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Investing.com - Melius Research initiated coverage on Restaurant Brands International (NYSE:QSR) with a Buy rating and a price target of $90.00 on Monday. The $30.6 billion quick-service restaurant company currently trades at a P/E ratio of 22.8x and offers a 3.7% dividend yield, having raised its dividend for 10 consecutive years according to InvestingPro.
The research firm highlighted that Restaurant Brands is building its next growth phase across its portfolio of Burger King, Tim Hortons, Popeyes, and Firehouse Subs brands. The company’s strategy appears to be paying off, with impressive revenue growth of 22.4% over the last twelve months.
Melius noted that the turnaround in Burger King US and China operations is currently underway, while the company’s other Burger King locations and Tim Hortons are delivering strong results.
The firm emphasized that the company’s portfolio mix of mature profit drivers and early-stage growth engines creates multiple paths to success over time and provides franchisee partners with various avenues to continue growth in their markets.
Melius stated that the current valuation of Restaurant Brands International underappreciates the breadth and durability of the company’s global platform.
In other recent news, Restaurant Brands International has been the focus of several analyst reports and company developments. Truist Securities raised its price target for the company to $81.00, maintaining a Buy rating, citing expected strong U.S. same-store sales growth at Burger King. This optimism is supported by menu innovations like the "Dragon Whopper." Similarly, Loop Capital reiterated its Buy rating with a $93.00 price target, noting Burger King’s same-store sales are exceeding expectations in the current quarter. Scotiabank (TSX:BNS) assumed coverage with a neutral Sector Perform rating and a $75.00 price target, highlighting the company’s franchised structure and potential benefits from consumer trade-down.
In corporate governance, Restaurant Brands International announced that all its Board of Directors’ nominees were re-elected at its Annual Meeting of Shareholders, with a significant voter turnout. Additionally, the company warned shareholders about an unsolicited mini-tender offer from New York Stock and Bond LLC, which is priced significantly below market value. The company emphasized that it is not affiliated with this offer and advised shareholders against participating. These developments reflect ongoing strategic and operational activities at Restaurant Brands International.
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