Restaurant Brands Analysts Trim Forecasts After Q3 Sales Miss

Shares of Restaurant Brands International Inc QSR continued to slide in early trading on Wednesday, after the company reported downbeat third-quarter earnings.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

RBC Capital Markets On Restaurant Brands International

Analyst Logan Reich maintained an Outperform rating, while reducing the price target from $95 to $90.

Restaurant Brands International's third-quarter revenues and EBITDA missed consensus by 2.5% and 1.2%, respectively, Reich said in a note. The company's revenue shortfall was due to lower same-store sales "across every brand," he added.

Same-store sales trends improved in October, driven by Burger King, Popeyes Louisiana Kitchen and the international segment, with consumer pressures "abating to some degree," the analyst stated. "Further, the company continues to demonstrate their ability to manage expenses in a challenging macro which could give investors confidence in some level of earnings support next year even if macro is worse than expected," he wrote.

Check out other analyst stock ratings.

KeyBanc Capital Markets On Restaurant Brands International

Analyst Eric Gonzalez reaffirmed an Overweight rating, while cutting the price target from $80 to $78.

Restaurant Brands International results missed consensus on macro pressures and competitive challenges, Gonzalez said. Management lowered full-year outlook for systemwide sales to 5%-5.5% and unit growth to around 3.5%, he added.

"However, it continues to see 8% + adj. operating income growth and reaffirmed its five-year outlook, including 8%+ systemwide sales growth and 5% unit growth on average through 2028," the analyst wrote. He added that same-store sales improved across the portfolio in October, from around flat to the low single-digit range.

QSR Price Action: Shares of Restaurant Brands International were flat at $68.17 at the time of publication on Wednesday.

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