Analysts Have Been Trimming Their Restaurant Brands Asia Limited (NSE:RBA) Price Target After Its Latest Report

Restaurant Brands Asia Limited (NSE:RBA) shareholders are probably feeling a little disappointed, since its shares fell 2.8% to ₹72.63 in the week after its latest quarterly results. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Restaurant Brands Asia

Following the latest results, Restaurant Brands Asia's six analysts are now forecasting revenues of ₹30.8b in 2026. This would be a major 22% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 29% to ₹3.48. Before this latest report, the consensus had been expecting revenues of ₹32.1b and ₹2.79 per share in losses. So it's pretty clear the analysts have mixed opinions on Restaurant Brands Asia after this update; revenues were downgraded and per-share losses expected to increase.

The average price target fell 15% to ₹94.27, implicitly signalling that lower earnings per share are a leading indicator for Restaurant Brands Asia's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Restaurant Brands Asia, with the most bullish analyst valuing it at ₹135 and the most bearish at ₹76.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Restaurant Brands Asia's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Compare this to the 88 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 20% per year. Factoring in the forecast slowdown in growth, it looks like Restaurant Brands Asia is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Restaurant Brands Asia. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Restaurant Brands Asia analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Restaurant Brands Asia you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.