Restaurant Brands (NYSE:QSR) shares are ticking marginally higher today after the global quick-service restaurant company delivered a mixed set of third-quarter numbers, with EPS of $0.90 exceeding estimates by $0.06. However, revenue of $1.84 billion missed the cut by $30 million, despite registering a year-over-year rise of 6.4%.
Restaurant Brands saw consolidated system-wide sales rise by 10.9% driven by a 10.3% growth at Burger King (BK), a 9.7% growth at Tim Hortons (TH), and a 16.1% growth at Popeyes Louisiana Kitchen (PLK). Global comparable sales increased by 7%, and the company continued to increase its footprint, with the number of BK restaurants now at 19,035 and the number of PLK restaurants now at 4,373.
Despite this growth, QSR cautioned that commodity, labor, and energy costs have been elevated over the past two years owing to global geopolitical upheaval and the COVID-19 pandemic. Higher inflation and the current environment of increased interest rates could impact QSR’s performance if the company is unable to take pricing actions without impacting consumer demand.
Further, the company has announced a quarterly dividend of $0.55 per share. The QSR dividend is payable on January 4 to investors of record on December 21.
Is QSR Stock a Good Buy?
Overall, the Street has a Moderate Buy consensus rating on Restaurant Brands. Following a nearly 19% rise in the company’s shares over the past year, the average QSR price target of $78.17 implies a modest 13.14% potential upside.
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