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Axel Schwan, President of Tim Hortons Americas at Restaurant Brands International Inc. (NYSE:QSR), recently reported a transaction involving the company's common shares. On January 6, Schwan sold 5,019 shares at a price of $64.20 each, resulting in a total transaction value of $322,247. The transaction comes as QSR trades near its 52-week low of $63.09, with InvestingPro analysis suggesting the stock is currently undervalued.
Following this sale, Schwan's direct ownership of Restaurant Brands International shares now stands at 105,311. This transaction comes after a series of acquisitions on January 3, where Schwan acquired various performance and restricted share units, although these were not associated with a cash transaction. The company maintains a healthy dividend yield of 3.67% and trades at a P/E ratio of 15.7.
Restaurant Brands International, the parent company of Tim Hortons, continues to be a significant player in the retail-eating places sector, with Schwan's transactions marking notable movements in its executive-level stock holdings. With a market capitalization of $28.46 billion and a "GOOD" financial health score from InvestingPro, which offers comprehensive analysis and 10 additional exclusive tips for QSR investors.
In other recent news, Bernstein, a market analysis firm, has identified potential investment opportunities in U.S. restaurant stocks, specifically Chipotle Mexican Grill (NYSE:CMG) and Wingstop (NASDAQ:WING), due to their exceptional value propositions and industry outperformance. Bernstein's analysis, which represents an approximate enterprise value of $735 billion, shows a year-on-year decline in same-store sales (SSS) of 1.0%, though recent data suggests the sector may be recovering from the worst of the decline.
On the other hand, Restaurant Brands International (RBI) has seen a reduction in its price target from KeyBanc, following the company's third-quarter results for 2024 which fell short of expectations. Despite this, KeyBanc maintains an Overweight rating on RBI's stock, indicating a positive stance on the company's long-term growth potential. The firm also adjusted its 2025 earnings per share (EPS) estimate for RBI to $3.77.
In terms of earnings, RBI reported a modest growth in the third quarter of 2024, with a 0.3% increase in comparable sales and a rise in net restaurant growth. The company generated $485 million in free cash flow and saw an adjusted EPS increase of 4.6% to $0.93. RBI also introduced a new segment, Restaurant Holdings, and has been focusing on digital sales, which now represent nearly 20% of total sales.
These recent developments highlight the resilience of RBI and its strategic focus on digital sales, franchisee profitability, and international expansion. Despite facing regional challenges, particularly in the U.S. and China, RBI remains optimistic about its long-term growth prospects.
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