Restaurant Brands International (NYSE:QSR) Sets New 1-Year High on Analyst Upgrade

Key Points

• Shares of Restaurant Brands International hit a new 52‑week high after TD Cowen raised its price target to $76, trading as high as $78.53; analysts' consensus is a Moderate Buy with an average target of $79.38.
• Insiders have been net sellers, offloading 441,490 shares worth about $32.4 million over the past three months (e.g., Jill Granat sold 25,000 shares), leaving insiders with 1.25% ownership.
• RBI beat quarterly estimates with $0.96 EPS and $2.47B revenue, and raised the quarterly dividend to $0.65 (annualized $2.60) for a ~3.3% yield, though the payout ratio is 110%.

Shares of Restaurant Brands International Inc. (NYSE:QSR - Get Free Report) TSE: QSR hit a new 52-week high during trading on Tuesday after TD Cowen raised their price target on the stock from $72.00 to $76.00. TD Cowen currently has a hold rating on the stock. Restaurant Brands International traded as high as $78.53 and last traded at $78.7010, with a volume of 184937 shares changing hands. The stock had previously closed at $77.51.

Other equities analysts have also issued research reports about the stock. Scotiabank cut their target price on shares of Restaurant Brands International from $74.00 to $71.00 and set a "sector perform" rating for the company in a research report on Friday, February 13th. Guggenheim increased their target price on shares of Restaurant Brands International from $79.00 to $80.00 and gave the stock a "buy" rating in a research report on Friday, February 27th. Barclays cut their target price 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. JPMorgan Chase & Co. cut their target price on shares of Restaurant Brands International from $77.00 to $72.00 and set an "overweight" rating for the company in a research report on Tuesday, February 24th. Finally, Truist Financial increased their target price on shares of Restaurant Brands International from $83.00 to $87.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. Fourteen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $79.38.

Insiders Place Their Bets

In related news, insider Jill Granat sold 25,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $75.09, for a total value of $1,877,250.00. Following the sale, the insider directly owned 478,845 shares of the company's stock, valued at $35,956,471.05. This trade represents a 4.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Thiago T. Santelmo sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $75.41, for a total transaction of $754,100.00. Following the completion of the sale, the insider directly owned 78,560 shares in the company, valued at $5,924,209.60. This represents a 11.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 441,490 shares of company stock valued at $32,375,140 over the last three months. Corporate insiders own 1.25% of the company's stock.

Institutional Investors Weigh In On Restaurant Brands International

Institutional investors and hedge funds have recently bought and sold shares of the stock. Lloyd Advisory Services LLC. purchased a new stake in Restaurant Brands International in the fourth quarter valued at approximately $25,000. Larson Financial Group LLC raised its stake in Restaurant Brands International by 1,922.2% in the fourth quarter. Larson Financial Group LLC now owns 364 shares of the restaurant operator's stock valued at $25,000 after purchasing an additional 346 shares in the last quarter. Steigerwald Gordon & Koch Inc. purchased a new stake in Restaurant Brands International in the third quarter valued at approximately $29,000. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA purchased a new stake in Restaurant Brands International in the fourth quarter valued at approximately $29,000. Finally, UMB Bank n.a. raised its stake in shares of Restaurant Brands International by 50.4% during the fourth quarter. UMB Bank n.a. now owns 639 shares of the restaurant operator's stock worth $44,000 after acquiring an additional 214 shares in the last quarter. 82.29% of the stock is owned by hedge funds and other institutional investors.

Restaurant Brands International Price Performance

The stock has a market capitalization of $27.33 billion, a PE ratio of 33.35, a P/E/G ratio of 2.17 and a beta of 0.51. The firm's 50 day simple moving average is $72.20 and its 200 day simple moving average is $69.89. The company has a debt-to-equity ratio of 2.62, a current ratio of 0.98 and a quick ratio of 0.91.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR last posted its quarterly earnings results on Thursday, February 12th. The restaurant operator reported $0.96 EPS for the quarter, topping the consensus estimate of $0.93 by $0.03. The firm had revenue of $2.47 billion for the quarter, compared to the consensus estimate of $2.41 billion. Restaurant Brands International had a net margin of 8.23% and a return on equity of 32.51%. The business's revenue was up 7.4% compared to the same quarter last year. During the same period last year, the firm posted $0.81 earnings per share. As a group, equities analysts forecast that Restaurant Brands International Inc. will post 3.72 EPS for the current fiscal year.

Restaurant Brands International Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Thursday, March 19th were paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 3.3%. This is a boost from Restaurant Brands International's previous quarterly dividend of $0.62. The ex-dividend date of this dividend was Thursday, March 19th. 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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