Restaurant Brands International Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Restaurant Brands International Inc. (NYSE:QSR) just released its latest quarterly report and things are not looking great. Restaurant Brands International missed earnings this time around, with US$2.3b revenue coming in 2.7% below what the analysts had modelled. Statutory earnings per share (EPS) of US$0.79 also fell short of expectations by 15%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Restaurant Brands International

Following the latest results, Restaurant Brands International's 23 analysts are now forecasting revenues of US$9.37b in 2025. This would be a decent 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 5.0% to US$3.73 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$9.48b and earnings per share (EPS) of US$3.79 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$82.44, showing that the business is executing well and in line with expectations. 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. The most optimistic Restaurant Brands International analyst has a price target of US$103 per share, while the most pessimistic values it at US$72.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Restaurant Brands International's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Restaurant Brands International is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Restaurant Brands International analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Restaurant Brands International you should be aware of, and 1 of them is potentially serious.

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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.