Oppenheimer analyst Brian Bittner reiterated an Outperform rating on the shares of Restaurant Brands International Inc (NYSE: QSR) with a price target of $81. The analyst installed QSR as one of the top picks entering 2023, anticipating a unique path for earnings upside in ’23/’24, and catalysts to accelerate unit growth above Street’s 5% forecasts. The analyst added that the guidance appears conservative, particularly when incorporating cold beverages, food innovation and digital momentum. An analysis of datapoints from peers suggests 4Q22E same-store sales are positioned for upside in both international and U.S. While International is performing at an elite level (SSS +20% vs 2019), the choppy domestic business finally has a strategic plan for multi-year improvement through “Reclaim the Flame,” said the analyst. The analyst believes the newly appointed Executive Chairman, Patrick Doyle, will bring a sharper focus to accelerate sales, improve unit economics and create shareholder value. The analyst sees QSR as an undervalued growth opportunity with near-term fundamental catalysts for higher earnings forecasts and multiple expansion. Price Action: QSR shares are trading higher by 0.06% at $67.37 on the last check Friday.
Latest Ratings for QSR
|Stephens & Co.
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