NEW YORK (TheStreet) -- Shares of Restaurant Brands (QSR - Get Report) were increasing in mid-afternoon trading today after the owner of Burger King and Tim Horton's posted better-than-expected second quarter earnings before today's opening bell.
Restaurant Brands reported earnings of 38 cents per share, surpassing Wall Street's projected 35 cents per share. Revenue for the Canadian fast food company came in at $1.04 billion, falling just short of analysts' expected $1.05 billion.
For the same period last year, Restaurant Brands posted earnings of 30 cents per share on revenue of $1.04 billion.
Tim Hortons' same store sales grew 2.7%, while Burger King's same store sales increased 0.6% in 2016. Both fell short of Wall Street's expectations, which were for 3.5% and 2.2% growth, respectively.
The company attributed Burger King's lower-than-expected same-store sales growth to softer markets in the U.S. and Canada.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate RESTAURANT BRANDS INTL INC as a Hold with a ratings score of C+. 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 compelling growth in net income, impressive record of earnings per share growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.
You can view the full analysis from the report here: QSR