Here's What Analysts Are Forecasting For Restaurant Brands Asia Limited (NSE:RBA) After Its First-Quarter Results

It's been a good week for Restaurant Brands Asia Limited (NSE:RBA) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.7% to ₹111. Revenues were ₹6.5b, and Restaurant Brands Asia came in a solid 12% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Restaurant Brands Asia

Following the latest results, Restaurant Brands Asia's six analysts are now forecasting revenues of ₹28.1b in 2025. This would be a notable 14% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 8.7% to ₹3.98 per share. Before this earnings announcement, the analysts had been modelling revenues of ₹29.0b and losses of ₹2.94 per share in 2025. 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.

There was no major change to the consensus price target of ₹125, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Restaurant Brands Asia at ₹140 per share, while the most bearish prices it at ₹106. This is a very narrow spread of estimates, implying either that Restaurant Brands Asia is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Restaurant Brands Asia's past performance and to peers in the same industry. 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 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 36% over the past three years. Compare this to the 82 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 18% 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 take away is that the analysts increased their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Restaurant Brands Asia. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Restaurant Brands Asia analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Restaurant Brands Asia that you need to be mindful of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com