DCF Tool

QSR

Restaurant Brands International Inc – Food Service Contractors
Restaurant Brands International Inc. ('RBI') is one of the world's largest quick service restaurant companies with approximately $31 billion in annual system-wide sales and 27,000 restaurants in more than 100 countries and U.S. territories. RBI owns three of the world's most prominent and iconic quick service restaurant brands - TIM HORTONS®, BURGER KING®, and POPEYES®. These independently operated brands have been serving their respective guests, franchisees and communities for over 45 years.
Analysis Results
Intrinsic Value $145.42
Latest Price $60.82
Relative Value 58% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 2.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.68 1.59
2023 1.73 1.55
2024 1.78 1.51
2025 1.83 1.47
2026 1.89 1.43
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 51.6 billion. This corresponds to a present value of 37.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.55 billion. Adding in the terminal value gives a total present value of 44.5 billion.

There are presently 306.0 million outstanding shares, so the intrinsic value per share is 145.42.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,816,000,000
Current Cash 1,087,000,000
Current Liabilities 1,878,000,000
Current Debt 96,000,000
Non-Cash Working Capital (NCWC) -1,053,000,000
Change in NCWC -267,000,000
EBIT 1,886,000,000
Tax Provision 110,000,000
Depreciation and Amortization 201,000,000
Capital Expenditure -106,000,000
Unlevered Free Cash Flow 1,561,791,636
Current Assets 2,264,000,000
Current Cash 1,560,000,000
Current Liabilities 1,601,000,000
Current Debt 111,000,000
Non-Cash Working Capital (NCWC) -786,000,000
Change in NCWC 153,000,000
EBIT 1,527,000,000
Tax Provision 66,000,000
Depreciation and Amortization 189,000,000
Capital Expenditure -117,000,000
Unlevered Free Cash Flow 1,628,492,647
Current Assets 2,196,000,000
Current Cash 1,533,000,000
Current Liabilities 1,703,000,000
Current Debt 101,000,000
Non-Cash Working Capital (NCWC) -939,000,000
Change in NCWC -209,000,000
EBIT 1,997,000,000
Tax Provision 341,000,000
Depreciation and Amortization 185,000,000
Capital Expenditure -62,000,000
Unlevered Free Cash Flow 1,442,007,575
Current Assets 1,500,000,000
Current Cash 913,000,000
Current Liabilities 1,408,000,000
Current Debt 91,000,000
Non-Cash Working Capital (NCWC) -730,000,000
Change in NCWC 170,600,000
EBIT 1,925,000,000
Tax Provision 238,000,000
Depreciation and Amortization 180,000,000
Capital Expenditure -86,000,000
Unlevered Free Cash Flow 1,858,087,698
Current Assets 1,749,600,000
Current Cash 1,073,400,000
Current Liabilities 1,655,000,000
Current Debt 78,200,000
Non-Cash Working Capital (NCWC) -900,600,000
Change in NCWC -420,400,000
EBIT 1,845,100,000
Tax Provision -133,600,000
Depreciation and Amortization 181,100,000
Capital Expenditure -36,700,000
Unlevered Free Cash Flow 1,569,100,000
Current Assets 2,097,000,000
Current Cash 1,460,400,000
Current Liabilities 1,210,700,000
Current Debt 93,900,000
Non-Cash Working Capital (NCWC) -480,200,000
Change in NCWC -27,000,000
EBIT 1,666,000,000
Tax Provision 243,900,000
Depreciation and Amortization 172,100,000
Capital Expenditure -33,700,000
Unlevered Free Cash Flow 1,438,729,054
Current Assets 1,369,500,000
Current Cash 757,800,000
Current Liabilities 1,121,000,000
Current Debt 56,100,000
Non-Cash Working Capital (NCWC) -453,200,000
Change in NCWC -510,800,000
EBIT 1,297,700,000
Tax Provision 162,200,000
Depreciation and Amortization 182,000,000
Capital Expenditure -115,300,000
Unlevered Free Cash Flow 541,258,495

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