Northcoast Research Downgrades Restaurant Brands International (NYSE:QSR) to Neutral

Key Points

• Restaurant Brands International has been downgraded from a "buy" rating to a "neutral" rating by Northcoast Research, signaling a shift in analyst sentiment.
• The company's recent quarterly earnings report revealed a missed earnings per share estimate at $0.94, compared to the expected $0.97, despite a revenue increase of 15.9% year-over-year.
• Currently, Restaurant Brands International holds a consensus rating of "Hold" from analysts, with an average price target of $75.04.

Northcoast Research cut shares of Restaurant Brands International (NYSE:QSR - Free Report) TSE: QSR from a buy rating to a neutral rating in a research note published on Friday, Marketbeat reports.

A number of other analysts have also weighed in on QSR. Loop Capital restated a "buy" rating on shares of Restaurant Brands International in a research report on Thursday, June 26th. Sanford C. Bernstein set a $78.00 price target on shares of Restaurant Brands International in a report on Friday, August 8th. Morgan Stanley cut their price target on shares of Restaurant Brands International from $73.00 to $72.00 and set an "equal weight" rating on the stock in a report on Monday, July 14th. Guggenheim lifted their price target on shares of Restaurant Brands International from $77.00 to $78.00 and gave the stock a "buy" rating in a report on Wednesday, August 13th. Finally, Piper Sandler cut their price target on shares of Restaurant Brands International from $72.00 to $70.00 and set a "neutral" rating on the stock in a report on Friday, August 8th. Eleven equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Restaurant Brands International presently has a consensus rating of "Hold" and a consensus target price of $75.04.

Restaurant Brands International Price Performance

Restaurant Brands International stock traded up $0.62 during mid-day trading on Friday, reaching $64.47. The company had a trading volume of 912,320 shares, compared to its average volume of 2,509,080. Restaurant Brands International has a fifty-two week low of $58.71 and a fifty-two week high of $74.09. The company has a current ratio of 1.01, a quick ratio of 0.95 and a debt-to-equity ratio of 2.69. The company has a market cap of $21.13 billion, a P/E ratio of 24.44, a P/E/G ratio of 2.75 and a beta of 0.61. The business has a fifty day simple moving average of $65.79 and a 200 day simple moving average of $66.46.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR last issued its earnings results on Thursday, August 7th. The restaurant operator reported $0.94 earnings per share for the quarter, missing analysts' consensus estimates of $0.97 by ($0.03). Restaurant Brands International had a net margin of 9.43% and a return on equity of 29.54%. The company had revenue of $2.41 billion during the quarter, compared to analyst estimates of $2.33 billion. During the same quarter in the prior year, the business earned $0.86 EPS. The business's quarterly revenue was up 15.9% on a year-over-year basis. On average, equities research analysts predict that Restaurant Brands International will post 3.72 earnings per share for the current year.

Restaurant Brands International Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 7th. Stockholders of record on Tuesday, September 23rd will be given a dividend of $0.62 per share. The ex-dividend date is Tuesday, September 23rd. This represents a $2.48 annualized dividend and a dividend yield of 3.8%. Restaurant Brands International's dividend payout ratio (DPR) is 93.94%.

Institutional Investors Weigh In On Restaurant Brands International

A number of large investors have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its holdings in Restaurant Brands International by 16.7% in the 1st quarter. Royal Bank of Canada now owns 22,626,635 shares of the restaurant operator's stock worth $1,507,839,000 after acquiring an additional 3,230,735 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Restaurant Brands International by 8.0% during the 2nd quarter. Vanguard Group Inc. now owns 15,303,726 shares of the restaurant operator's stock valued at $1,015,137,000 after purchasing an additional 1,134,665 shares in the last quarter. EdgePoint Investment Group Inc. boosted its stake in Restaurant Brands International by 7.0% during the first quarter. EdgePoint Investment Group Inc. now owns 13,715,604 shares of the restaurant operator's stock worth $914,463,000 after acquiring an additional 896,034 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in Restaurant Brands International by 0.6% during the first quarter. Goldman Sachs Group Inc. now owns 8,108,527 shares of the restaurant operator's stock worth $540,352,000 after acquiring an additional 47,192 shares in the last quarter. Finally, 1832 Asset Management L.P. boosted its stake in Restaurant Brands International by 4.3% during the first quarter. 1832 Asset Management L.P. now owns 6,959,757 shares of the restaurant operator's stock worth $463,798,000 after acquiring an additional 289,233 shares in the last quarter. Institutional investors own 82.29% of the company's stock.

About Restaurant Brands International

Restaurant Brands International Inc operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products.