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Here's What to Expect from Restaurant Brands (QSR) Q4 Earnings

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Restaurant Brands International Inc. (QSR - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 14, before the opening bell.

In the last-reported quarter, the company delivered an earnings and revenue surprise of 20% and 3.3%, respectively. The metrics increased 26.3% and 15.5% on a year-over-year basis, respectively.

Further, it came up with a trailing four-quarter beat of 10.7%, on average.

How Are Estimates Placed?

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 72 cents per share, indicating a decline of 2.7% from 74 cents recorded in the year-ago quarter. For revenues, the consensus mark is pegged at $1,668 million, suggesting an increase of 7.9% from the year-ago reported figure.

Let's take a look at how things have shaped up before the announcement.

Factors at Play

Restaurant Brands’ fourth-quarter revenues are likely to have benefited from initiatives like digital enhancement, menu innovation and product expansion. Also, the company’s revenues are expected to have been driven by strong brand-building efforts and a rapidly growing business model.

QSR is witnessing positive results post-COVID pandemic, with growth in same-store sales and digital sales. The strong digital enhancement and emphasis on omnichannel guest experience through loyalty programs are likely to have improved comps in the to-be-reported quarter.

Yet, the bottom line is likely to have been under pressure due to the post-pandemic effects on the industry, higher labor and commodity costs and a highly competitive market.

Focus on Non-Financial Metrics

The Zacks Consensus Estimate for consolidated system-wide sales growth is 8.5%. The consensus estimate for franchise and property revenues of $6.9 billion indicates 5.5% growth from the year-ago period’s reported value. The consensus mark for sales is pegged at $7 billion, suggesting a rise of 6.4% from the year-ago period’s reported value.

What Our Model Says

Our proven model predicts an earnings beat for Restaurant Brands this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.

Earnings ESP: Restaurant Brands has an Earnings ESP of +2.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Retail - Restaurants space that investors may also consider as our model shows that these have the right combination of elements to post an earnings beat in the upcoming releases:

Carrols Restaurant Group, Inc. currently has an Earnings ESP of +39.54% and a Zacks Rank #2.

Shares of Carrols Restaurant have gained 19% in the past three months. TAST has a trailing four-quarter average negative earnings surprise of 110.8%.The Zacks Consensus Estimate for the quarter to be reported suggests an earnings decline.

Papa John's International, Inc. (PZZA - Free Report) currently has an Earnings ESP of +2.10% and a Zacks Rank #3.

Shares of Papa John’s have gained 12.3% in the past three months. PZZA has a trailing four-quarter average negative earnings surprise of 0.7%.The Zacks Consensus Estimate for the quarter to be reported indicates an earnings decline.

Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +8.08% and a Zacks Rank #3.

Shares of Shake Shack have gained 14.9% in the past six months. SHAK has a trailing four-quarter average earnings surprise of 37.2%. In the quarter to be reported, its earnings are likely to remain flat year over year, per the consensus mark.


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