Update shared on 16 Nov 2025
Fair value Increased 0.72%Restaurant Brands International's analyst price target has risen modestly to $78.25 per share, as analysts point to stable earnings consensus and note that expectations for value-focused restaurant chains have improved, even though there is broader market caution.
Analyst Commentary
Analysts have provided a range of perspectives regarding Restaurant Brands International's valuation and market outlook, reflecting both optimism over improving fundamentals and caution over external industry pressures.
Bullish Takeaways- Analysts highlight that the price target for Restaurant Brands has been adjusted upward. This indicates confidence in stable earnings and execution capability despite broader market uncertainty.
- Value-oriented restaurant chains such as Restaurant Brands have benefited from improved investor expectations as the market searches for resilient growth stories at appealing valuations.
- With several notable companies reporting earnings, the maintained consensus around Restaurant Brands' earnings per share signals analyst belief in the company's operational stability and growth potential relative to industry peers.
- Bearish analysts have downgraded Restaurant Brands, reflecting caution that macroeconomic pressures are impacting a broader consumer base and potentially dampening near-term upside for the company.
- There is consensus concern that enthusiasm for restaurant stocks has cooled following a recent earnings season, with sentiment affected by widening valuation gaps and uncertain consumer demand.
- Competitive pricing actions from other major restaurant chains, such as McDonald's, are expected to intensify pressure on Restaurant Brands. This could pose challenges to sales growth and margins if market share gains prove elusive.
What's in the News
- Restaurant Brands International is among notable companies reporting quarterly earnings before tomorrow's open. Consensus estimates forecast earnings per share of $1. (Periodicals)
- The company has filed a follow-on equity offering of 17,626,570 common shares. (Key Developments)
- Restaurant Brands International announced a major joint venture with CPE to expand Burger King's presence in China. The partnership aims to grow the number of locations from approximately 1,250 to over 4,000 by 2035, supported by a $350 million capital investment from CPE. (Key Developments)
- Recent share buyback activity included the repurchase and completion of 7,639,137 shares for approximately $500 million. This was part of a previously announced buyback program. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly to $78.25, up from $77.69.
- Discount Rate decreased modestly to 9.57% from 9.67%.
- Revenue Growth expectation is largely unchanged, moving marginally lower from 3.76% to 3.76%.
- Net Profit Margin edged down, now at 19.63% compared to 20.23% previously.
- Future P/E ratio increased from 16.65x to 17.22x. This reflects a modest rise in valuation multiples.
Disclaimer
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