Restaurant Brands stock price target raised by Truist on Burger King turnaround

Published 09/07/2025, 15:38
Restaurant Brands stock price target raised by Truist on Burger King turnaround

Investing.com - Truist Securities raised its price target on Restaurant Brands International (NYSE:QSR) to $81.00 from $78.00 on Wednesday, while maintaining a Buy rating on the stock. The company, currently valued at $30.8 billion, has demonstrated strong fundamentals with a 22.4% revenue growth over the last twelve months and offers a compelling 3.64% dividend yield. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

The firm expects Burger King’s U.S. same-store sales to beat consensus estimates for the second quarter of 2025, projecting growth of 2.5% compared to analyst expectations of 1.5%.

Truist cited the effectiveness of menu innovation in the fast food sector, specifically highlighting the "Dragon Whopper" which launched on May 27, with additional new menu items scheduled to launch next week.

The firm believes Burger King’s U.S. turnaround is "well underway," driven by improved operations, menu innovation, and restaurant remodels.

Restaurant Brands stock has outperformed McDonald’s (NYSE:MCD) year-to-date, gaining 4.6% compared to McDonald’s 0.6% increase, though Truist still sees further upside potential heading into earnings.

In other recent news, Restaurant Brands International has been the focus of several developments. Loop Capital reiterated its Buy rating and a $93 price target for the company, citing stronger-than-expected sales at Burger King. Their analysis indicates that Burger King’s same-store sales in the second quarter of 2025 are tracking ahead of expectations, with growth accelerating significantly in recent weeks. Meanwhile, Scotiabank (TSX:BNS) assumed coverage with a Sector Perform rating and a $75 price target, highlighting the company’s highly franchised structure and potential benefits from consumer trade-down. KeyBanc Capital Markets maintained an Overweight rating with a $78 price target, even after Restaurant Brands reported first-quarter earnings that fell short of expectations, citing potential for growth in adjusted operating income. Additionally, the company warned shareholders about an unsolicited mini-tender offer from New York Stock and Bond LLC, which aims to acquire shares at a price significantly below market value. Restaurant Brands advised shareholders against participating in this offer. Furthermore, the company announced that its Board of Directors’ nominees were re-elected at its Annual Meeting of Shareholders, with a significant turnout of over 401 million votes cast.

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