Restaurant Brands International (NYSE:QSR) was established in 2015 when Burger King, controlled by 3G Capital Partners LP, took over Canadian coffee-and-doughnut chain Tim Hortons for $11 billion.
The Oakville, Ontario, Canada-based quick service restaurant operator reported adjusted Q4 EPS of $0.44, which was $0.02 better than the Wall Street consensus estimate of $0.42. Comparable sales are considered a key indicator of a retailer's health, since they measure only the performance of stores open at least 12 months.
"We accelerated our net restaurant growth on the Tim Hortons side and on the Burger King side".
During 2016, the number of restaurants for Burger King increased by 4.9% and for Tim Hortons 4.5%. Stephens upgraded shares of Restaurant Brands International from an "equal weight" rating to an "overweight" rating and set a $52.00 target price on the stock in a report on Wednesday, October 19th. Year-to-date, QSR has gained 7.89%, versus a 3.57% rise in the benchmark S&P 500 index during the same period. Following the merger of the two companies just a few short years back, the behemoths combined to form Restaurant Brands, which now encompasses over 20,000 restaurants in over 100 countries with $24 billion in annual sales.
For the full year, profit for Restaurant Brands came in impressively 233% higher than the US$103.9 million, or $0.50 per share, reported last year. The prior-year quarter was hurt by restructuring charges.
Analysts polled by Thomson Reuters had predicted earnings of 41 cents on $1.11 billion in revenue. This is a positive change from Restaurant Brands International's previous quarterly dividend of $0.17. The average stock price target is $52.11 with 1 firm rating the stock a strong buy, 4 brokers rating the company a buy, six brokerages rating the company a hold, zero brokerages rating the company a underperform, and lastly zero analysts rating the company a sell.
That expansion is not limited to the global market either; Tim Hortons's US locations are now situated in border states, but a broader expansion is starting to take shape. Restaurant Brands International has a 12 month low of $31.58 and a 12 month high of $51.58.
Burger King's purchase of Belgian Quick restaurants will ultimately result in additional locations added to its network; the first restaurants in France were converted a year ago. RBC Capital Markets increased their target price on shares of Restaurant Brands International from $49.00 to $54.00 and gave the stock an "outperform" rating in a report on Tuesday, October 25th. (NYSE:QSR): On Friday heightened volatility was witnessed in Restaurant Brands International Inc.
In my opinion, Restaurant Brands International is a great option for investors looking for long-term growth.