Restaurant Brands International Inc. (NYSE:QSR) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Moderate Buy consensus: 25 analysts rate Restaurant Brands International an average "Moderate Buy" (16 buys, 8 holds, 1 sell) with a 12‑month average price target of $81.39.
• Insiders have been net sellers — CEO Joshua Kobza sold 200,000 shares at about $75.05 and insiders sold 441,490 shares (~$32.4M) in the last 90 days, leaving insiders with roughly 1.25% ownership.
• Company beat expectations with Q4 EPS of $0.96 (vs. $0.93 est.) and 7.4% revenue growth, and raised the quarterly dividend to $0.65 ($2.60 annualized, ~3.2% yield) though the payout ratio is about 110%.

Shares of Restaurant Brands International Inc. (NYSE:QSR - Get Free Report) TSE: QSR have received a consensus rating of "Moderate Buy" from the twenty-five ratings firms that are presently covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell rating, eight have issued a hold rating and sixteen have given a buy rating to the company. The average 12-month price objective among analysts that have issued ratings on the stock in the last year is $81.3913.

A number of equities analysts have weighed in on QSR shares. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Restaurant Brands International in a research note on Thursday, January 22nd. Morgan Stanley raised their target price on shares of Restaurant Brands International from $77.00 to $78.00 and gave the company an "equal weight" rating in a research note on Tuesday, March 3rd. Stifel Nicolaus raised shares of Restaurant Brands International from a "hold" rating to a "buy" rating and raised their target price for the company from $68.00 to $90.00 in a research note on Monday, March 2nd. Barclays cut their target price on shares of Restaurant Brands International from $86.00 to $82.00 and set an "overweight" rating on the stock in a research note on Friday, February 13th. Finally, TD Cowen raised their target price on shares of Restaurant Brands International from $72.00 to $76.00 and gave the company a "hold" rating in a research note on Tuesday, April 14th.

Insiders Place Their Bets

In other news, CEO Joshua Kobza sold 200,000 shares of the firm's stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $75.05, for a total value of $15,010,000.00. Following the transaction, the chief executive officer owned 960,769 shares of the company's stock, valued at approximately $72,105,713.45. This trade represents a 17.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Axel Schwan sold 34,939 shares of the firm's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $67.51, for a total transaction of $2,358,731.89. Following the completion of the transaction, the insider directly owned 194,984 shares in the company, valued at approximately $13,163,369.84. This represents a 15.20% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 441,490 shares of company stock worth $32,375,140. 1.25% of the stock is owned by company insiders.

Hedge Funds Weigh In On Restaurant Brands International

A number of hedge funds have recently made changes to their positions in QSR. D.A. Davidson & CO. raised its holdings in shares of Restaurant Brands International by 1.9% during the 4th quarter. D.A. Davidson & CO. now owns 8,451 shares of the restaurant operator's stock valued at $577,000 after purchasing an additional 154 shares in the last quarter. Capital Analysts LLC boosted its holdings in shares of Restaurant Brands International by 20.6% during the 4th quarter. Capital Analysts LLC now owns 924 shares of the restaurant operator's stock worth $63,000 after buying an additional 158 shares during the period. Legacy Wealth Asset Management LLC boosted its holdings in shares of Restaurant Brands International by 2.0% during the 4th quarter. Legacy Wealth Asset Management LLC now owns 8,029 shares of the restaurant operator's stock worth $548,000 after buying an additional 161 shares during the period. Applied Finance Capital Management LLC boosted its holdings in Restaurant Brands International by 1.9% in the 4th quarter. Applied Finance Capital Management LLC now owns 9,440 shares of the restaurant operator's stock valued at $644,000 after purchasing an additional 179 shares during the period. Finally, Asset Management One Co. Ltd. boosted its holdings in Restaurant Brands International by 0.3% in the 4th quarter. Asset Management One Co. Ltd. now owns 57,512 shares of the restaurant operator's stock valued at $3,967,000 after purchasing an additional 194 shares during the period. Hedge funds and other institutional investors own 82.29% of the company's stock.

Restaurant Brands International Stock Down 0.3%

Shares of NYSE QSR opened at $80.96 on Friday. Restaurant Brands International has a 1 year low of $61.33 and a 1 year high of $81.67. The firm's 50 day moving average price is $74.01 and its 200 day moving average price is $70.63. The firm has a market cap of $28.10 billion, a P/E ratio of 34.30, a price-to-earnings-growth ratio of 2.33 and a beta of 0.51. The company has a debt-to-equity ratio of 2.62, a quick ratio of 0.91 and a current ratio of 0.98.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR last announced its earnings results on Thursday, February 12th. The restaurant operator reported $0.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.93 by $0.03. The firm had revenue of $2.47 billion for the quarter, compared to analyst estimates of $2.41 billion. Restaurant Brands International had a net margin of 8.23% and a return on equity of 32.51%. Restaurant Brands International's revenue was up 7.4% compared to the same quarter last year. During the same quarter last year, the business earned $0.81 earnings per share. As a group, sell-side analysts anticipate that Restaurant Brands International will post 4.05 earnings per share for the current year.

Restaurant Brands International Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Thursday, March 19th were paid a $0.65 dividend. The ex-dividend date of this dividend was Thursday, March 19th. This represents a $2.60 dividend on an annualized basis and a dividend yield of 3.2%. This is a boost from Restaurant Brands International's previous quarterly dividend of $0.62. Restaurant Brands International's payout ratio is 110.17%.

About Restaurant Brands International

Restaurant Brands International Inc NYSE: QSR is a global quick-service restaurant company formed through the combination of established brands. The company's principal holdings include Burger King, Tim Hortons and Popeyes, each of which operates under its own brand identity and menu. Restaurant Brands International's business is centered on developing and expanding these franchised restaurant systems, supporting franchisees with brand management, supply chain coordination, and marketing programs.

RBI's restaurants offer a range of quick-service food and beverage products: Burger King is known for its flame-grilled hamburgers and sandwiches, Tim Hortons for coffee, baked goods and breakfast items, and Popeyes for Louisiana-style fried chicken and seafood.

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