Update shared on 30 Nov 2025
Fair value Decreased 0.41%The consensus analyst price target for Restaurant Brands International has been modestly reduced from $78.25 to $77.93. Analysts cite heightened caution after recent earnings and growing macroeconomic pressures in the sector.
Analyst Commentary
Recent analyst notes provide a range of viewpoints on Restaurant Brands International, reflecting both optimism and caution amid challenging sector dynamics.
Bullish Takeaways
- Bullish analysts see the company's ability to maintain earnings as a positive sign, especially as uncertainty rises within the sector.
- Despite lackluster overall enthusiasm, there is a belief that if Restaurant Brands demonstrates resilience and stable results compared to its historical performance, the stock may see favorable market reactions.
- The modest upward adjustment of certain price targets signals some confidence in valuation. There is recognition that the stock is trading at the low end of its historical range.
- Inclusion among notable companies with consensus earnings expectations highlights Restaurant Brands International as a key industry player being closely watched for its execution in the near term.
Bearish Takeaways
- Bearish analysts have grown more cautious due to ongoing macroeconomic pressures, which are expanding beyond lower-income consumers and could limit growth opportunities.
- Recent earnings seasons have dampened investor enthusiasm across the restaurant sector. This has led some to question near-term growth momentum.
- The transition to a more conservative stance, with downgrades from Buy to Neutral, reflects skepticism about the company achieving significant outperformance in the current environment.
- Valuations may remain compressed as sector-wide caution persists. Clear signs of execution and earnings stability may be required for sentiment to improve materially.
What's in the News
- Restaurant Brands International is among notable companies reporting earnings before tomorrow's market open. Consensus earnings expectations are being closely monitored. (Periodical)
- The company has completed a follow-on equity offering, raising approximately $1.21 billion through the issuance of over 17.6 million common shares. (Key Developments)
- In November 2025, RBI announced a joint venture with CPE to accelerate Burger King's expansion in China. This venture is supported by a $350 million capital infusion. (Key Developments)
- Goldman Sachs has secured exclusive rights to negotiate the purchase of RBI's operations in Japan. The potential deal is valued at around $452 million. (Key Developments)
- Stock options and common shares held by certain major shareholders are subject to a lock-up period ending on December 29, 2025. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has declined slightly, moving from $78.25 to $77.93.
- Discount Rate has decreased modestly, changing from 9.57% to 9.50%.
- Revenue Growth expectations have been lowered, dropping from 3.76% to 3.60%.
- Net Profit Margin estimate has edged down, shifting from 19.63% to 19.62%.
- Future P/E ratio has dipped from 17.22x to 17.01x.
Disclaimer
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