vvincii we show the working

← Restaurant Brands International

The business behind the dividend

MeasureQSRMedianFormula
Return on equity29.6%11.7%Net income ÷ shareholders’ equity
Return on capital employed13.0%10.1%Operating income ÷ (equity + total debt)
Owner earnings$1.11bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$1.45bn$746.10mOperating cash flow − capital expenditure
Operating margin23.3%15.0%Operating income ÷ revenue
Net margin11.4%10.2%Net income ÷ revenue
Debt to equity3.65x0.79xTotal debt ÷ shareholders’ equity
Interest cover3.08x4.43xOperating income ÷ interest expense
Current ratio0.98x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.59x1.78xOperating cash flow ÷ net income

Not computed here: Long-term debt to working capital — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity29.6%46.5%59.9%59.3%56.0%34.6%44.6%71.0%55.5%56.2%55.5%
Return on capital employed13.0%14.4%13.0%12.3%12.3%9.7%14.0%14.2%12.3%16.4%13.0%
Operating margin23.3%28.8%29.2%29.2%32.7%28.6%35.8%35.8%37.9%40.2%29.2%
Net margin11.4%17.2%24.5%22.8%21.8%15.1%19.8%21.4%27.0%23.1%21.4%
Debt to equity3.65x4.39x4.51x5.18x5.80x5.76x4.75x7.38x5.32x4.98x4.98x
Current ratio0.98x0.97x1.01x0.97x0.97x1.41x1.29x1.07x1.06x1.73x1.01x
Cash conversion1.59x1.04x0.77x1.01x1.38x1.23x1.33x1.02x1.13x1.31x1.13x

How it compares in consumer discretionary

Among the 44 consumer discretionary companies here measured on free cash flow, Restaurant Brands International pays out less than 6 of them. The median for that group is 37.5%, against this company’s 76.5%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 48 in consumer discretionary →