Restaurant Brands price target lowered to $82 from $85 at KeyBanc

KeyBanc analyst Eric Gonzalez lowered the firm’s price target on Restaurant Brands to $82 from $85 and keeps an Overweight rating on the shares. The firm believe the stock remains undervalued vs. its peer group and sees a path for the gap to narrow with improved transparency around rapidly improving four-wall economics and accelerating unit growth. Restaurant Brands delivered consistent Q3 results, highlighted by better-than-expected EPS/EBITDA and double digit improvement in unit level economics in each of its home markets as transaction growth returned to flat Burger King U.S. and remained positive at Tim Hortons Canada, KeyBanc adds. The firm acknowledges that supply chain margins remained under pressure but should improve year-over-year in Q4, and the company continues to see 5%-plus unit growth next year despite macro/geopolitical headwinds.