Fast-food company Restaurant Brands International (NYSE:QSR) will be reporting earnings tomorrow before the bell. Here's what to expect.
Last quarter Restaurant Brands reported revenues of $1.84 billion, up 6.4% year on year, missing analyst expectations by 1.7%. It was a good quarter for the company, with a decent beat of analysts' revenue and EPS estimates.
Is Restaurant Brands buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Restaurant Brands's revenue to grow 6.7% year on year to $1.80 billion, slowing down from the 9.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.74 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and eight downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.1%.
Looking at Restaurant Brands's peers in the traditional fast food segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Yum! Brands delivered top-line growth of 0.8% year on year, missing analyst estimates by 3.3% and Starbucks reported revenues up 8.2% year on year, missing analyst estimates by 2.1%. Yum! Brands traded down 1.9% on the results, Starbucks was up 2.3%.
There has been positive sentiment among investors in the traditional fast food segment, with the stocks up on average 5.7% over the last month. Restaurant Brands is up 1.3% during the same time, and is heading into the earnings with analyst price target of $83.4, compared to share price of $76.7.
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