Restaurant Brands International (TSE:QSR) Hits New 1-Year High - Should You Buy?

Key Points

• Shares hit a new 52-week high — QSR traded up to C$110.75 (last C$110.54) while analysts remain mixed: Piper Sandler upgraded to "overweight" but the MarketBeat consensus price target is C$84.00.
• Fundamentals show growth but financial risks — the stock has a high P/E (47.23) and an extremely high debt-to-equity ratio (478.23); the quarterly dividend was raised to $0.65 (annualized $2.60, 2.3% yield) but the payout ratio is 105.53%, suggesting potential sustainability concerns.
• Solid scale and recent results — Restaurant Brands reported C$1.32 EPS for the quarter, C$3.38 billion in revenue, a 23.08% ROE, and operates over 28,000 restaurants (Burger King, Tim Hortons, Popeyes) with more than $35 billion in systemwide sales.

Restaurant Brands International Inc. (TSE:QSR - Get Free Report) NYSE: QSR's stock price reached a new 52-week high on Thursday . The stock traded as high as C$110.75 and last traded at C$110.54, with a volume of 189048 shares traded. The stock had previously closed at C$107.98.

Wall Street Analyst Weigh In

Separately, Piper Sandler raised shares of Restaurant Brands International from a "hold" rating to an "overweight" rating and set a C$84.00 price objective for the company in a research note on Sunday, March 1st. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Restaurant Brands International presently has a consensus rating of "Moderate Buy" and a consensus price target of C$84.00.

Restaurant Brands International Price Performance

The stock has a 50 day simple moving average of C$100.79 and a two-hundred day simple moving average of C$97.42. The company has a market cap of C$38.46 billion, a price-to-earnings ratio of 47.23, a price-to-earnings-growth ratio of 2.22 and a beta of 0.22. The company has a debt-to-equity ratio of 478.23, a current ratio of 0.98 and a quick ratio of 0.80.

Restaurant Brands International (TSE:QSR - Get Free Report) NYSE: QSR last issued its earnings results on Thursday, February 12th. The company reported C$1.32 earnings per share (EPS) for the quarter. Restaurant Brands International had a return on equity of 23.08% and a net margin of 8.23%.The business had revenue of C$3.38 billion during the quarter. On average, equities research analysts predict that Restaurant Brands International Inc. will post 7.3241225 earnings per share for the current fiscal year.

Restaurant Brands International Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Investors of record on Thursday, April 2nd were given a dividend of $0.65 per share. The ex-dividend date was Thursday, March 19th. This is an increase from Restaurant Brands International's previous quarterly dividend of $0.62. This represents a $2.60 annualized dividend and a yield of 2.3%. Restaurant Brands International's dividend payout ratio (DPR) is 105.53%.

Insiders Place Their Bets

In other Restaurant Brands International news, insider Jeffrey Housman sold 20,000 shares of the business's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of C$100.29, for a total value of C$2,005,800.00. Following the transaction, the insider directly owned 162,080 shares in the company, valued at C$16,255,003.20. The trade was a 10.98% decrease in their position. 1.24% of the stock is owned by insiders.

Restaurant Brands International Company Profile

Restaurant Brands International is one of the largest restaurant companies in the world, with more than $35 billion in 2021 systemwide sales across a footprint that spans more than 28,000 restaurants and 100 countries. The firm generates revenue primarily from retail sales at its company-owned restaurants, royalty fees and lease income from franchised stores, and from its Tim Horton's supply chain operations. Formed in 2014 after 3G Capital's acquisition of Tim Horton's International, the Restaurant Brands portfolio now includes Burger King (19,250 units), Tim Horton's (5,300 units), and Popeyes Louisiana Kitchen (3,700 units).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.