Restaurant Brands International Inc (QSR · NYSE)

Restaurant Brands International shares have pulled back sharply, down 7.4% over the past month and trading with an RSI of 23, leaving the stock 11.4% below its 52-week high at $71.64 despite beating estimates in all four of the last quarters. Fundamentals remain solid: Q2 revenue of $2.52B grew 4.6% year over year, net income of $507.0M more than doubled from the prior quarter's $338.0M, and the company generated $479.0M in free cash flow against $51.0M of capex. Leverage is elevated at 5.4x debt/EBITDA on $15.65B of total debt, though a 34.8% ROE and 27.7% operating margin support the franchise model. Sentiment is mixed — Argus downgraded to Hold from Buy citing strength at Burger King offsetting weakness at Tim Hortons and Popeyes — while the analyst consensus sits at Moderate Buy with a $84.04 average target versus the current $71.64.