Burger King, Tim Hortons owner's sales rise

  • Burger King, Tim Hortons owner's sales rise

Burger King, Tim Hortons owner's sales rise

Scotiabank reissued their outperform rating on shares of Restaurant Brands International Inc (TSE:QSR) (NYSE:QSR) in a research report report published on Wednesday.

Total comparable sales at Burger King rose 2.8 percent in the fourth quarter ended December 31, helped by new menu items and the re-introduction of Cheesy Tots for a short period of time. The company's 50-day moving average is $64.89 and its 200-day moving average is $61.92.

Although there has been a slowdown in the restaurant market over the past few months, Restaurant Brands International CEO Daniel Schwartz has committed previously to opening more locations.

Popeyes, which is headquartered in Atlanta, Georgia, has a $1.49 billion market cap and nearly 2,600 restaurants around the country.

Reuters described the potential deal as a bet by the Ontario-based Restaurant Brands to use its worldwide reach to take Popeyes' Louisiana-style fried chicken and biscuits global.

RBI and Popeyes have yet to agree on a deal price, and there is no certainty that negotiations will continue, or that they will lead to any agreement, the people said. Restaurant Brands International has a consensus rating of Hold and a consensus target price of C$57.50. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and seven have issued a buy rating to the stock. Restaurant Brands International now has a consensus rating of "Hold" and a consensus price target of $46.55.

On a same-store, constant currency basis, Tim Hortons sales increased by 0.2% during the quarter while Burger King's comp sales increased by 2.8%. The company has been working to expand Tim Hortons' footprint in the USA and internationally. The company's profits tripled previous year to $345.6 million. The stock had risen 18% over the last three months through Friday's close.

"I'm not a big fan of quick-service restaurants", he said.

Restaurant Brands was formed in 2015 when Burger King, controlled by 3G Capital Partners LP, purchased Canadian coffee-and-doughnut chain Tim Hortons for $11 billion.