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Investing.com - Restaurant Brands International (NYSE:QSR) stock rose Tuesday after Loop Capital reiterated its Buy rating and $93.00 price target, citing stronger-than-expected sales at Burger King locations. According to InvestingPro data, the company has maintained consistent dividend payments for 11 consecutive years, with a current dividend yield of 3.8%.
Loop Capital’s research indicates Burger King’s same-store sales are tracking ahead of expectations in the second quarter of 2025. According to the firm’s checks with U.S. franchisees, comparable sales accelerated from 1.0-1.5% growth during the first seven weeks of the quarter to 4.5-5.0% growth over the last five weeks. This growth momentum complements the company’s strong financial performance, with revenue growing 22.4% over the last twelve months to $8.8 billion.
This acceleration implies quarter-to-date same-store sales growth of 2.5-3.0%, exceeding both Loop Capital’s prior estimate of 2.0% growth and the consensus expectation of 1.5% growth. On a two-year stacked basis, the current quarter-to-date growth equates to a gain of 2.6-3.1%.
The two-year stacked performance is in line with Burger King’s reported 2.6-3.1% domestic stacks in the first quarter of 2025. The implied three-year stacks of 10.9-11.4% represent a slight deceleration from Burger King’s reported three-year stacks of 11.5% last quarter.
Loop Capital maintained its Buy rating and $93 price target on Restaurant Brands International, based on approximately 19.5 times its 2025 EV/EBITDA estimate for the company. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets ranging from $62 to $86. Get detailed insights and access to comprehensive Pro Research Reports covering 1,400+ top stocks through an InvestingPro subscription.
In other recent news, Restaurant Brands International reported first-quarter earnings that fell short of market expectations. Despite this, KeyBanc Capital Markets maintained an Overweight rating on the company, citing a positive long-term growth outlook and cost-saving measures. JPMorgan also adjusted its price target for Restaurant Brands, raising it from $78.00 to $80.00, while maintaining an Overweight rating. The firm noted the company’s effective cost management and projected operating income growth. Additionally, Scotiabank (TSX:BNS) assumed coverage on Restaurant Brands with a Sector Perform rating, acknowledging both potential growth opportunities and challenges in the current market environment. In corporate governance news, the company announced that all nominees for its Board of Directors were re-elected at the Annual Meeting of Shareholders. Restaurant Brands also issued a warning to shareholders regarding an unsolicited mini-tender offer from New York Stock and Bond LLC, advising against tendering shares below market value. These developments highlight the company’s ongoing strategic efforts and market positioning.
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