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Bull of the Day

If you are already getting sick of all the Brexit talk, fear not, as Restaurant Brands International ( (QSR - Free Report) subsidiary Burger King has just the thing to take your mind off of the turmoil. Their latest product offering looks to combine Mac & Cheese with Cheetos in a fresh hybrid dish that is only available this summer.

This really continues an innovative trend for Burger King as the company looks to differentiate itself in the ultra-competitive fast food market and beat out several of its rivals in the process. And after a period of disarray following its merger with Tim Horton’s, this fresh approach to fast food which focuses on new products and better values is finally starting to resonate with customers. Investors can also see this trend taking place if we look to a few key metrics for QSR stock.

QSR Recently

Shares of QSR bottomed out in early 2016 around $32/share and really took off following their February earnings report. In that release, QSR beat expectations by about 6.5% and shares really took off from there, soaring to the low $40s.

The stock had been stuck in this high $30s low $40s range for a while lately, but this breather for shares of QSR could actually make for a good entry point for investors, and especially if you look to recent analyst changes to earnings estimates for the stock.

Earnings Estimates

Recent changes to earnings estimates have been very positive for QSR stock, as no analysts have pushed their estimates lower for the security in the past sixty days for either the current quarter or the current year. And the magnitude of recent earnings estimate revisions has also been impressive and particularly when investors look to current year figures.

In fact, in just the past two months, full year estimates have risen by over 15%, while they have jumped by over 9% for the following year too. And with these kind of increases, analysts are now expecting a 30% year-over-year growth rate for QSR this year, making the company an excellent choice for investors seeking earnings growth in the restaurant industry.

RESTAURANT BRND Price and Consensus

RESTAURANT BRND Price and Consensus | RESTAURANT BRND Quote

Outlook

For QSR’s latest earnings report, the company saw a solid 4.6% same store sales growth across the globe and at least part of this growth is being assigned to the addition of hot dogs to the Burger King menu. This new item helped to drive more people to stores, and it acted as an add-on item that boosted average order prices too.

The new Mac & Cheetos product has the potential to do the same for the coming months at Burger King, and it continues the company’s recent trend of food innovation. This trend of new products is likely to keep customers coming back for more and it is one of the key reasons that QSR is in such an enviable position in the restaurant industry right now.

So if you are looking for a top ranked stock in the restaurant sector, it will probably be tough to beat Restaurant Brands this summer. The company is a leader in fast food innovation and both customers and analysts are responding positively to these trends as a result, making this a great choice for investors, and especially following this Brexit-induced sell-off.

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