Restaurant Brands International (QSR) reported mixed Q2 results, with strong performances from Burger King and its international business offset by weaker-than-expected results at Tim Hortons and Popeyes, RBC Capital Markets said.
The investment firm said in a Thursday note that Burger King and international same-store sales topped consensus estimates. Tim Hortons same-store sales rose 0.1%, below the Street's 1.1% estimate, while Popeyes same-store sales fell 5.1%, missing consensus by 0.8%.
RBC said management attributed Tim Hortons' weakness to underperforming marketing campaigns and pushed back on concerns that Canada's macro environment would result in a prolonged low-growth backdrop.
The investment firm said Burger King still has room for further growth through family traffic, store remodels and menu enhancements, adding that the brand remains in the early stages of improving consumer perception.
RBC Capital Markets has an outperform rating and a $85 price target.
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