Restaurant Brands (QSR) Stock Forecast & Price Target

Restaurant Brands International (RBI) demonstrated solid financial performance, with Tim Hortons Canada achieving a 2.5% comparable sales increase and marking its 15th consecutive quarter of traffic growth despite challenging macro conditions. The company witnessed robust international growth, particularly with Tim Hortons and Popeyes Louisiana Kitchen, which respectively reported growth rates of 15% and 24%, contributing to overall systemwide sales of approximately $44 billion in 2024. Additionally, RBI is prioritizing capital allocation towards investments and deleveraging, reflected in the substantial increase of its quarterly dividend by 6.9% year-over-year, signaling confidence in the firm’s financial health and growth trajectory.

Restaurant Brands International has revised its 2025 estimated net restaurant growth to 3.7%, indicating a slowdown compared to the initial expectations and consensus estimates. The ongoing issues related to the Burger King China franchise have resulted in increased bad debt expenses and negatively impacted the company's operating income, signifying potential challenges in restaurant development and overall growth. Additionally, pressures from competitors and deteriorating brand perceptions, particularly among lower-income consumers, pose significant risks to market share and overall financial performance.