Analyst Andrew Charles from TD Cowen maintained a Hold rating on Restaurant Brands International and keeping the price target at $74.00.
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Andrew Charles has given his Hold rating due to a combination of factors impacting Restaurant Brands International. The company’s Burger King turnaround shows promise, with a disciplined strategy leading to positive third-quarter results. However, the progress is expected to be uneven, as indicated by fluctuations in October’s performance. The potential for share value appreciation is linked to accelerated net restaurant growth, particularly with a new partner for Burger King China.
Despite the strong third-quarter results driven by menu innovation and operational improvements, the outlook is tempered by challenges faced by lower-income consumers in the U.S., which have affected sales. Additionally, while Burger King’s value perception remains stable among these consumers, the company’s fourth-quarter same-store sales projections have been lowered. These mixed signals contribute to the Hold rating, reflecting both the potential and the current uncertainties in the market.
Charles covers the Consumer Cyclical sector, focusing on stocks such as McDonald’s, CAVA Group, Inc., and Restaurant Brands International. According to TipRanks, Charles has an average return of 7.6% and a 50.74% success rate on recommended stocks.
In another report released on October 21, Morgan Stanley also maintained a Hold rating on the stock with a $77.00 price target.