QSR.TO WACC - Weighted Average Cost of Capital

The WACC of Restaurant Brands International Inc (QSR.TO) is 7.5%.

The Cost of Equity of Restaurant Brands International Inc (QSR.TO) is 9.30%.

The Cost of Debt of Restaurant Brands International Inc (QSR.TO) is 4.60%.

	Range	Selected
Cost of equity	7.90% - 10.70%	9.30%
Tax rate	13.20% - 18.10%	15.65%
Cost of debt	4.60% - 4.60%	4.60%
WACC	6.5% - 8.4%	7.5%

WACC

QSR.TO WACC calculation

Category	Low	High

Long-term bond rate	1.9%	2.4%
Equity market risk premium	5.2%	6.2%
Adjusted beta	1.15	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.70%

Tax rate	13.20%	18.10%
Debt/Equity ratio	0.51	0.51
Cost of debt	4.60%	4.60%

After-tax WACC	6.5%	8.4%


Selected WACC	7.5%

QSR.TO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for QSR.TO:

cost_of_equity (9.30%) = risk_free_rate (2.15%) + equity_risk_premium (5.70%) * adjusted_beta (1.15) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.