Restaurant Brands stock price target raised to $74 by TD Cowen

Investing.com - TD Cowen raised its price target on Restaurant Brands International (NYSE:QSR) to $74.00 from $70.00 on Friday, while maintaining a Hold rating on the stock. The $30.4 billion quick-service restaurant giant, which InvestingPro data shows has raised dividends for 10 consecutive years, currently offers a 3.7% yield.

The firm’s updated outlook reflects expectations that Burger King’s third-quarter 2025 same-store sales will reach 3.3%, exceeding the previous Consensus Metrix estimate of 2%, based on the firm’s market checks.

TD Cowen noted accelerating performance throughout the quarter, starting with July’s limited-time BBQ Brisket Whopper, followed by August’s Crispy Onion Whopper, and continuing into September when the chain achieved flat to slightly positive traffic.

The firm highlighted that Burger King’s improved third-quarter performance occurred without changing its strategic focus following McDonald’s relaunch of Extra Value Meals, though Burger King did shift more advertising toward its existing $5 Duos & $7 Trios value platform.

The new $74 price target is based on approximately 15x FY2 EV/EBITDA, representing a 1x discount versus the 5-year historical average, which TD Cowen justified by citing the "challenged development backdrop" expected to persist until 2028 and Burger King’s multi-year sales performance relative to quick-service peers.

In other recent news, Restaurant Brands International reported its second quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $0.94, which fell short of the forecasted $0.97. Despite this shortfall in EPS, the company achieved a revenue of $2.41 billion, surpassing expectations of $2.34 billion. These recent developments highlight the mixed financial results for the company. The financial community will be closely watching how Restaurant Brands International navigates these results moving forward. The company’s performance in revenue suggests resilience, even as the EPS did not meet projections. Investors and analysts may be particularly interested in how the company plans to address the EPS miss while maintaining strong revenue growth.

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