Restaurant Brands International Surpasses Earnings Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy QSR?
Source: Newsfilter
- Strong Earnings Report: Restaurant Brands International reported adjusted earnings of 96 cents per share, exceeding Wall Street's expectation of 95 cents, with revenue reaching $2.47 billion, surpassing the anticipated $2.41 billion, indicating robust international growth.
- Same-Store Sales Growth: The company achieved a same-store sales increase of 3.1%, with international same-store sales climbing 6.1%, significantly above analysts' forecast of 3.7%, showcasing the strength of its international operations.
- Brand Performance Discrepancies: While Burger King reported a same-store sales growth of 2.7%, exceeding the expected 2.4%, Popeyes experienced a decline of 4.8%, much steeper than the anticipated 2.4% drop, highlighting performance variances among brands.
- Future Strategic Plans: Restaurant Brands International plans to share more growth strategies during its investor day on February 26, particularly focusing on its joint venture in China aimed at accelerating Burger King's expansion.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy QSR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on QSR
Wall Street analysts forecast QSR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QSR is 77.47 USD with a low forecast of 65.00 USD and a high forecast of 86.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
11 Buy
8 Hold
1 Sell
Moderate Buy
Current: 70.250
Low
65.00
Averages
77.47
High
86.00
Current: 70.250
Low
65.00
Averages
77.47
High
86.00
About QSR
Restaurant Brands International Inc. is a quick-service restaurant company. It franchises and operates quick-service restaurants serving coffee and other beverage and food products. Its segments include Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs (FHS), International (INTL) and Restaurant Holdings. Tim Hortons is a coffee and baked goods restaurant chain in North America. Tim Hortons restaurants also serve a variety of hot and cold specialty beverages alongside breakfast, lunch and dinner offerings, including sandwiches, wraps, flatbread pizzas, and more. Burger King is a quick-service hamburger restaurant chain and is Home of the Whopper. Burger King restaurants feature flame-grilled hamburgers, chicken and other specialty sandwiches. Popeyes is a quick-service chicken concept, and delivers guests a Louisiana-style menu featuring fried bone-in chicken, chicken sandwiches, chicken tenders, wings, fried shrimp and regional items.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Restaurant Brands International Set to Release Q4 Earnings
- Earnings Announcement: Restaurant Brands International (QSR) is set to announce its Q4 earnings on February 12 before market open, with consensus EPS estimate at $0.95, reflecting a 17.3% year-over-year increase, indicating ongoing improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $2.41 billion, representing a 4.8% year-over-year growth, which will help the company maintain its market share in the competitive fast-food industry and bolster investor confidence.
- Performance Beat Record: Over the past two years, QSR has beaten EPS and revenue estimates 63% of the time, showcasing the company's financial stability and effective management execution, which may attract more investor interest.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 9 upward and 9 downward revisions, while revenue estimates experienced 14 upward and 5 downward revisions, indicating market caution regarding the company's future performance and providing potential buying opportunities for investors.
See More
Analysis of Major Premarket Trading Moves by Companies
- Restaurant Brands Performance: Restaurant Brands reported fourth-quarter earnings of $0.96 per share, exceeding expectations by $0.01, with revenue of $2.47 billion surpassing the $2.41 billion consensus, leading to a 1.3% stock increase, indicating strong financial performance and market confidence.
- Anheuser-Busch Growth: Anheuser-Busch's fourth-quarter earnings reached $0.95 per share, beating the $0.90 analyst estimate, with revenue of $15.56 billion exceeding the $14.95 billion consensus, resulting in a 2.6% stock rise, reflecting robust growth in a competitive beer market.
- Cisco Decline: Cisco's non-GAAP gross margin of 67.5% fell short of the 68.1% expectation, despite second-quarter results exceeding estimates, causing a stock drop of about 7%, highlighting market concerns over its profitability.
- Cloud Computing Surge: Fastly's stock surged 44% after reporting adjusted earnings of $0.12 per share and revenue of $172.6 million, both exceeding expectations, with full-year revenue guidance of $700 million to $720 million far surpassing the $668 million market estimate, showcasing strong demand and growth potential.
See More
Restaurant Brands International Reports 5.8% Sales Growth in Q4
- International Sales Highlight: Restaurant Brands International achieved a system-wide sales growth of 5.8% in Q4, with international locations, particularly Burger King, showing strong performance with same-store sales growth of 5.8%, laying a solid foundation for future expansion.
