On October 11, 2023, analysts at Morgan Stanley lowered their target price for Restaurant Brands International (NYSE:QSR) (TSE:QSR) from $78.00 to $75.00, according to a research report issued by Benzinga. The current rating on the restaurant operator’s stock is “equal weight.”
The adjusted price target by Morgan Stanley suggests a potential increase of 16.42% from the company’s previous closing price. Despite this adjustment, shares of QSR stock traded higher at $64.42 during mid-day trading on Wednesday. Approximately 381,878 shares were exchanged, compared to the average volume of 1,260,272.
Restaurant Brands International has experienced a 52-week low of $51.29 and a 52-week high of $78.30. The company boasts a market capitalization of $20.12 billion and has a PE ratio of 19.57 with a price-to-earnings-growth ratio of 2.13 and a beta value of 0.99.
With operations in Canada, the United States, and internationally, Restaurant Brands International Inc functions as a quick-service restaurant company with four distinct segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). Tim Hortons offers an array of donut/coffee/tea options along with specialty drinks such as espresso-based hot and cold beverages and fresh baked goods like donuts, bagels, muffins, cookies, pastries, grilled paninis along with classic sandwiches, wraps soups along with other food products.
In its most recent quarterly earnings release on August 8th, Restaurant Brands International reported earnings per share of $0.85 for the quarter – exceeding analysts’ consensus estimates by $0.09 ($0.76). The company also had a return on equity of 34.44% and a net margin of 15.03%. The revenue for the quarter was $1.78 billion compared to analysts’ expectations of $1.75 billion.
Looking ahead, research analysts predict that Restaurant Brands International will post earnings per share of 3.21 for the current year.
It is important for investors and stakeholders to take note of these developments as they assess the potential outlook and performance of Restaurant Brands International in the market.
Assessing Analyst Ratings and Hedge Fund Activity for Restaurant Brands International
Restaurant Brands International, the parent company of popular fast-food chains such as Burger King and Tim Hortons, has recently been the subject of a number of reports and analyses. These reports have explored various aspects of the company’s performance, including stock ratings, price objectives, and investments made by hedge funds.
In one notable report, Oppenheimer increased their price objective on shares of Restaurant Brands International from $81.00 to $83.00, while also giving the company an “outperform” rating. This positive outlook reflects their belief in the potential growth and profitability of the company.
Stephens, on the other hand, reiterated an “equal weight” rating for Restaurant Brands International and issued a $77.00 price objective for its shares. While this rating suggests a more neutral stance on the company’s performance, it is important to note that each analyst or firm may have their own methodology and criteria for assessing stocks.
StockNews.com recently started coverage on Restaurant Brands International by issuing a “hold” rating on the stock. The basis for this rating is not provided in the summary, but it indicates a more cautious approach towards investing in the company at this time.
Evercore ISI, a research-driven institutional brokerage firm, raised their target price on Restaurant Brands International from $87.00 to $88.00 and gave the company an “outperform” rating. This increase in target price suggests confidence in the future prospects of the company.
Contrarily, Citigroup dropped their price target from $85.00 to $83.00 and assigned a “neutral” rating for Restaurant Brands International. This downgrade implies a more balanced evaluation of the company’s potential.
Overall, out of all analysts who have rated Restaurant Brands International so far, one has given it a sell rating, eleven recommend holding onto it without making significant changes to holdings (hold rating), while fifteen have assigned it a buy rating. Based on data obtained from Bloomberg.com, we can observe that the average rating for the company is “Moderate Buy,” indicating a moderate level of optimism about its performance. The consensus target price for Restaurant Brands International is estimated to be $79.15.
In addition to analyst opinions and ratings, hedge funds have also shown interest in investing in Restaurant Brands International. As reported by Bloomberg.com, several hedge funds have recently bought and sold shares of the company. For instance, Bank of New York Mellon Corp increased its position in Restaurant Brands International by 0.9% during the first quarter. Similarly, Cambridge Investment Research Advisors Inc. boosted their holdings by 2.6%, while PNC Financial Services Group Inc. grew its stake by 12.6%. Healthcare of Ontario Pension Plan Trust Fund also showed a significant increase in holdings (73.6%), as did Dimensional Fund Advisors LP (99.3%).
These investments by various hedge funds suggest that there is confidence within the financial community in the growth potential of Restaurant Brands International.
While these reports may offer some insight into the sentiment surrounding Restaurant Brands International, it is important for investors to conduct their own research and analysis before making any investment decisions. The stock market is inherently unpredictable, and individual investors should consider consulting with financial advisors to determine a suitable investment strategy based on their own goals and risk tolerance.
As of October 11, 2023, Restaurant Brands International continues to attract attention from analysts and investors alike due to its presence in the highly competitive fast-food industry.