Market Overview

Oppenheimer: Restaurant Brands International Is A 'Powerhouse'

Share:

In a report published Thursday, Oppenheimer analyst Brian Bittner initiated coverage of Restaurant Brands International Inc (NYSE: QSR) with a Perform rating and no assigned price target.

According to Bittner, the company which was born out of the December 2014 merger of Burger King and Tim Hortons offers investors "robust fundamentals, attractive revenue/cost synergies and a more "investable" float.

"Fundamentals are rock-solid," Bittner wrote. "Same-store sales at Burger King and Tim Hortons rose 2 percent and 3 percent, respectively in 2014, with drivers for continued momentum."

However, Bittner noted that as a 100 percent franchised-model, any future earnings surprises relies on fixed cost reductions and post-merger synergies. The core fundamentals coupled with 3G's influence on cost reductions and unit growth acceleration at Tim Hortons is overshadowed by the fact that earnings upside is limited and valuation is "full."

Bottom line, the analyst stated that without a near-term upside theme, investors need a longer-term approach and conviction that Tim Hortons' international expansion will succeed under the company's brand.

Shares traded recently at $44.30, up 2 percent.

Latest Ratings for QSR

DateFirmActionFromTo
Oct 2020Credit SuisseMaintainsOutperform
Oct 2020Morgan StanleyMaintainsOverweight
Oct 2020Cowen & Co.MaintainsOutperform

View More Analyst Ratings for QSR
View the Latest Analyst Ratings

 

Related Articles (QSR)

View Comments and Join the Discussion!

Posted-In: 3G Brian Bittner Burger King Fast Food Tim HortonsAnalyst Color Initiation Analyst Ratings

Latest Ratings

StockFirmActionPT
TWTROppenheimerMaintains55.0
FBTruist SecuritiesMaintains310.0
AMZNBenchmarkMaintains4,000.0
GOOGLDeutsche BankMaintains2,250.0
FBWells FargoMaintains330.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com