Yahoo Finance Restaurant Brands International Inc. (NYSE:QSR) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Restaurant Brands International Inc. (NYSE:QSR) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of US$1.7b arriving 2.2% ahead of forecasts. Statutory earnings per share (EPS) were US$0.72, 4.6% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Restaurant Brands International
Following the latest results, Restaurant Brands International's 14 analysts are now forecasting revenues of US$7.53b in 2024. This would be a modest 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to descend 16% to US$3.26 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.49b and earnings per share (EPS) of US$3.67 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$85.66, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Restaurant Brands International at US$94.00 per share, while the most bearish prices it at US$72.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Restaurant Brands International's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Restaurant Brands International'shistorical trends, as the 6.7% annualised revenue growth to the end of 2024 is roughly in line with the 6.6% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.7% annually. So although Restaurant Brands International is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Restaurant Brands International. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$85.66, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Restaurant Brands International going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Restaurant Brands International (including 1 which doesn't sit too well with us) .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
