Piper Jaffray analyst, Nicole Miller Regan,cut her PT on Restaurant Brands International (NYSE: QSR) due to industry multiple compression after 4Q15 results were better-than expected. No change to Overweight rating.

Fourth-quarter results were betterthan-expected with total revenues at $6.0 billion and system-wide same-store sales of +3.9% at the BK brand and +6.3% at the TH brand. At BK, North America same-store sales were +2.8% as food platforms (including the new hot dog offering) appear to be in place to continue evolving and capitalizing on the BK brand heritage. At TH, Canada same-store sales were +6.4% as the team levers brand value, grows day part opportunities, and strategically culls the portfolio.

The analyst maintained the FY16 EPS forecast of $1.26 as better-than expected results at least partially offset foreign exchange rate weakness over the near-term. This business model continues to generate substantial cash flows, and the current model does not reflect any material cost saves, share repurchase or increase in dividend payout ratio. From a sensitivity perspective every 1x turn in the EBITDA multiple equates to $4/share.

PT goes to $40 from $50 on 17x FY16E EV/EBITDA on industry multiple have compression.

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Shares of Restaurant Brands International closed at $33.82 yesterday.