"The pace of menu innovation at Tim Hortons has fallen back since past year, when the company introduced new lunchtime options and Nutella pockets", Neil Saunders, managing director of research firm GlobalData Retail said in a note, calling Burger King the "star of the show".
Burger King operator Restaurant Brands International Inc. said its fourth-quarter sales rose, driven by growth in its franchise business. USA -listed shares of Restaurant Brands rose as much as 2.5 percent to a record $52.73. The average stock price target is $52.11 with 1 broker rating the stock a strong buy, 4 brokers rating the stock a buy, 6 brokers rating the stock a hold, 0 brokers rating the stock a underperform, and finally 0 brokers rating the company a sell.
Restaurant Brands, the owner of Burger King and Tim Hortons, reported a higher-than-expected quarterly profit as comparable sales at its burger chain topped estimates and costs fell. Huntington National Bank boosted its position in Restaurant Brands International by 46,600.0% in the second quarter. With a combined system sales of more than $24 billion, the new company now has over 20,000 restaurants in around 100 countries. The consensus recommendation by Thomson Reuters analysts is Outperform and their mean rating for the stock is 2.33 on scale of 1-5. Systemwide sales - which include revenue from franchised stores - grew 2.4% at Tim Hortons and 8.5% at Burger King. Analysts expect that Restaurant Brands International will post $1.75 EPS for the current year. Gross Margin percentage stands at 0% while its Operating Margin for trailing twelve month is 0 percent and Profit margin (ttm) is 0 Percent.
Restaurant Brands is now the parent company of these two iconic quick service restaurant brands.
Popeyes, whose fans include pop singer Beyoncé, began 45 years ago as a Southern-fried "Chicken on the Run" restaurant in a New Orleans suburb.
That expansion is not limited to the global market either; Tim Hortons's US locations are now situated in border states, but a broader expansion is starting to take shape.
The approach to expansion that Tim Hortons has adopted mirrors what Burger King has used and been very successful with. Analysts mean target price for Restaurant Brands International Inc.
Is Restaurant Brands a good investment?
That being said, strong returns, an aggressive and, to date, successful expansion plan, and an increasing dividend all make Restaurant Brands a likely candidate for nearly any portfolio.
One of the often-cited concerns relating to Restaurant Brands is the amount of debt the company carries.
Fool contributor Demetris Afxentiou has no position in any stocks mentioned. (NYSE:QSR) has climbed 3.5% in the past week and advanced 3.32% in the last 4 weeks.
Restaurant Brands International (NYSE:QSR) opened at 53.80 on Tuesday.
Many research firms have provided their ratings on Restaurant Brands International Inc.