Scotiabank Has Pessimistic Outlook of QSR FY2026 Earnings

Key Points

• Scotiabank lowered its FY2026 EPS forecast for Restaurant Brands International to $4.01 from $4.02, below the $4.04 consensus estimate. The firm maintained a “Sector Perform” rating and an $83 price target.
• RBI’s latest quarterly results exceeded expectations, with EPS of $0.86 versus $0.83 expected and revenue of $2.26 billion versus $2.24 billion. Revenue increased 7.3% year over year.
• The stock was trading at $75.54, while analysts maintained a consensus “Moderate Buy” rating and an $83.86 average price target; RBI also pays a quarterly dividend of $0.65, yielding approximately 3.4% annually.

Restaurant Brands International Inc. (NYSE:QSR - Free Report) TSE: QSR - Equities researchers at Scotiabank reduced their FY2026 earnings per share (EPS) estimates for shares of Restaurant Brands International in a research note issued on Wednesday, July 29th. Scotiabank analyst J. Zamparo now forecasts that the restaurant operator will post earnings per share of $4.01 for the year, down from their previous estimate of $4.02. Scotiabank has a "Sector Perform" rating and a $83.00 price target on the stock. The consensus estimate for Restaurant Brands International's current full-year earnings is $4.04 per share.

Restaurant Brands International (NYSE:QSR - Get Free Report) TSE: QSR last posted its quarterly earnings results on Wednesday, May 6th. The restaurant operator reported $0.86 earnings per share for the quarter, topping the consensus estimate of $0.83 by $0.03. Restaurant Brands International had a return on equity of 32.80% and a net margin of 9.96%.The business had revenue of $2.26 billion during the quarter, compared to the consensus estimate of $2.24 billion. During the same period in the prior year, the company posted $0.75 EPS. The firm's revenue for the quarter was up 7.3% compared to the same quarter last year.

QSR has been the topic of several other reports. KeyCorp upped their price objective on Restaurant Brands International from $78.00 to $90.00 and gave the stock an "overweight" rating in a report on Monday, April 20th. TD Cowen boosted their price target on Restaurant Brands International from $79.00 to $80.00 and gave the company a "hold" rating in a report on Thursday, July 9th. UBS Group increased their target price on shares of Restaurant Brands International from $85.00 to $90.00 and gave the stock a "buy" rating in a report on Monday, May 4th. JPMorgan Chase & Co. lifted their price target on Restaurant Brands International from $77.00 to $80.00 and gave the company an "overweight" rating in a report on Friday, April 24th. Finally, Morgan Stanley lifted their price objective on shares of Restaurant Brands International from $78.00 to $79.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 15th. Fifteen analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, Restaurant Brands International has an average rating of "Moderate Buy" and a consensus price target of $83.86.

Restaurant Brands International Trading Up 0.9%

Restaurant Brands International stock opened at $75.54 on Thursday. Restaurant Brands International has a 1 year low of $61.33 and a 1 year high of $81.96. The firm's 50 day moving average price is $73.94 and its 200-day moving average price is $73.43. The company has a debt-to-equity ratio of 2.55, a current ratio of 0.99 and a quick ratio of 0.90. The stock has a market cap of $26.38 billion, a P/E ratio of 26.60, a PEG ratio of 2.18 and a beta of 0.50.

Institutional Investors Weigh In On Restaurant Brands International

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Lloyd Advisory Services LLC. acquired a new position in shares of Restaurant Brands International in the 4th quarter valued at $25,000. Larson Financial Group LLC raised its stake in Restaurant Brands International by 1,922.2% in the 4th quarter. Larson Financial Group LLC now owns 364 shares of the restaurant operator's stock worth $25,000 after acquiring an additional 346 shares during the last quarter. Western Wealth Management LLC acquired a new stake in Restaurant Brands International during the 1st quarter worth about $28,000. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA acquired a new stake in Restaurant Brands International during the 4th quarter worth about $29,000. Finally, CoreCap Advisors LLC grew its stake in Restaurant Brands International by 304.3% during the 2nd quarter. CoreCap Advisors LLC now owns 465 shares of the restaurant operator's stock valued at $34,000 after purchasing an additional 350 shares during the last quarter. 82.29% of the stock is currently owned by institutional investors and hedge funds.

Restaurant Brands International Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Shareholders of record on Tuesday, June 23rd were paid a dividend of $0.65 per share. The ex-dividend date was Tuesday, June 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 3.4%. Restaurant Brands International's dividend payout ratio is presently 91.55%.

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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