We ran a stock scan for earnings growth and Restaurant Brands International Limited Partnership (TSE:QSP.UN) passed it easily.

The excitement of investing in a company that can turn its fortunes around is a big draw for some speculators, so even companies that have no revenue, no profit, and a long track record can find investors. Unfortunately, the likelihood of these high-risk investments ever paying off is often very low, and many investors have to pay a high price to learn their lesson. A loss-making company has yet to prove itself with profits, and at some point the inflow of outside capital may dry up.

If this type of company is not your style, but you like companies that generate revenue and even profits, then you might be interested in Restaurant Brands International Limited Partnership (TSE:QSP.UN). While this does not mean that the company is the best investment opportunity ever, profitability is a key component of business success.

Check out our latest analysis for Restaurant Brands International Limited Partnership

How quickly does Restaurant Brands International Limited Partnership grow earnings per share?

If a company can grow its earnings per share (EPS) long enough, its share price should eventually follow. Therefore, it makes sense for sophisticated investors to pay close attention to earnings per share when analyzing investments. It is certainly pleasing to see that Restaurant Brands International Limited Partnership has managed to grow earnings per share by 24% per year over three years. If the company can sustain this growth, we expect shareholders to be pleased.

It’s often helpful to look at earnings before interest and tax (EBIT) margins and revenue growth to get another sense of the quality of a company’s growth. Restaurant Brands International Limited Partnership was able to maintain stable EBIT margins last year while growing revenue by 10% to US$7.5 billion. That’s really positive.

The chart below shows how the company’s profit and revenue have changed over time. Click on the chart to see the actual numbers.

Although profitability is the driving force behind upward trends, prudent investors always check the balance sheet.

Are Restaurant Brands International Limited Partnership insiders aligned with all shareholders?

Since Restaurant Brands International Limited Partnership has a market capitalization of CA$33 billion, we wouldn’t expect insiders to own a large portion of the shares. But thanks to their investment in the company, it’s good to see that there are still incentives to align their actions with shareholders. We note that their impressive stake in the company is worth US$380 million. Holders should find this level of insider involvement very encouraging, as it ensures that the company’s leaders also see their success or failure reflected in the stock.

Should you add Restaurant Brands International Limited Partnership to your watchlist?

If you believe that share price follows earnings per share, then you should definitely take a closer look at Restaurant Brands International Limited Partnership’s strong EPS growth. Moreover, the high level of insider ownership is impressive and suggests that management values ​​EPS growth and has confidence in Restaurant Brands International Limited Partnership’s continued strength. The bottom line is that solid EPS growth and company insiders aligned with shareholders point to a company worthy of further investigation. However, it is still necessary to consider the ever-present specter of investment risk. We have identified 1 warning signal with Restaurant Brands International Limited Partnership, and understanding this should be part of your investment process.

There is always the possibility of buying shares that are not increasing yields and not Insiders have been buying shares. But for those who consider these important metrics, we recommend looking at companies that Do have these features. You can access a customized list of Canadian companies whose growth is supported by significant insider ownership.

Please note that the insider transactions discussed in this article are reportable transactions in the respective jurisdiction.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.