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Research Alert: CFRA Maintains Hold Opinion On Shares Of Restaurant Brands International Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Restaurant Brands International Inc.
May 6, 2026 10:35 AM

01:05 PM EDT, 05/06/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by CAD2 to CAD112, based on 20x our 2026 EPS estimate (down from 21x), a discount to shares' 22x 10-year average forward multiple. We raise our 2026 EPS to USD4.06 (CAD5.60) from USD4.05 and 2027's to USD4.32 (CAD5.96) from USD4.29. Following Q1 results showing comp growth momentum at Burger King (+5.8%) but also pressure from beef costs (supply chain cost of sales +13.7%) and ongoing comp drag at Popeyes (-6.5%), we are reiterating our Hold opinion. The company starts 2026 with comp growth (+3.2%) operating income growth (+13%) on pace to exceed their long-term growth targets of +3% and +8%. We are encouraged by Burger King's comp growth momentum, suggesting a turnaround is gaining traction. However, this is balanced by cost pressure from beef prices. Additionally, Q1 restaurant growth (-56 Q/Q) leaves work to be done although management expects this to accelerate throughout the year. Still, we view shares' reaction today suggests investors sense elevated execution risks.

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