Stock of the Day

August 29, 2023

Restaurant Brands International (QSR)

$62.26
-$0.95 (-1.5%)
Market Cap: $20.51B

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.

Restaurant Brands International Bull Case

Here are some ways that investors could benefit from investing in Restaurant Brands International Inc.:

  • The stock price recently reached $62.01, showing a slight increase of 0.5%, which may indicate positive market sentiment.
  • Restaurant Brands International Inc. has a diverse portfolio, operating well-known brands like Tim Hortons, Burger King, and Popeyes, which can help mitigate risks associated with reliance on a single brand.
  • Analysts have a consensus rating of "Moderate Buy" for the stock, with an average price target of $80.00, suggesting potential for price appreciation.
  • Insider trading activity indicates confidence in the company, with insiders selling a total of 113,510 shares worth $7,774,020 in the last three months, which can be interpreted as a strategic move rather than a lack of confidence.
  • The company has a market capitalization of $20.12 billion, indicating a strong position in the market, which can attract institutional investors.

Restaurant Brands International Bear Case

Investors should be bearish about investing in Restaurant Brands International Inc. for these reasons:

  • Recent insider sales, including a 2.66% decrease in ownership by Jill Granat, may raise concerns about the company's future performance from those who are most familiar with it.
  • The company has a relatively high debt-to-equity ratio of 2.75, which indicates that it relies heavily on debt financing, potentially increasing financial risk.
  • Several analysts have recently lowered their target prices for the stock, indicating a cautious outlook on its near-term performance.
  • With a price-to-earnings (P/E) ratio of 15.55, the stock may be considered overvalued compared to industry peers, which could deter value-focused investors.
  • Insider ownership is only 1.36%, which may suggest a lack of alignment between management and shareholder interests, potentially impacting long-term strategic decisions.

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