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Restaurant Brands (QSR) Reports Q1 Earnings & Revenues Beat

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Headquartered in Miami, FL, Restaurant Brands International, Inc. (QSR - Free Report) came into existence with the merger of Tim Hortons Inc. and Burger King Worldwide Inc. These independently operated brands have been serving their customers for more than 50 years.

Meanwhile, with the recent acquisition of Popeyes Louisiana Kitchen Acquisition, the company now has three operating segments: Tim Hortons, Burger King, and Popeyes Louisiana Kitchen.

The company believes that there is an attractive opportunity to grow both the Tim Hortons and Burger King brands around the world by expanding its presence in existing markets as well as entering new markets.

Moreover, the acquisition of Popeyes has added a booming, highly-regarded brand to Restaurant Brands that has a distinctive position within a compelling segment along with strong customer loyalty and riveting prospects for growth in the U.S. and internationally.

Yet, rising labor costs along with negative currency translation has been denting the company’s profitability. Meanwhile, a soft consumer spending environment in the U.S. restaurant space remains a cause of concern.

Investors should note that the consensus estimate for QSR has been moving slightly upwards over the last 60 days. Meanwhile, QSR’s earnings have been strong over the past few quarters. In fact, the company posted positive earnings surprises consecutively in each of the last four quarters, with an average beat of 19.20%. Revenues also outpaced the Zacks Consensus Estimate in three of the trailing four quarters.

Currently, QSR has a Zacks Rank #1 (Strong Buy) but that could change following Restaurant Brands earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: QSR beat on earnings. Our consensus earnings estimate called for EPS of 35 cents per share, and the company posted adjusted EPS of 36 cents. Investors should note that these figures include stock based compensation expenses.

Revenues: QSR reported revenues of $1 billion. This surpassed our consensus estimate of $972 million.

Key Stats to Note: In first-quarter 2017, comparable sales at both Tim Hortons and Burger King decreased 0.1%, at constant currency. Adjusted EBITDA of $443.3 million was up 6.8% on an organic basis versus prior year results.

Stock Price: Inactive in pre-market trading.

Check back later for our full write up on this QSR earnings report!

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