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UPDATE: Bernstein Starts Restaurant Brands International (QSR) at Market Perform

September 7, 2022 4:18 PM EDT
Get Alerts QSR Hot Sheet
Price: $65.81 --0%

Rating Summary:
    13 Buy, 16 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 4 | Down: 9 | New: 11
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(Updated - September 7, 2022 4:20 PM EDT)

Bernstein analyst Danilo Gargiulo initiates coverage on Restaurant Brands International (NYSE: QSR) with a Market Perform rating and a price target of $64.00.

The analyst comments "Restaurant Brands International: (Permanently) Work in progress (QSR, Market-Perform, TP $64, +8% potential upside). Restaurant Brands International (RBI) has continued to post disjointed performance across its three brands. Tim Hortons (TH) transformation is working and we expect it to lead to comp growth of 2%, but international expansion could prove harder than expected. BurgerKing (BK) is a struggling giant in the US, but can continue to grow internationally with its fresher assets. Popeyes Louisiana Kitchen (PLK) and FireHouse Subs (FHS) are growing concepts, but are too small to matter and could be a distraction to reaching RBI's growth plans. Consequently, we rate RBI (QSR) at Market-Perform with 1-year TP at $64. We use PE NTM multiple of 19x with an EPS NTM expansion of 8%, as we believe the market has priced in the worst case scenarios already (RBI trading at its lowest multiple in 5 years). Our diluted EPS estimates for FY23 at $3.1 is in line with consensus."

For an analyst ratings summary and ratings history on Restaurant Brands International click here. For more ratings news on Restaurant Brands International click here.

Shares of Restaurant Brands International closed at $58.58 yesterday.


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