Back to top

Image: Bigstock

Restaurant Brands (QSR) Q3 Earnings & Revenues Beat Estimates

Read MoreHide Full Article

Headquartered in Miami, FL, Restaurant Brands International, Inc. (QSR - Free Report) came into existence with the merger of Tim Hortons Inc. and Burger King Worldwide Inc. These independently operated brands have been serving their customers for more than 50 years.

Notably, with the acquisition of Popeyes Louisiana Kitchen, the company now has three operating segments: Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. The acquisition of Popeyes has added a booming, highly-regarded brand to Restaurant Brands that has a distinctive position within a compelling segment along with strong customer loyalty and riveting prospects for growth in the United States and internationally.

The company believes that there is an attractive opportunity to grow all is brands around the world by expanding its presence in existing markets as well as entering new markets. Yet, rising labor costs along with negative currency translation has been denting the company’s profitability. Meanwhile, a soft consumer spending environment in the U.S. restaurant space remains a cause of concern.

Investors should note that the consensus estimate for QSR has hardly witnessed any significant movement over the last 60 days. Meanwhile, QSR’s earnings have been strong over the past few quarters. In fact, the company posted positive earnings surprises consecutively in each of the last four quarters, with an average beat of 6.46%. Revenues also outpaced the Zacks Consensus Estimate in three of the trailing four quarters.

Currently, QSR has a Zacks Rank #2 (Buy) but that could change following Restaurant Brands earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: QSR beat on earnings. Our consensus earnings estimate called for EPS of 49 cents per share, and the company posted adjusted EPS of 58 cents.

Revenues: QSR reported revenues of $1.21 billion. This surpassed our consensus estimate of $1.19 billion.

Key Stats to Note: In third-quarter 2017, comparable sales at Tim Hortons and Burger King increased 0.3% and 3.6%, respectively, at constant currency. Comps at Popeyes decreased 1.8% in the quarter. Adjusted EBITDA of $565.1 million was up 7.6% on an organic basis versus prior year results (including Popeyes).

Stock Price: Inactive in pre-market trading.

Check back later for our full write up on this QSR earnings report!

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.      

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.   

See the pot trades we're targeting>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Restaurant Brands International Inc. (QSR) - free report >>

Published in