Restaurant Brands International Inc. (NYSE:QSR) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Restaurant Brands International Inc. (NYSE:QSR) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Restaurant Brands International reported in line with analyst predictions, delivering revenues of US$8.4b and statutory earnings per share of US$3.18, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Restaurant Brands International

After the latest results, the 25 analysts covering Restaurant Brands International are now predicting revenues of US$9.26b in 2025. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 19% to US$3.73. In the lead-up to this report, the analysts had been modelling revenues of US$9.27b and earnings per share (EPS) of US$3.66 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$77.61, showing that the business is executing well and in line with expectations. 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 International, with the most bullish analyst valuing it at US$93.00 and the most bearish at US$67.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Restaurant Brands International'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 9.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.9% annually. So although Restaurant Brands International is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Restaurant Brands International (1 is significant!) that you need to take into consideration.

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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.