Zacks Investment Research Upgrades Restaurant Brands International Inc. (QSR) to “Buy”
Restaurant Brands International Inc. (NYSE:QSR) (TSE:QSR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The firm presently has a $71.00 target price on the restaurant operator’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 9.47% from the company’s previous close.
According to Zacks, “Restaurant Brands shares have widely outpaced its industry over the past year. Going forward, various sales-boosting initiatives like improving services, reimaging restaurants, menu innovation along with continued expansion should drive the top line. In fact, the company believes that there is opportunity to grow both the Tim Hortons and Burger King brands across the world. However, rising costs along with negative currency translation might dent the company’s profitability, while a soft consumer spending environment could keep comps under pressure. Nevertheless, moving ahead, the company aims to continue focusing on guest satisfaction and franchisee profitability, which it believes will drive long-term growth of brands. The acquisition of Popeye’s also bodes well as it adds a solid brand to its portfolio, which should further ramp up unit growth and aid in reducing costs”
A number of other analysts have also recently weighed in on the stock. CIBC raised shares of Restaurant Brands International from a “market perform” rating to an “outperform” rating and set a $70.00 price objective on the stock in a report on Wednesday, June 14th. Nomura started coverage on shares of Restaurant Brands International in a report on Wednesday, July 12th. They issued a “buy” rating and a $73.00 price objective on the stock. Piper Jaffray Companies reaffirmed an “overweight” rating and issued a $66.00 price objective on shares of Restaurant Brands International in a report on Tuesday, June 6th. Credit Suisse Group raised shares of Restaurant Brands International from a “neutral” rating to an “outperform” rating and increased their price objective for the stock from $60.00 to $74.00 in a report on Thursday, September 7th. Finally, Royal Bank of Canada reaffirmed a “buy” rating and issued a $69.00 price objective on shares of Restaurant Brands International in a report on Monday, September 11th. Four investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. Restaurant Brands International has a consensus rating of “Buy” and a consensus target price of $65.56.
Shares of Restaurant Brands International (NYSE:QSR) opened at 64.86 on Monday. Restaurant Brands International has a one year low of $42.35 and a one year high of $65.20. The stock has a 50 day moving average of $61.50 and a 200 day moving average of $59.31. The stock has a market cap of $15.32 billion, a P/E ratio of 45.39 and a beta of 1.77.
Restaurant Brands International (NYSE:QSR) (TSE:QSR) last released its quarterly earnings data on Wednesday, August 2nd. The restaurant operator reported $0.51 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.45 by $0.06. Restaurant Brands International had a net margin of 12.66% and a return on equity of 22.71%. The business had revenue of $1.13 billion for the quarter, compared to analysts’ expectations of $1.14 billion. During the same quarter last year, the company earned $0.41 EPS. The company’s revenue for the quarter was up 8.9% compared to the same quarter last year. Equities analysts expect that Restaurant Brands International will post $1.89 EPS for the current fiscal year.
Restaurant Brands International declared that its board has authorized a stock buyback plan on Wednesday, August 2nd that allows the company to buyback $300.00 million in shares. This buyback authorization allows the restaurant operator to buy up to 2.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.
In other Restaurant Brands International news, Director Ali Hedayat acquired 5,000 shares of Restaurant Brands International stock in a transaction dated Friday, August 4th. The stock was bought at an average price of $61.32 per share, for a total transaction of $306,600.00. Following the transaction, the director now owns 25,966 shares in the company, valued at approximately $1,592,235.12. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 4.20% of the company’s stock.
Several large investors have recently bought and sold shares of QSR. Westpac Banking Corp boosted its position in shares of Restaurant Brands International by 1,037.1% during the 1st quarter. Westpac Banking Corp now owns 1,933 shares of the restaurant operator’s stock valued at $108,000 after purchasing an additional 1,763 shares in the last quarter. BNP Paribas Arbitrage SA boosted its position in shares of Restaurant Brands International by 10.2% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 2,165 shares of the restaurant operator’s stock valued at $135,000 after purchasing an additional 200 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in shares of Restaurant Brands International by 10.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,228 shares of the restaurant operator’s stock valued at $179,000 after purchasing an additional 306 shares in the last quarter. Commonwealth Bank of Australia boosted its position in shares of Restaurant Brands International by 9.0% during the 2nd quarter. Commonwealth Bank of Australia now owns 3,167 shares of the restaurant operator’s stock valued at $197,000 after purchasing an additional 261 shares in the last quarter. Finally, Cigna Investments Inc. New bought a new position in shares of Restaurant Brands International during the 2nd quarter valued at about $211,000. Institutional investors own 76.64% of the company’s stock.
Restaurant Brands International Company Profile
Restaurant Brands International Inc is a quick service restaurant (QSR) company. The Company had over 20,000 restaurants in more than 100 countries and the United States territories, as of December 31, 2016. It operates through two segments: Tim Hortons (TH) and Burger King (BK). Tim Hortons restaurants are quick service restaurants with a menu that includes blend coffee, tea, espresso-based hot and cold specialty drinks, baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps and soups, among others.
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