- Strong Financial Performance: The company reported adjusted EBITDA of $772 million, a significant increase from $66 million a year ago, demonstrating substantial improvements in cost control and operational efficiency, which further bolsters investor confidence.
- Optimistic Future Outlook: CEO Josh Kobza indicated that comparable sales growth is expected to reach 3% in 2026, with organic adjusted operating income growth exceeding 8%, reflecting a positive long-term growth strategy that enhances market confidence in the company's future.
- Cautious Market Reaction: Despite exceeding earnings expectations, shares of Restaurant Brands International fell 2.4% in premarket trading to $69.01, indicating a cautious market sentiment that may influence short-term investor decisions amid broader economic concerns.
See More
Restaurant Brands International Q4 Earnings Exceed Expectations
- Earnings Beat: Restaurant Brands International (QSR) reported a Q4 Non-GAAP EPS of $0.96, exceeding expectations by $0.01, indicating stable profitability and increased market confidence.
- Significant Revenue Growth: The company achieved Q4 revenue of $2.47 billion, a 7.4% year-over-year increase, surpassing market expectations by $60 million, demonstrating strong growth momentum in a competitive fast-food market.
- Future Spending Plans: The company anticipates segment G&A (excluding RH) for 2026 to be between $600 million and $620 million, with RH segment G&A around $100 million, reflecting a clear investment strategy for future growth.
- Long-Term Growth Outlook: Restaurant Brands expects comparable sales growth of over 3% and organic adjusted operating income growth of over 8% from 2024 to 2028, aiming for over 5% net restaurant growth by the end of its algorithm period, showcasing confidence in future market opportunities.
See More
Restaurant Brands International Reports Decline in Q4 Profit
- Profit Decline: Restaurant Brands International reported a net profit of $113 million for Q4, translating to $0.34 per share, a significant drop from last year's $259 million and $0.79 per share, indicating pressure on profitability.
- Adjusted Earnings: Excluding special items, the company reported adjusted earnings of $441 million or $0.96 per share, showing resilience in adjusted performance, yet overall profitability remains under strain.
- Revenue Growth: The total revenue for Q4 reached $2.466 billion, up 7.4% from $2.296 billion last year, demonstrating sales resilience despite the profit decline.
- Market Reaction: The substantial profit drop has led to cautious market sentiment regarding Restaurant Brands International's future outlook, potentially impacting its stock performance and investor confidence.
See More
Restaurant Brands International Reports Strong Quarterly Earnings Exceeding Expectations
- Earnings Beat: Restaurant Brands International reported adjusted earnings of 96 cents per share for Q4, surpassing Wall Street's expectation of 95 cents, indicating strong growth potential in international markets.
- Significant Revenue Growth: The company posted a net income of $113 million for the fourth quarter, down from $259 million a year earlier, yet net sales rose 7.4% to $2.47 billion, reflecting robust market demand.
- Same-Store Sales Performance: International same-store sales increased by 6.1%, significantly exceeding analyst expectations of 3.7%, with Burger King's international same-store sales growing by 5.8%, showcasing the brand's competitiveness in global markets.
- Strategic Expansion Plans: Restaurant Brands plans to accelerate Burger King's expansion in China through a joint venture with Chinese asset manager CPE, further solidifying its position in rapidly growing markets.
See More
Restaurant Brands International Set to Release Q4 Earnings
- Earnings Announcement: Restaurant Brands International (QSR) is set to announce its Q4 earnings on February 12 before market open, with consensus EPS estimate at $0.95, reflecting a 17.3% year-over-year increase, indicating ongoing improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $2.41 billion, representing a 4.8% year-over-year growth, which will help the company maintain its market share in the competitive fast-food industry and bolster investor confidence.
- Performance Beat Record: Over the past two years, QSR has beaten EPS and revenue estimates 63% of the time, showcasing the company's financial stability and effective management execution, which may attract more investor interest.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 9 upward and 9 downward revisions, while revenue estimates experienced 14 upward and 5 downward revisions, indicating market caution regarding the company's future performance and providing potential buying opportunities for investors.
See More
Analysis of Major Premarket Trading Moves by Companies
- Restaurant Brands Performance: Restaurant Brands reported fourth-quarter earnings of $0.96 per share, exceeding expectations by $0.01, with revenue of $2.47 billion surpassing the $2.41 billion consensus, leading to a 1.3% stock increase, indicating strong financial performance and market confidence.
