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Restaurant Brands (QSR) to Report Q2 Earnings: What to Expect?
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Restaurant Brands International Inc. (QSR - Free Report) is scheduled to report second-quarter 2023 results on Aug 8, 2023, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 19.1% and 2.3%, respectively. Earnings and revenues increased 17.2% and 9.5% from the year-ago quarter’s figures, respectively.
QSR surpassed earnings estimates thrice and remained at par with estimates once in the trailing four quarters, the average surprise being 12.9%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 76 cents, indicating a decline of 7.3% from 82 cents reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.75 billion, suggesting an increase of 6.5% from the prior-year quarter’s reported figure.
Restaurant Brands International Inc. Price and EPS Surprise
Restaurant Brand’s second-quarter top line is expected to have increased year over year on the back of unit expansion, strong digital ordering and a healthy balance of traffic and check. Also, focus on menu innovation, strategic investments and pricing initiatives are likely to have aided the company’s performance in the to-be-reported quarter.
QSR's focus on Tim Horton’s positioning in Canada through enhancing core platforms, product innovation and leveraging technology are likely to have paved the path for improved sales in the segment. Our model estimates second-quarter Tim Horton’s revenues to increase 6.4% year over year to $1,029.7 million.
Per our model, second-quarter Popeyes Louisiana Kitchen and Firehouse Subs revenues are estimated to be $166.1 and $38.9 million, suggesting an increase of $165 million and $33 million in the year-ago quarter, respectively.
Supply chain constraints and higher labor and commodity costs are likely to have affected the company’s bottom line in the to-be-reported quarter. Our model predicts total operating cost & expenses to increase 11.5% year over year to $1,223.8 million. We expect the adjusted EBITDA margin to contract 330 basis points (bps) to 34.4%.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Restaurant Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is precisely the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Restaurant Brands has an Earnings ESP of +0.82% and carries a Zacks Rank #3.
Other Stocks With Favorable Combinations
Here are some other companies in the Zacks Retail and Wholesale sector which, according to our model, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
ARHS’s earnings for the to-be-reported quarter are expected to decline 7.1%. The company reported better-than-expected earnings in all the trailing four quarters, the average surprise being 82.4%.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +2.07% and a Zacks Rank of #3.
COST’s earnings for the to-be-reported quarter are expected to increase 12.4%. The company reported better-than-expected earnings in three of the trailing four quarters and missed the mark once, the average surprise being 1.8%.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2.
JACK’s earnings for the to-be-reported quarter are expected to decline 3.6%. The company reported better-than-expected earnings in two of the trailing four quarters and missed the mark twice, the average surprise being 7.9%.
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Restaurant Brands (QSR) to Report Q2 Earnings: What to Expect?
Restaurant Brands International Inc. (QSR - Free Report) is scheduled to report second-quarter 2023 results on Aug 8, 2023, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 19.1% and 2.3%, respectively. Earnings and revenues increased 17.2% and 9.5% from the year-ago quarter’s figures, respectively.
QSR surpassed earnings estimates thrice and remained at par with estimates once in the trailing four quarters, the average surprise being 12.9%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 76 cents, indicating a decline of 7.3% from 82 cents reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.75 billion, suggesting an increase of 6.5% from the prior-year quarter’s reported figure.
Restaurant Brands International Inc. Price and EPS Surprise
Restaurant Brands International Inc. price-eps-surprise | Restaurant Brands International Inc. Quote
Factors to Note
Restaurant Brand’s second-quarter top line is expected to have increased year over year on the back of unit expansion, strong digital ordering and a healthy balance of traffic and check. Also, focus on menu innovation, strategic investments and pricing initiatives are likely to have aided the company’s performance in the to-be-reported quarter.
QSR's focus on Tim Horton’s positioning in Canada through enhancing core platforms, product innovation and leveraging technology are likely to have paved the path for improved sales in the segment. Our model estimates second-quarter Tim Horton’s revenues to increase 6.4% year over year to $1,029.7 million.
Per our model, second-quarter Popeyes Louisiana Kitchen and Firehouse Subs revenues are estimated to be $166.1 and $38.9 million, suggesting an increase of $165 million and $33 million in the year-ago quarter, respectively.
Supply chain constraints and higher labor and commodity costs are likely to have affected the company’s bottom line in the to-be-reported quarter. Our model predicts total operating cost & expenses to increase 11.5% year over year to $1,223.8 million. We expect the adjusted EBITDA margin to contract 330 basis points (bps) to 34.4%.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Restaurant Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is precisely the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Restaurant Brands has an Earnings ESP of +0.82% and carries a Zacks Rank #3.
Other Stocks With Favorable Combinations
Here are some other companies in the Zacks Retail and Wholesale sector which, according to our model, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
Arhaus, Inc. (ARHS - Free Report) currently has an Earnings ESP of +7.69% and sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ARHS’s earnings for the to-be-reported quarter are expected to decline 7.1%. The company reported better-than-expected earnings in all the trailing four quarters, the average surprise being 82.4%.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +2.07% and a Zacks Rank of #3.
COST’s earnings for the to-be-reported quarter are expected to increase 12.4%. The company reported better-than-expected earnings in three of the trailing four quarters and missed the mark once, the average surprise being 1.8%.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2.
JACK’s earnings for the to-be-reported quarter are expected to decline 3.6%. The company reported better-than-expected earnings in two of the trailing four quarters and missed the mark twice, the average surprise being 7.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.