Restaurant Brands Asia Limited (NSE:RBA) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Restaurant Brands Asia Limited (NSE:RBA) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues came in at ₹25b, in line with expectations, while statutory losses per share were substantially higher than expected, at ₹4.40 per share. 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.

See our latest analysis for Restaurant Brands Asia

Following the latest results, Restaurant Brands Asia's five analysts are now forecasting revenues of ₹29.0b in 2025. This would be a notable 18% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 28% to ₹3.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹30.8b and losses of ₹2.70 per share in 2025. While this year's revenue estimates dropped there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target was broadly unchanged at ₹129, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Restaurant Brands Asia, with the most bullish analyst valuing it at ₹150 and the most bearish at ₹105 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 2025 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 34% over the past five years. Compare this to the 81 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 17% 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at ₹129, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Restaurant Brands Asia going out to 2027, and you can see them free on our platform here..

Even so, be aware that Restaurant Brands Asia is showing 1 warning sign in our investment analysis , 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.