What To Expect From Restaurant Brands’ Stock Past Q2 Results?

Restaurant Brands International Inc. stock (NYSE: QSR) is one of the largest fast-food restaurant chains in the world and it is a combination of Burger King, Tim Hortons, Popeyes, and, since late 2021, also Firehouse Subs. The company is scheduled to report its fiscal second-quarter results on Tuesday, August 8. We expect QSR’s stock to likely trade lower due to both revenues and earnings missing expectations marginally in its second-quarter results. The fast-food giant’s next few quarters might show high volatility given the current macroeconomic situation. However, the company showcases solid mid-to-long-term growth prospects. The revenue stream of QSR is directly influenced by the system sales it generates across its brands, which can be increased by growing restaurant sales or adding as many restaurants as possible. Also, Tim Hortons, Popeyes, and Firehouse Subs are far less penetrated across international markets than McDonald’s or Burger King. That means more room to open new restaurants and a longer runway for revenue growth.

Our forecast indicates that Restaurant Brands’ valuation is $68 per share, which is nearly 7% lower than the current market price. Look at our interactive dashboard analysis on Restaurant Brands Earnings Preview: What To Expect in Fiscal Q2? for more details.