In a report released today, Andrew Charles from TD Cowen downgraded Restaurant Brands International (QSR – Research Report) to a Hold, with a price target of $70.00.
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Andrew Charles has given his Hold rating due to a combination of factors impacting Restaurant Brands International. The recent increase in stock price has led him to consider the shares fairly valued, prompting a downgrade from a Buy to a Hold. Concerns have emerged regarding potential risks for Tim Hortons, particularly with new immigration reforms and tariffs that could affect consumer spending and confidence in Canada.
Additionally, Burger King is facing challenges with its same-store sales growth, which is now expected to be lower than previously anticipated. The competitive landscape appears tough, especially with other brands focusing on chicken menu innovations, an area where Burger King seems less prepared. Charles also highlights potential delays in achieving a 5% net restaurant growth, especially given geopolitical issues in China and the Middle East, which may further impact Restaurant Brands International’s growth trajectory.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $74.00 price target.
Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QSR in relation to earlier this year.