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.
Notably, with the acquisition of Popeyes Louisiana Kitchen, the company now has three operating segments: Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. 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 United States and internationally.
The company believes that there is an attractive opportunity to grow all is brands around the world by expanding its presence in existing markets as well as entering new markets. Yet, rising labor costs has been denting the company’s profitability.
Investors should note that the current-year consensus estimate for QSR has gone slightly up 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 16.3%.
Currently, QSR has a Zacks Rank #3 (Hold) 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 (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: QSR beat on earnings, as per both the new and previous standard of revenue recognition by the company. The Zacks Consensus Estimate called for EPS of 64 cents per share, and the company posted adjusted EPS of 66 cents.
Revenues: QSR reported revenues of $1.34 billion. However, per its previous revenue recognition accounting standard, revenues came in at $1.14 billion. This lagged the consensus estimate of $1.37 billion.
Key Stats to Note: In second-quarter 2018, comparable sales at Tim Hortons remained flat while that of Burger King increased 1.8%. Comps at Popeyes increased 2.9% in the quarter.
Stock Price: Shares declined 1.8% in the pre-market trading session, at the time of writing.
Restaurant Brands International Inc. Price, Consensus and EPS Surprise
Check back later for our full write up on this QSR earnings report!
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