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What To Expect From Restaurant Brands’s (QSR) Q3 Earnings

StockStory - Thu Nov 2, 2023

QSR Cover Image

Fast-food company Restaurant Brands International (NYSE:QSR) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Last quarter Restaurant Brands reported revenues of $1.78 billion, up 8.3% year on year, beating analyst revenue expectations by 1.55%. It was a decent quarter for the company, with a solid beat of analysts' revenue estimates.

Is Restaurant Brands buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Restaurant Brands's revenue to grow 8.24% year on year to $1.87 billion, slowing down from the 15.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.

Restaurant Brands Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing seven downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.09%.

Looking at Restaurant Brands's peers in the traditional fast food segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. McDonald's delivered top-line growth of 14% year on year, beating analyst estimates by 2.16% and Yum China reported revenues up 8.53% year on year, missing analyst estimates by 5.65%. McDonald's traded up 2.44% on the results, Yum China was down 11.1%.

Read our full analysis of McDonald's's results here and Yum China's results here.

Investors in the traditional fast food segment have had steady hands going into the earnings, with the stocks down on average 0.58% over the last month. Restaurant Brands is up 4.67% during the same time, and is heading into the earnings with analyst price target of $79.5, compared to share price of $67.1.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.

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