Fast-food company Restaurant Brands International (NYSE:QSR) will be reporting earnings tomorrow before market open. Here's what you need to know.
Restaurant Brands beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $1.74 billion, up 9.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a narrow beat of analysts' earnings estimates.
Is Restaurant Brands a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Restaurant Brands's revenue to grow 18.6% year on year to $2.11 billion, improving from the 8.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Restaurant Brands has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at Restaurant Brands's peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, beating analysts' expectations by 1.5%, and Wendy's reported revenues up 1.6%, falling short of estimates by 1%. El Pollo Loco's stock price was unchanged after the resultsand Wendy's price followed a similar reaction.
Read our full analysis of El Pollo Loco's results here and Wendy's results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Restaurant Brands is up 5.3% during the same time and is heading into earnings with an average analyst price target of $84.8 (compared to the current share price of $71.71).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.