Restaurant Brands International (TSE:QSR) Reaches New 52-Week High - Time to Buy?

Key Points

• Shares hit a new 52-week high at C$108.45, though analysts' consensus target is C$84 and Piper Sandler's recent upgrade to "overweight" still uses a C$84 price objective.
• Restaurant Brands raised its quarterly dividend to $0.65 (C$2.60 annualized) for a 2.4% yield, but the dividend payout ratio is an unsustainable-seeming 105.53%.
• Key fundamentals show a market cap of C$37.42B, a high P/E of 45.95 and an extreme debt-to-equity of 478.23, while last quarter's EPS was C$1.32 on C$3.38B revenue.

Restaurant Brands International Inc. (TSE:QSR - Get Free Report) NYSE: QSR shares hit a new 52-week high during trading on Monday . The company traded as high as C$108.45 and last traded at C$108.24, with a volume of 94258 shares. The stock had previously closed at C$106.71.

Analysts Set New Price Targets

Separately, Piper Sandler raised 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 given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Restaurant Brands International presently has a consensus rating of "Moderate Buy" and a consensus target price of C$84.00.

Restaurant Brands International Price Performance

The company has a market capitalization of C$37.42 billion, a P/E ratio of 45.95, a price-to-earnings-growth ratio of 2.22 and a beta of 0.22. The business's 50-day moving average is C$97.26 and its two-hundred day moving average is C$95.94. The company has a quick ratio of 0.80, a current ratio of 0.98 and a debt-to-equity ratio of 478.23.

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

Restaurant Brands International Increases Dividend

The firm also recently declared 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 of this dividend was Thursday, March 19th. This is a positive change from Restaurant Brands International's previous quarterly dividend of $0.62. This represents a $2.60 dividend on an annualized basis and a dividend yield of 2.4%. Restaurant Brands International's dividend payout ratio (DPR) is 105.53%.

Insider Buying and Selling

In related news, insider Jeffrey Housman sold 20,000 shares of Restaurant Brands International stock in a transaction on Friday, March 20th. The stock was sold at an average price of C$100.29, for a total transaction of C$2,005,800.00. Following the sale, the insider directly owned 162,080 shares in the company, valued at approximately C$16,255,003.20. This trade represents a 10.98% decrease in their ownership of the stock. Company insiders own 1.24% of the company's stock.

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).

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