JPMorgan raises Restaurant Brands price target to $80

On Friday, JPMorgan analyst John Ivankoe adjusted the price target for Restaurant Brands International (NYSE:QSR) shares, increasing it from $78.00 to $80.00. The firm continues to endorse an Overweight rating on the stock. According to InvestingPro data, the company currently trades at a P/E ratio of 21.2x and appears undervalued based on its Fair Value analysis.

Ivankoe’s adjustment followed the review of Restaurant Brands’ first-quarter financial performance for the year 2025. The company, which is the parent of popular chains such as Burger King and Tim Hortons, reported a slight decline in Burger King’s U.S. comparable sales (comps) of -1.1% and a marginal increase in Tim Hortons Canada comps of 0.1%. These figures included a 100 basis point impact from the leap day. Nonetheless, Restaurant Brands experienced a positive net restaurant development of 3.3%. The company has demonstrated strong revenue growth, with InvestingPro data showing a 22.4% increase in the last twelve months.

The analyst pointed out that despite the mixed comps, the company’s effective cost containment strategies have allowed it to maintain an 8% operating income growth algorithm. Furthermore, Ivankoe highlighted the company’s capital expenditure guidance through fiscal year 2029, which bolsters confidence in Restaurant Brands’ ability to sustain its current dividend yield of approximately 3.7%. Notably, InvestingPro data reveals the company has raised its dividend for 10 consecutive years, with a 12.7% dividend growth in the last twelve months.

Looking ahead, Ivankoe has set a December 2026 price target of $80 for Restaurant Brands International. This target is based on a 4.75% free cash flow yield for fiscal year 2029, which is then discounted back two years at a rate of 7%. The analyst’s commentary suggests a positive outlook on the company’s ability to manage costs and generate growth, supporting the firm’s decision to raise the price target while maintaining a favorable stock rating. With an overall Financial Health score of "GOOD" and multiple additional ProTips available, investors can access comprehensive analysis and valuation metrics through Restaurant Brands’ detailed Pro Research Report, available exclusively on InvestingPro.

In other recent news, Restaurant Brands International reported a 2.5% increase in global sales for the fourth quarter of fiscal year 2024, exceeding JPMorgan’s estimate of 1.6%. This performance led JPMorgan to maintain an Overweight rating on the stock with a price target of $80. Meanwhile, the company has acquired the equity interests in Burger King China for approximately $158 million, marking a significant expansion in the Chinese market. Guggenheim analyst Gregory Francfort raised the price target for Restaurant Brands International shares to $77, reiterating a Buy rating. However, TD Cowen analysts downgraded the stock from Buy to Hold, setting a price target of $70 due to perceived fair valuation and potential challenges in the Canadian market. Additionally, Restaurant Brands International released its "Restaurant Brands for Good" report, detailing its corporate responsibility and sustainability efforts. The report highlights initiatives in sustainable sourcing, waste reduction, and community engagement. These recent developments reflect Restaurant Brands International’s strategic efforts to enhance its market presence and align with sustainability goals.

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