Zacks Investment Research Lowers Restaurant Brands International Inc. (NYSE:QSR) to Hold
Restaurant Brands International Inc. (NYSE:QSR) (TSE:QSR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Monday.
According to Zacks, “Restaurant Brands’ second-quarter 2017 adjusted earnings of $0.51 per share beat the Zacks Consensus Estimate by 13.3% and rose 24.4% year over year. Revenues of $1.13 billion increased nearly 9% year over year but fell just short of the consensus mark. Notably, this marked the 10th consecutive quarterly earnings beat for the company. Meanwhile, though comps rose at Burger King, the same fell at Tim Hortons and Popeyes. Going into the second half, the company aims to maintain the momentum at Burger King, while improving comps growth at Tim Hortons and Popeyes via various sales-boosting initiatives. Additionally, it plans to continue focusing on expansion, guest satisfaction and franchisee profitability to drive long-term growth. Notably, Restaurant Brands’ shares outpaced the industry in the last six months. Yet, rising costs along with currency woes may dent profits, while a soft consumer spending environment might hurt comps.”
Several other equities analysts have also recently issued reports on QSR. Royal Bank Of Canada reissued a “buy” rating and issued a $63.00 price objective on shares of Restaurant Brands International in a research note on Monday, April 10th. OTR Global reissued a “positive” rating on shares of Restaurant Brands International in a research note on Tuesday, April 11th. Citigroup Inc. boosted their price objective on shares of Restaurant Brands International from $59.00 to $65.00 and gave the company a “buy” rating in a research note on Tuesday, April 11th. UBS AG boosted their price objective on shares of Restaurant Brands International from $60.00 to $64.00 and gave the company a “buy” rating in a research note on Monday, April 24th. Finally, Scotiabank reissued an “outperform” rating and issued a $65.00 price objective on shares of Restaurant Brands International in a research note on Tuesday, April 25th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and twelve have issued a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average price target of $63.63.
Restaurant Brands International (QSR) traded down 0.27% during mid-day trading on Monday, reaching $61.94. 1,237,342 shares of the company traded hands. The stock’s 50 day moving average price is $61.24 and its 200 day moving average price is $56.95. Restaurant Brands International has a 52 week low of $42.35 and a 52 week high of $62.94. The firm has a market capitalization of $14.63 billion, a price-to-earnings ratio of 43.34 and a beta of 1.77.
Restaurant Brands International (NYSE:QSR) (TSE:QSR) last announced its quarterly earnings data on Wednesday, August 2nd. The restaurant operator reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.06. The company had revenue of $1.13 billion for the quarter, compared to analysts’ expectations of $1.14 billion. Restaurant Brands International had a net margin of 12.66% and a return on equity of 22.71%. Restaurant Brands International’s revenue was up 8.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.41 EPS. Equities analysts forecast that Restaurant Brands International will post $1.89 EPS for the current year.
Restaurant Brands International announced that its Board of Directors has approved a share buyback plan on Wednesday, August 2nd that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the restaurant operator to repurchase up to 2.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its shares are undervalued.
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In related news, EVP Jose E. Cil sold 1,760 shares of the stock in a transaction dated Thursday, June 8th. The shares were sold at an average price of $59.75, for a total value of $105,160.00. Following the sale, the executive vice president now directly owns 22,855 shares of the company’s stock, valued at approximately $1,365,586.25. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Ali Hedayat acquired 5,000 shares of the stock in a transaction that occurred on Friday, August 4th. The stock was acquired at an average cost of $61.32 per share, for a total transaction of $306,600.00. Following the completion of the purchase, the director now owns 25,966 shares in the company, valued at approximately $1,592,235.12. The disclosure for this purchase can be found here. Over the last three months, insiders sold 250,000 shares of company stock worth $14,849,219. 4.20% of the stock is owned by corporate insiders.
Large investors have recently modified their holdings of the stock. FMR LLC boosted its position in Restaurant Brands International by 7.6% in the first quarter. FMR LLC now owns 13,964,143 shares of the restaurant operator’s stock worth $777,880,000 after buying an additional 989,549 shares during the period. Principal Financial Group Inc. boosted its position in Restaurant Brands International by 4.0% in the first quarter. Principal Financial Group Inc. now owns 8,364,353 shares of the restaurant operator’s stock worth $466,229,000 after buying an additional 321,262 shares during the period. Bank of Montreal Can boosted its position in Restaurant Brands International by 12.5% in the first quarter. Bank of Montreal Can now owns 7,266,766 shares of the restaurant operator’s stock worth $405,048,000 after buying an additional 804,609 shares during the period. Vanguard Group Inc. boosted its position in Restaurant Brands International by 4.3% in the first quarter. Vanguard Group Inc. now owns 4,719,182 shares of the restaurant operator’s stock worth $263,048,000 after buying an additional 193,389 shares during the period. Finally, Valinor Management L.P. boosted its position in Restaurant Brands International by 7.8% in the first quarter. Valinor Management L.P. now owns 3,752,166 shares of the restaurant operator’s stock worth $209,145,000 after buying an additional 270,071 shares during the period. 75.54% of the stock is currently owned by hedge funds and other institutional investors.
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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