While no one ever really considered Restaurant Brands (NASDAQ:QSR) to be high cuisine, investors are finding it increasingly palatable. It’s notched up just a bit in Tuesday afternoon’s trading to reach a new 52-week high, and it’s largely thanks to an earnings report that saw former laggards pick up the slack.
Restaurant Brands’ latest quarter came in nicely, with earnings at $0.75 per share against projections that called for $0.63 per share. Revenue, meanwhile, also came in ahead at $1.59 billion against the $1.56 billion predicted. This represented a 9.7% increase over this time last year. The individual segments showed some particular high points. The two leaders this time around were Burger King and, in a huge surprise, Tim Horton’s.
While normally, Tim Horton’s had proved something of a drag on Restaurant Brands’ earnings sheet, this time, it was the big winner. TH Canada saw a 16% rise by itself. And even Burger King brought in a 10.8% rise, long above the 6.27% analysts projected. But Restaurant Brands isn’t taking that for good enough; it’s got plans to drop $400 million into a project it calls “Reclaim the Flame.” That project includes $150 million for advertising and $250 million for various restaurant improvements. Macro concerns are present, certainly, but Restaurant Brands expects it will hold up well even with customers scaling back.
![](https://blog.tipranks.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-at-14-59-43-Restaurant-Brands-International-QSR-Stock-Forecast-Price-Targets-and-Analysts-Predictions-TipRanks.com_-1024x407.png)
Analysts are somewhat skeptical about the potential turnaround. With 11 Buy ratings, six Holds, and one Sell, Restaurant Brands stock is currently considered a Moderate Buy. Moreover, its stock offers a paltry 1.5% upside potential thanks to an average share price of $73 per share.