Restaurant Brands (QSR) Stock Forecast & Price Target

Restaurant Brands International (RBI) is one of the largest restaurant companies globally, generating approximately $44 billion in system sales across over 32,000 locations worldwide, which provides a robust revenue base primarily derived from franchise and property fees. The firm's strategic focus and capital investments are reflected in improving same-store sales (SSS), which averaged +4.3% over the last eight quarters, and a recent acceleration in international comparable sales from +2.6% to +4.2%. With an anticipated unit growth rate exceeding 5% and a favorable market position relative to its peers, RBI demonstrates strong potential for continued financial performance, particularly as its brands expand internationally and adapt to evolving consumer trends.

Restaurant Brands International faces a challenging financial outlook due to a significant slowdown in same-store sales and lower unit growth, exacerbated by macroeconomic pressures and declining franchisee profitability. The company's supply chain for Tim Hortons is experiencing greater tariff impacts than anticipated, coupled with a troubling decrease in consumer discretionary spending, which shifts focus away from dining out. Additionally, deteriorating relationships with franchisees, difficulties in selling or refranchising U.S. restaurants, and rising operational costs contribute to a negative sentiment surrounding the stock, suggesting a persistent tough operating environment.