Why Restaurant Brands International Is Poised For Transformation, Says Bullish Analyst

Shares of Restaurant Brands International Inc QSR rose slightly in early trading on Monday, after Friday’s close with weekly losses of around 4%.

There seems to have been a renewed interest in the business, following the appointment of key executives, including former Domino's Pizza Inc DPZ CEO Patrick Doyle, according to JPMorgan.

The Restaurant Brands International Analyst: John Ivankoe initiated coverage of Restaurant Brands International with a Buy rating and a price target of $82.

The Restaurant Brands International Thesis: The company’s focus on improving unit economics is likely to have a positive impact on the current unit performance as well as “add greater visibility to new store performance,” Ivankoe said in the initiation note.

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This is expected to drive improved comps and reinforce confidence in the 4%-5% unit growth outlook or enable the company to increase the number of stores from below 30K to the targeted 40K by 2029, the analyst stated.

“We expect this growth to be driven by the international businesses BK [Burger King] and TH [Tim Hortons] as well as Popeyes globally while domestic BK and TH unit counts achieve stability,” he added.

QSR Price Action: Shares of Restaurant Brands International had risen by 0.93% to $69.33 at the time of publication Monday.

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