Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Restaurant Brands International

(

QSR

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Restaurant Brands International as such a stock due to the following factors:

  • QSR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.0 million.
  • QSR has traded 748,156 shares today.
  • QSR is trading at 11.46 times the normal volume for the stock at this time of day.
  • QSR is trading at a new high 6.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on QSR:

Restaurant Brands International Inc. owns and operates quick service restaurants under the Burger King and Tim Hortons brand names. As of February 17, 2015, it franchised or owned 19,043 restaurants in approximately 100 countries and U.S. territories worldwide. The stock currently has a dividend yield of 1%. Currently there are 3 analysts that rate Restaurant Brands International a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Restaurant Brands International has been 1.1 million shares per day over the past 30 days. Restaurant Brands International has a market cap of $7.9 billion and is part of the services sector and leisure industry. Shares are up 2.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Restaurant Brands International as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:

  • QSR's very impressive revenue growth greatly exceeded the industry average of 5.0%. Since the same quarter one year prior, revenues leaped by 286.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, QSR's share price has jumped by 49.62%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • 44.71% is the gross profit margin for RESTAURANT BRANDS INTL INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.50% trails the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, RESTAURANT BRANDS INTL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RESTAURANT BRANDS INTL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RESTAURANT BRANDS INTL INC swung to a loss, reporting -$1.30 versus $0.66 in the prior year.

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