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Restaurant Brands International Inc. (NYSE:QSR), the parent company of fast-food giants such as Burger King and Tim Hortons, has seen its stock price touch a 52-week low, dipping to $59.65. According to InvestingPro data, the stock has fallen sharply by 7.68% in the past week, though the company maintains a solid market capitalization of $27.12 billion and offers an attractive 4% dividend yield. This latest price level reflects a significant downturn in the company's market valuation over the past year, with the stock experiencing a 1-year change of -19.25%. The decline in stock value comes amidst a challenging period for the restaurant industry, which has been grappling with fluctuating consumer demand, supply chain issues, and rising operational costs. Despite these challenges, InvestingPro analysis indicates the stock is currently undervalued, with the company demonstrating resilience through impressive revenue growth of 19.71% and maintaining its decade-long streak of consecutive dividend increases. Investors and analysts are closely monitoring the company's performance and strategic initiatives as it navigates through these headwinds. For deeper insights into QSR's valuation and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.
In other recent news, Restaurant Brands International has acquired Burger King China for approximately $158 million, securing near-total ownership of the business. The company plans to find a new local partner to inject primary capital, with the new partner becoming the controlling shareholder. Restaurant Brands International reported a stronger-than-expected fourth-quarter performance, with a 2.5% increase in global sales, surpassing JPMorgan's estimate of 1.6%. BMO Capital noted the company's earnings per share of $0.81 exceeded the consensus estimate of $0.78, highlighting strong international comparable sales and higher profitability at Tim Hortons.
JPMorgan maintained an Overweight rating with an $80 price target, while BMO Capital reiterated an Outperform rating with an $86 target, citing the company's strategic positioning and potential for growth. Guggenheim increased its price target for Restaurant Brands to $77, acknowledging strong remodel data from Burger King. However, TD Cowen downgraded the stock from Buy to Hold, setting a $70 target, due to potential challenges in the Canadian market and increased competition in the fast-food industry. These developments reflect a mix of optimism and caution among analysts regarding Restaurant Brands International's future performance.
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