Fast-food company Restaurant Brands (NYSE:QSR) will be reporting results this Thursday before the bell. Here’s what to expect.
Restaurant Brands beat analysts’ revenue expectations last quarter, reporting revenues of $2.26 billion, up 7.3% year on year. It was a strong quarter for the company, with same-store sales in line with analysts’ estimates and a decent beat of analysts’ EBITDA estimates.
Is Restaurant Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Restaurant Brands’s revenue to grow 4.8% year on year, slowing from the 15.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Restaurant Brands has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Restaurant Brands’s peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Starbucks’s revenues decreased 1.4% year on year, beating analysts’ expectations by 1.5%, and Yum China reported revenues up 12.6%, topping estimates by 4.2%. Starbucks traded up 1.6% following the results while Yum China was also up 5.1%.
Read our full analysis of Starbucks’s results here and Yum China’s results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Restaurant Brands’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $85.04 (compared to the current share price of $73.58).
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