Restaurant Brands International (QSR) PT Lowered to $77 at Stifel

Stifel analyst Chris O\'Cull lowered the price target on Restaurant Brands International (NYSE: QSR) to $77.00 (from $80.00) while maintaining a Hold rating.

The analyst comments "Our View: QSR reported strength at Tims Canada, offset by softer results in its U.S.-based brands and the international segment, which was not surprising given recent competitive reports. Based on current trends, the company reduced its net unit growth outlook to 4% (from 4.5%) and moderated its 2024 system sales growth expectations. However, management expects adjusted EBIT growth to meet or exceed the 8%+ long-term target due to better margin performance and tighter G&A cost control. We continue to be encouraged by the solid performance at Tims but expect near-term SRS to remain soft for the U.S.-based brands, given softer spending among lower-income consumers. We are also concerned development will remain below the long-term algo given the weakening consumer environment and geopolitical pressures impacting several global markets. We reduced our net unit growth and 1H SRS projections in FY25 to reflect these risks and lowered our 12-month TP to $77."

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