- Anheuser-Busch Growth: Anheuser-Busch's fourth-quarter earnings reached $0.95 per share, beating the $0.90 analyst estimate, with revenue of $15.56 billion exceeding the $14.95 billion consensus, resulting in a 2.6% stock rise, reflecting robust growth in a competitive beer market.
- Cisco Decline: Cisco's non-GAAP gross margin of 67.5% fell short of the 68.1% expectation, despite second-quarter results exceeding estimates, causing a stock drop of about 7%, highlighting market concerns over its profitability.
- Cloud Computing Surge: Fastly's stock surged 44% after reporting adjusted earnings of $0.12 per share and revenue of $172.6 million, both exceeding expectations, with full-year revenue guidance of $700 million to $720 million far surpassing the $668 million market estimate, showcasing strong demand and growth potential.
See More
Restaurant Brands International Reports 5.8% Sales Growth in Q4
- International Sales Highlight: Restaurant Brands International achieved a system-wide sales growth of 5.8% in Q4, with international locations, particularly Burger King, showing strong performance with same-store sales growth of 5.8%, laying a solid foundation for future expansion.
- Strong Financial Performance: The company reported adjusted EBITDA of $772 million, a significant increase from $66 million a year ago, demonstrating substantial improvements in cost control and operational efficiency, which further bolsters investor confidence.
- Optimistic Future Outlook: CEO Josh Kobza indicated that comparable sales growth is expected to reach 3% in 2026, with organic adjusted operating income growth exceeding 8%, reflecting a positive long-term growth strategy that enhances market confidence in the company's future.
- Cautious Market Reaction: Despite exceeding earnings expectations, shares of Restaurant Brands International fell 2.4% in premarket trading to $69.01, indicating a cautious market sentiment that may influence short-term investor decisions amid broader economic concerns.
See More
Restaurant Brands International Q4 Earnings Exceed Expectations
- Earnings Beat: Restaurant Brands International (QSR) reported a Q4 Non-GAAP EPS of $0.96, exceeding expectations by $0.01, indicating stable profitability and increased market confidence.
- Significant Revenue Growth: The company achieved Q4 revenue of $2.47 billion, a 7.4% year-over-year increase, surpassing market expectations by $60 million, demonstrating strong growth momentum in a competitive fast-food market.
- Future Spending Plans: The company anticipates segment G&A (excluding RH) for 2026 to be between $600 million and $620 million, with RH segment G&A around $100 million, reflecting a clear investment strategy for future growth.
- Long-Term Growth Outlook: Restaurant Brands expects comparable sales growth of over 3% and organic adjusted operating income growth of over 8% from 2024 to 2028, aiming for over 5% net restaurant growth by the end of its algorithm period, showcasing confidence in future market opportunities.
See More
Restaurant Brands International Reports Decline in Q4 Profit
- Profit Decline: Restaurant Brands International reported a net profit of $113 million for Q4, translating to $0.34 per share, a significant drop from last year's $259 million and $0.79 per share, indicating pressure on profitability.
- Adjusted Earnings: Excluding special items, the company reported adjusted earnings of $441 million or $0.96 per share, showing resilience in adjusted performance, yet overall profitability remains under strain.
- Revenue Growth: The total revenue for Q4 reached $2.466 billion, up 7.4% from $2.296 billion last year, demonstrating sales resilience despite the profit decline.
- Market Reaction: The substantial profit drop has led to cautious market sentiment regarding Restaurant Brands International's future outlook, potentially impacting its stock performance and investor confidence.
See More
Restaurant Brands International Reports Strong Quarterly Earnings Exceeding Expectations
- Earnings Beat: Restaurant Brands International reported adjusted earnings of 96 cents per share for Q4, surpassing Wall Street's expectation of 95 cents, indicating strong growth potential in international markets.
- Significant Revenue Growth: The company posted a net income of $113 million for the fourth quarter, down from $259 million a year earlier, yet net sales rose 7.4% to $2.47 billion, reflecting robust market demand.
- Same-Store Sales Performance: International same-store sales increased by 6.1%, significantly exceeding analyst expectations of 3.7%, with Burger King's international same-store sales growing by 5.8%, showcasing the brand's competitiveness in global markets.
- Strategic Expansion Plans: Restaurant Brands plans to accelerate Burger King's expansion in China through a joint venture with Chinese asset manager CPE, further solidifying its position in rapidly growing markets.
See More
