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Restaurant Brands Q4 Revenue Nearly Doubles, Dividend Raised

Restaurant Brands International (TSE: QSR) (NYSE: QSR) profit nearly doubled in the fourth quarter as its fast-food chains benefited from fewer COVID-19 restrictions.

Revenue & Earnings

Revenue came in at $1.55 billion for the quarter ended December 31, an increase of 13.8% from $1.36 billion in the prior-year quarter. Comparable sales at Tim Hortons, Restaurant Brands’ largest revenue generator, jumped 10.3% in the fourth quarter, while those at Burger King rose 11.3%. System-wide sales grew 13.8% year-over-year. 

Net income attributable to common shareholders was $179 million ($0.57 per share) in Q4 2021 compared to a profit of $91 million ($0.30 per share) in Q4 2020. Adjusted EPS was $0.74, up from $0.53 a year ago.  

Analysts on average expected adjusted EPS of $0.69 on $1.52 billion in revenue, according to financial data firm Refinitiv. 

The company says it will pay a quarterly dividend of $0.54 per share, up from $0.53.

CEO Commentary

Restaurant Brands CEO José E. Cil said, “Two areas of particular strength across our business have been in digital sales and restaurant growth. Our digital investments have been embraced by our guests, with global digital sales reaching $10 billion in 2021, up from $6 billion in 2020 and now representing about 30% of our global system-wide sales. In addition, our strong global network of franchisees and our development team opened over 1,200 net new restaurants, representing the highest levels of restaurant growth at Tim Hortons and Popeyes in recent history.”

Wall Street’s Take

On February 10, UBS analyst Dennis Geiger kept a Buy rating on QSR, with a price target of C$77. This implies 2.1% upside potential. 

The rest of the Street is cautiously optimistic about QSR, with a Moderate Buy consensus rating based on seven Buys, five Holds, and two Sells. The average Restaurant Brands International price target of C$78.11 implies 3.6% upside potential to current levels. 

TipRanks’ Smart Score 

Restaurant Brands International scores a 5 out of 10 on the TipRanks Smart Score rating system, indicating that the stock is likely to perform in line with the overall market.

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