The firm maintained its "neutral" rating on the stock.
On Monday morning, shares are gaining by 0.12% to $41.54.
Analysts stated that same-store-sales growth in the latest quarter beat their expectations. Time Hortons same-store-sales gained by 5.5% and Burger King same-store sales rose by 6.7%, according to the firm's note.
In addition, other catalysts for further share price appreciation include announcements for master or other franchisee agreements for Tim Hortons, analysts stated.
Restaurant Brands is the operator of quick service restaurants under the Burger King and Tim Hortons brand names.
Separately, TheStreet Ratings team rates RESTAURANT BRANDS INTL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RESTAURANT BRANDS INTL INC (QSR) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- QSR's very impressive revenue growth greatly exceeded the industry average of 5.0%. Since the same quarter one year prior, revenues leaped by 286.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, QSR's share price has jumped by 49.62%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- 44.71% is the gross profit margin for RESTAURANT BRANDS INTL INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.50% trails the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, RESTAURANT BRANDS INTL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- RESTAURANT BRANDS INTL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RESTAURANT BRANDS INTL INC swung to a loss, reporting -$1.30 versus $0.66 in the prior year.
- You can view the full analysis from the report here: QSR Ratings Report