Scotiabank Has Bullish Estimate for QSR FY2026 Earnings

Key Points

• Scotiabank raised its FY2026 EPS estimate for Restaurant Brands International to $4.03 (from $4.02) and reiterated a "Sector Perform" rating with an $81 price target, also forecasting $4.42 EPS for FY2027.
• Several other analysts have increased price targets (including RBC to $90 and JPMorgan to $80), leaving the stock with a consensus "Moderate Buy" rating and an average price target of $82.04.
• RBI recently beat quarterly EPS and revenue estimates and raised its quarterly dividend to $0.65 (a 3.2% yield), but the dividend payout ratio is high at 110% and insiders sold about 441,490 shares (~$32.4M) in the last quarter.

Restaurant Brands International Inc. (NYSE:QSR - Free Report) TSE: QSR - Analysts at Scotiabank upped their FY2026 earnings per share estimates for shares of Restaurant Brands International in a note issued to investors on Friday, May 1st. Scotiabank analyst J. Zamparo now anticipates that the restaurant operator will post earnings per share of $4.03 for the year, up from their prior estimate of $4.02. Scotiabank currently has a "Sector Perform" rating and a $81.00 price objective on the stock. The consensus estimate for Restaurant Brands International's current full-year earnings is $4.05 per share. Scotiabank also issued estimates for Restaurant Brands International's FY2027 earnings at $4.42 EPS.

Several other analysts have also commented on the stock. Royal Bank Of Canada raised their price target on shares of Restaurant Brands International from $83.00 to $90.00 and gave the company an "outperform" rating in a research report on Tuesday, April 21st. JPMorgan Chase & Co. upped their price objective on shares of Restaurant Brands International from $77.00 to $80.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Barclays dropped their target price on Restaurant Brands International from $86.00 to $82.00 and set an "overweight" rating on the stock in a research report on Friday, February 13th. Truist Financial lifted their price target on Restaurant Brands International from $83.00 to $87.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Finally, Guggenheim upped their price target on Restaurant Brands International from $79.00 to $80.00 and gave the stock a "buy" rating in a report on Friday, February 27th. Sixteen equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $82.04.

Restaurant Brands International Price Performance

NYSE:QSR opened at $80.05 on Tuesday. The company has a debt-to-equity ratio of 2.62, a current ratio of 0.98 and a quick ratio of 0.91. The company has a 50 day moving average price of $74.90 and a 200-day moving average price of $71.01. Restaurant Brands International has a 1-year low of $61.33 and a 1-year high of $81.67. The firm has a market cap of $27.80 billion, a price-to-earnings ratio of 33.92, a price-to-earnings-growth ratio of 2.25 and a beta of 0.53.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR last released its quarterly earnings data 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 business had revenue of $2.47 billion for the quarter, compared to analyst estimates of $2.41 billion. Restaurant Brands International had a return on equity of 32.51% and a net margin of 8.23%.The business's quarterly revenue was up 7.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.81 EPS.

Restaurant Brands International Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Thursday, March 19th were given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend was Thursday, March 19th. This is a boost from Restaurant Brands International's previous quarterly dividend of $0.62. Restaurant Brands International's dividend payout ratio is presently 110.17%.

Insider Activity

In other Restaurant Brands International news, CEO Joshua Kobza sold 200,000 shares of Restaurant Brands International stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $75.05, for a total value of $15,010,000.00. Following the sale, the chief executive officer owned 960,769 shares in the company, valued at $72,105,713.45. The trade was a 17.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jacqueline Friesner sold 30,000 shares of the company's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $74.61, for a total value of $2,238,300.00. Following the completion of the transaction, the insider directly owned 165,727 shares in the company, valued at approximately $12,364,891.47. This trade represents a 15.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 441,490 shares of company stock worth $32,375,140. 1.25% of the stock is owned by company insiders.

Institutional Trading of Restaurant Brands International

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

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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