Gold bars to be exempt from tariffs, White House clarifies
Investing.com - RBC Capital lowered its price target on Restaurant Brands International (NYSE:QSR) to $77.00 from $80.00 on Friday, while maintaining an Outperform rating on the stock. According to InvestingPro data, the company currently trades at a P/E ratio of 25.9x, with 8 analysts recently revising their earnings estimates upward for the upcoming period.
The adjustment follows what RBC Capital described as a "mixed" second-quarter performance from the fast-food holding company, which owns brands including Burger King and Tim Hortons. The company has maintained a strong dividend track record, having raised dividends for 10 consecutive years, with a current yield of 3.8%.
The firm highlighted positive results from Tim Hortons, which delivered same-store sales that exceeded expectations with "strength across dayparts." RBC also noted improving trends at Burger King China and international segment performance that surpassed Street expectations. This aligns with the company’s impressive 22.4% revenue growth over the last twelve months. InvestingPro analysis indicates the company appears undervalued based on its Fair Value calculation.
Less encouraging was the performance of Burger King’s U.S. operations, which RBC indicated has been "an outsized driver of the stock relative to its contribution to profitability." The firm expressed concern that "investor consternation around a slowing US consumer and intense competition impacting BK US is unlikely to abate."
RBC Capital warned that further consumer slowdown "could result in SSS downside and/or share loss," factors that are "somewhat out of the company’s control," leading to the analyst’s decision to adjust estimates and reduce the price target.
In other recent news, Restaurant Brands International has been the focus of several analyst assessments. Bernstein SocGen Group reiterated its Outperform rating on the company, with a price target of $80, praising the second-quarter performance of Tim Hortons. Melius Research initiated coverage with a Buy rating and set a higher price target of $90, highlighting the company’s growth phase across its brand portfolio, including Burger King and Popeyes. Truist Securities also raised its price target to $81 while maintaining a Buy rating, projecting that Burger King’s U.S. same-store sales will surpass consensus estimates for the second quarter of 2025. Loop Capital echoed this sentiment, reiterating a Buy rating and a $93 price target, noting stronger-than-expected sales at Burger King locations. Meanwhile, Scotiabank (TSX:BNS) assumed coverage with a Sector Perform rating and a $75 price target, citing the company’s franchised structure and valuation as factors limiting downside risk. These recent developments reflect a varied but generally positive outlook from analysts regarding Restaurant Brands International’s performance and potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.