Analyst Andrew Charles of TD Cowen maintained a Hold rating on Restaurant Brands International (QSR – Research Report), retaining the price target of $70.00.
Andrew Charles has given his Hold rating due to a combination of factors influencing Restaurant Brands International’s outlook. On the bullish side, investors are optimistic about the company’s ability to achieve an 8% annual operating income growth, which could make the stock attractive in terms of total return. They also have confidence in Tim Hortons’ continued success and see potential for Burger King to improve its same-store sales performance. Additionally, the forecasted net restaurant development rate of less than 5% in 2025-26 is seen as reducing risks associated with expansion.
Conversely, bearish investors are concerned about the lack of a clear catalyst to drive the stock price higher, particularly pointing to Burger King’s market share risks in the U.S. due to competitive pressures. There are also macroeconomic concerns in Canada that could impact Tim Hortons, including immigration reform and potential tariffs. Furthermore, there is criticism that the management is not signaling confidence by repurchasing shares, instead focusing on reducing debt. The company’s capital expenditure guidance for 2025 and beyond, along with a revised estimate for net restaurant growth, also contribute to the cautious outlook.
In another report released on February 18, Stifel Nicolaus also maintained a Hold rating on the stock with a $68.00 price target.