Restaurant Brands Earnings: What To Look For From QSR

Fast-food company Restaurant Brands International (NYSE:QSR) will be reporting earnings tomorrow morning. Here’s what investors should know.

Restaurant Brands missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $2.08 billion, up 17.2% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ earnings estimates.

Is Restaurant Brands a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Restaurant Brands’s revenue to grow 28.2% year on year to $2.35 billion, improving from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Restaurant Brands has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Restaurant Brands’s peers in the traditional fast food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, meeting analysts’ expectations, and McDonald's reported revenues up 2.7%, in line with consensus estimates. El Pollo Loco traded up 3.4% following the results while McDonald's was down 1.8%.

Read our full analysis of El Pollo Loco’s results here and McDonald’s results here.

There has been positive sentiment among investors in the traditional fast food segment, with share prices up 5.1% on average over the last month. Restaurant Brands’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $84.01 (compared to the current share price of $69.23).

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