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Factors Setting Tone For Restaurant Brands (QSR) Q3 Earnings

Published 10/20/2019, 10:33 PM
Updated 07/09/2023, 06:31 AM

Restaurant Brands (NYSE:QSR) third-quarter 2019 results are expected to reflect year-over-year increase in earnings and revenues. In the last reported quarter, the company delivered a positive earnings surprise of 6%. Its earnings grew 7.6% from the year-ago reported figure. However, the company’s earnings missed the consensus mark in two of the trailing four quarters, with the average negative surprise being 0.6%.

Total second-quarter revenues outpaced the consensus mark by 1.1% and improved 4.2% from the year-ago reported figure, courtesy of increased system-wide sales across the company’s brands.

How are Estimates Faring?

The Zacks Consensus Estimate for earnings for the quarter to be reported has remained unchanged at 72 cents per share over the past 30 days. The estimated figure indicates a 14.3% increase from the year-ago earnings of 63 cents per share. Revenues are expected to be $1.46 billion, suggesting a 6.3% year-over-year increase.

Factors at Play

Restaurant Brands’ third-quarter revenues and earnings are likely to have benefited from various sales-boosting initiatives, expansion strategies, menu innovation and robust loyalty program.

Moreover, growth across each of its breakfast, lunch and dinner dayparts — supported by new products — is likely to have contributed to its notable brand Tim Hortons’ sales. Particularly, the company’s coffee, cold beverage, wraps and breakfast sandwich platforms are likely to have reflected strength during the quarter.

Moreover, enhancement of restaurant image, technology, operations and marketing, along with expansion of its delivery program are likely to have driven sales at Burger King, another notable brand of the company.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Restaurant Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Restaurant Brands has an Earnings ESP of +0.15% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Restaurant space that investors may consider, as our model shows that these too have the right combination of elements to deliver an earnings beat in third-quarter 2019.

Chipotle Mexican Grill, Inc. (NYSE:CMG) has an Earnings ESP of +2.51% and a Zacks Rank #2.

Dunkin' Brands Group, Inc. (NASDAQ:DNKN) has an Earnings ESP of +2.15% and a Zacks Rank #3.

Shake Shack Inc. (NYSE:SHAK) has an Earnings ESP of +2.27% and a Zacks Rank #1.

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Restaurant Brands International Inc. (QSR): Free Stock Analysis Report

Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report

Dunkin' Brands Group, Inc. (DNKN): Free Stock Analysis Report

Shake Shack, Inc. (SHAK): Free Stock Analysis Report

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