional Tools for Restaurant Stock Analysis

When running Restaurant Brands' price analysis, check to measure Restaurant Brands' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Restaurant Brands is operating at the current time. Most of Restaurant Brands' value examination focuses on studying past and present price action to predict the probability of Restaurant Brands' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Restaurant Brands' price. Additionally, you may evaluate how the addition of Restaurant Brands to your portfolios can decrease your overall portfolio volatility.