JPMorgan Initiates Coverage on Restaurant Brands International (NYSE: QSR) with Positive Outlook and $82 Target Price by December 2024.
According to JPMorgan analysts, the historical budgeting approach of Restaurant Brands International, the parent company of Burger King, resulted in limited spending on support, potentially causing underinvestment in both capital expenditures (capex) and operational expenditures (opex).
However, there’s now evident change in the company’s strategy.
“We are witnessing a significant shift in this enterprise, particularly with the appointment of the highly respected former CEO of Domino’s, Patrick Doyle, and other key executives. A renewed emphasis on enhancing unit economics is expected to positively impact both the performance of existing units and provide greater clarity on the performance of new stores,” noted the analysts in an initiation report.
“We anticipate this growth will be propelled by the global expansion of Burger King and Tim Hortons, as well as Popeyes on a global scale, while maintaining stability in the domestic unit counts of Burger King and Tim Hortons.”
Year-to-date, shares of QSR have gained 6.2%.