Restaurant Brands (QSR) Stock Forecast & Price Target

Restaurant Brands International (RBI) demonstrates a robust growth trajectory, with approximately $44 billion in system sales across over 32,000 restaurants, driven by strong performances from its key banners, including Burger King, Tim Hortons, and Popeyes. The company has consistently achieved positive comparable sales growth, averaging 4.3% over the past eight quarters, while recent international comparable sales improved markedly from 2.6% to 4.2%. Additionally, RBI's strategic focus on enhancing operational efficiency and accelerating unit growth—projected to exceed 5%—positions the company well to capitalize on market opportunities, particularly as it navigates a favorable valuation relative to peers.

Restaurant Brands International faces a negative outlook primarily due to a significant deceleration in same-store sales and lower unit growth attributed to adverse macroeconomic conditions and declining franchisee profitability. The company is experiencing heightened operational challenges, including greater than anticipated tariff impacts on the Tim Hortons supply chain and deteriorating relationships with franchisees, which have hindered its ability to effectively sell or refranchise U.S. restaurants. Additionally, external pressures, such as rising costs in food, labor, and utilities, alongside declining consumer discretionary spending, pose substantial risks, potentially resulting in a $60 million EBIT headwind by 2027.