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Restaurant Brands (QSR) Q4 Earnings: What's in the Cards?
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Restaurant Brands International Inc. (QSR - Free Report) is scheduled to report fourth-quarter and full-year 2016 numbers on Feb 13, before the opening bell.
Last quarter, Restaurant Brands posted a positive earnings surprise of 4.88%. In fact, the company has surpassed earnings estimates in each of the past four quarters, with an average beat of 19.62%.
Headquartered in Miami, FL, Restaurant Brands came into existence with the merger of Tim Hortons Inc. and Burger King Worldwide Inc. It is now the parent company of these two iconic quick-service restaurant brands. These independently operated brands have been serving customers for more than 50 years.
Restaurant Brands International Inc. Price and EPS Surprise
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence Q4 Results
The company has been witnessing comps growth at both the brands – Tim Hortons and Burger King – in the last few quarters backed by menu innovation, value meals, re-imaging and premium offerings. We expect these sales-boosting initiatives to aid fourth-quarter results as well.
We are also encouraged by the company’s augmented focus on enhancing guest experience and increasing franchisee profitability to create value for all of its stakeholders. Moreover, Restaurant Brands’ efforts to grow its global restaurant footprint at both its iconic brands should further boost the quarter’s performance.
However, costs incurred to establish both these brands in new markets as well as execute sales initiatives might dent the company’s profits in the to-be-reported quarter. Additionally, negative currency translation could keep earnings under pressure, while a soft consumer spending environment in the U.S. restaurant space might limit revenue growth.
Earnings Whispers
Our proven model does not conclusively show that Restaurant Brands is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Restaurant Brands has an Earnings ESP of +2.38%. This is because the Most Accurate estimate stands at 43 cents, while the Zacks Consensus Estimate is pegged lower at 42 cents.
Zacks Rank: Restaurant Brands has a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Papa John’s International, Inc. (PZZA - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #2.
The Priceline Group Inc. has an Earnings ESP of +0.46% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Restaurant Brands (QSR) Q4 Earnings: What's in the Cards?
Restaurant Brands International Inc. (QSR - Free Report) is scheduled to report fourth-quarter and full-year 2016 numbers on Feb 13, before the opening bell.
Last quarter, Restaurant Brands posted a positive earnings surprise of 4.88%. In fact, the company has surpassed earnings estimates in each of the past four quarters, with an average beat of 19.62%.
Headquartered in Miami, FL, Restaurant Brands came into existence with the merger of Tim Hortons Inc. and Burger King Worldwide Inc. It is now the parent company of these two iconic quick-service restaurant brands. These independently operated brands have been serving customers for more than 50 years.
Restaurant Brands International Inc. Price and EPS Surprise
Restaurant Brands International Inc. Price and EPS Surprise | Restaurant Brands International Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence Q4 Results
The company has been witnessing comps growth at both the brands – Tim Hortons and Burger King – in the last few quarters backed by menu innovation, value meals, re-imaging and premium offerings. We expect these sales-boosting initiatives to aid fourth-quarter results as well.
We are also encouraged by the company’s augmented focus on enhancing guest experience and increasing franchisee profitability to create value for all of its stakeholders. Moreover, Restaurant Brands’ efforts to grow its global restaurant footprint at both its iconic brands should further boost the quarter’s performance.
However, costs incurred to establish both these brands in new markets as well as execute sales initiatives might dent the company’s profits in the to-be-reported quarter. Additionally, negative currency translation could keep earnings under pressure, while a soft consumer spending environment in the U.S. restaurant space might limit revenue growth.
Earnings Whispers
Our proven model does not conclusively show that Restaurant Brands is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Restaurant Brands has an Earnings ESP of +2.38%. This is because the Most Accurate estimate stands at 43 cents, while the Zacks Consensus Estimate is pegged lower at 42 cents.
Zacks Rank: Restaurant Brands has a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Carrols Restaurant Group, Inc. (TAST - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Papa John’s International, Inc. (PZZA - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #2.
The Priceline Group Inc. has an Earnings ESP of +0.46% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>