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Restaurant Brands International Inc. (QSR) is one of the world’s largest quick service restaurant brands with approximately 27,000 restaurants in more than 100 countries. The company’s three iconic brands—Tim Hortons, Burger King, and Popeyes—are managed independently with franchise business models and complementary platforms.
The company generated 65% of its revenue from Burger King, 18% of its revenue from Tim Hortons, and 17% of its revenue from Popeyes in 2020.
Restaurant Brands reported fourth quarter revenue that fell 8.1% to $1.36 billion, beating consensus estimates by $10 million, with non-GAAP earnings of $0.53 per share, missing consensus estimates by 12 cents. While Tim Hortons was the worst performing segment with an 11% drop in sales, weakness at Burger King and Popeyes were the biggest surprises for analysts.
Cowen & Co. analysts believe that the stock is overvalued given the bullishness around Burger King’s new chicken sandwich, which is hand-breaded and could slow service times, and recent moves by competitors to launch similar products.
The company raised its quarterly dividend by 1.9% to $0.53 per share, which represents a 3.31% forward yield. The dividend is payable on April 6, 2021 to shareholders on record as of March 23, 2021.
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