Back to top

Image: Bigstock

Restaurant Brands (QSR) to Post Q4 Earnings: What's in Store?

Read MoreHide Full Article

Restaurant Brands International Inc. (QSR - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 13, 2024, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 7.1%.

Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 73 cents, indicating growth of 1.4% from 72 cents in the year-ago quarter.

The consensus mark for revenues is pegged at $1.80 billion, suggesting an increase of 6.7% from the prior-year quarter’s reported figure.

Factors to Note

Restaurant Brands’ fourth-quarter results are likely to gain from expansion efforts, robust comps growth, strong digital ordering and menu innovation. Strategic investments and pricing initiatives are likely to have aided the company’s performance in the to-be-reported quarter.

QSR's focus on Tim Horton’s positioning in Canada through enhancing core platforms, product innovation and leveraging technology are likely to have paved the path for improved sales in the segment. Our model estimates fourth-quarter Tim Horton’s revenues to increase 7.7% from the year-ago levels to $1.07 billion.

Per our model, fourth-quarter Popeyes Louisiana Kitchen and Firehouse Subs revenues are estimated to be $175.4 million and $46.3 million, suggesting an increase of 3.2% and 28.7% from the prior-year actuals, respectively.

However, high labor and commodity costs are likely to have negatively impacted the company’s margin.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Restaurant Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Restaurant Brands has an Earnings ESP (difference between the Most Accurate Estimate and the Zacks Consensus Estimate) of +0.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Restaurant Brands currently carries a Zacks Rank #2.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these, too, have the right combination of elements to beat on earnings this season.

Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +4.39% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PLAY’s earnings for the quarter under review are expected to increase 42.5%. It reported better-than-expected earnings in three of the trailing four quarters and in line on the remaining one occasion, the average surprise being 34.5%.

Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 2.

DRI is expected to register 12.8% growth in earnings for the quarter to be reported. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.2%.

Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank of 3.

JACK’s earnings for the to-be-reported quarter are expected to decline 3%. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 10.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in