Restaurant Brands International (NYSE:QSR) Hits New 52-Week High - What's Next?

Key Points

• Restaurant Brands International (QSR) hit a new 52-week high of $80.72 (last trade $80.81) on Thursday with ~197,931 shares changing hands, and Wall Street consensus is a Moderate Buy (average target $80.35; 16 Buy / 8 Hold / 1 Sell) with mixed analyst price targets.
• QSR posted an EPS beat ($0.96 vs. $0.93) and revenue of $2.47B (up 7.4% YoY), trades at a PE of 34.11, and raised its quarterly dividend to $0.65 (annualized $2.60, yield 3.2%) though the payout ratio is high at 110%.
• Insiders have been net sellers (CEO sold 200,000 shares; insiders sold 441,490 shares in the past 90 days) even as institutional ownership remains very high at 82.29%, with large increases from firms like Baupost and Capital World Investors.

Restaurant Brands International Inc. (NYSE:QSR - Get Free Report) TSE: QSR's share price reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $80.72 and last traded at $80.8120, with a volume of 197931 shares trading hands. The stock had previously closed at $79.00.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on QSR. Barclays lowered their price objective on shares of Restaurant Brands International from $86.00 to $82.00 and set an "overweight" rating for the company in a research report on Friday, February 13th. TD Cowen upped their price target on Restaurant Brands International from $72.00 to $76.00 and gave the stock a "hold" rating in a research note on Tuesday, April 14th. Stifel Nicolaus upgraded Restaurant Brands International from a "hold" rating to a "buy" rating and raised their price target for the stock from $68.00 to $90.00 in a research report on Monday, March 2nd. JPMorgan Chase & Co. dropped their price objective on Restaurant Brands International from $77.00 to $72.00 and set an "overweight" rating for the company in a research note on Tuesday, February 24th. Finally, KeyCorp boosted their price objective on Restaurant Brands International from $78.00 to $90.00 and gave the company an "overweight" rating in a report on Monday. Sixteen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $80.35.

Restaurant Brands International Stock Performance

The stock has a market capitalization of $27.99 billion, a PE ratio of 34.11, a P/E/G ratio of 2.25 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. The firm's 50 day moving average is $73.41 and its two-hundred day moving average is $70.47.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR last issued its quarterly earnings results on Thursday, February 12th. The restaurant operator reported $0.96 EPS for the quarter, beating the consensus estimate of $0.93 by $0.03. The company had revenue of $2.47 billion during the quarter, compared to analysts' expectations of $2.41 billion. Restaurant Brands International had a net margin of 8.23% and a return on equity of 32.51%. The firm's revenue was up 7.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.81 EPS. As a group, research analysts predict that Restaurant Brands International Inc. will post 4.05 earnings per share for the current year.

Restaurant Brands International Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Thursday, March 19th were issued a dividend of $0.65 per share. This is a positive change from Restaurant Brands International's previous quarterly dividend of $0.62. The ex-dividend date was Thursday, March 19th. This represents a $2.60 annualized dividend and a yield of 3.2%. Restaurant Brands International's dividend payout ratio (DPR) is currently 110.17%.

Insider Buying and Selling

In other news, insider Jacqueline Friesner sold 30,000 shares of Restaurant Brands International stock in a transaction on Monday, March 16th. The shares were sold at an average price of $74.61, for a total transaction of $2,238,300.00. Following the completion of the sale, the insider directly owned 165,727 shares of the company's stock, valued at approximately $12,364,891.47. The trade was a 15.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Joshua Kobza sold 200,000 shares of the business's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $75.05, for a total transaction 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. The trade was a 17.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 441,490 shares of company stock worth $32,375,140 over the last ninety days. Company insiders own 1.25% of the company's stock.

Institutional Trading of Restaurant Brands International

A number of institutional investors have recently bought and sold shares of QSR. Baupost Group LLC MA raised its holdings in Restaurant Brands International by 103.8% during the third quarter. Baupost Group LLC MA now owns 8,252,862 shares of the restaurant operator's stock worth $529,337,000 after purchasing an additional 4,203,300 shares in the last quarter. Platinum Paramount Investment LTD. acquired a new stake in shares of Restaurant Brands International in the fourth quarter valued at approximately $281,033,000. Norges Bank purchased a new position in shares of Restaurant Brands International during the fourth quarter worth approximately $260,709,000. Capital World Investors grew its position in shares of Restaurant Brands International by 7.7% during the fourth quarter. Capital World Investors now owns 43,525,570 shares of the restaurant operator's stock worth $2,969,819,000 after acquiring an additional 3,095,167 shares during the last quarter. Finally, State Street Corp increased its holdings in shares of Restaurant Brands International by 9,477.4% in the 2nd quarter. State Street Corp now owns 2,997,344 shares of the restaurant operator's stock valued at $198,711,000 after acquiring an additional 2,966,048 shares during the period. 82.29% of the stock is owned by hedge funds and other institutional investors.

Restaurant Brands International Company Profile

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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