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Hold Rating Maintained for Restaurant Brands International Amid Growth Challenges and Competitive Pressures

TD Cowen analyst Andrew Charles has maintained their neutral stance on QSR stock, giving a Hold rating today.

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Andrew Charles has given his Hold rating due to a combination of factors influencing Restaurant Brands International’s outlook. The company is facing challenges in achieving its target of 5% net restaurant growth, which is now expected to take an additional year. This delay is partly due to closures in BK China, where several unprofitable restaurants are set to close, impacting the overall growth trajectory.
Despite these challenges, there are positive aspects such as the improving trends at Tim Hortons, supported by new menu innovations and marketing campaigns. However, the quick service industry remains competitive, with Burger King needing impactful initiatives to maintain its market position. Given these mixed signals, Andrew Charles maintains a Hold rating, reflecting a cautious stance until more consistent growth is evident.

Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QSR in relation to earlier this year.

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