Restaurant Brands (QSR) Stock Forecast & Price Target

Restaurant Brands International (RBI) has demonstrated robust operational performance, highlighted by an increase in international comparable sales from 2.6% to 4.2% and an average same-store sales growth of 4.3% over the last eight quarters, indicating effective brand management and competitive positioning. The company's unit growth is on track to exceed 5% prior to 2028, driven by normalized closures for Burger King in the U.S. and accelerated openings across all brands, including a strategic partnership for growth in China. Additionally, RBI's strong sales performance in Q3 across its key banners, combined with a favorable valuation compared to peers, positions it well to outperform Canadian discretionary stocks, particularly through international expansion and resilience in diverse market conditions.

Restaurant Brands International faces a challenging operating environment characterized by a meaningful deceleration in same-store sales and lower unit growth, influenced by macroeconomic conditions and declining franchisee profitability. The company's supply chain for Tim Hortons is experiencing greater-than-expected tariff impacts, compounded by decreasing consumer discretionary spending as customers shift to purchasing food at home. Additionally, deteriorating relationships with franchisees and difficulties in selling or refranchising U.S. restaurants further contribute to a negative outlook, amid concerns about heightened costs and uncertain economic conditions affecting future growth prospects.