- Morgan Stanley analyst Brian Harbour reiterated an Equal-weight rating on the shares of Restaurant Brands International Inc (NYSE:QSR) with a price target of $74.
- In the fourth quarter, QSR’s main KPIs were strong, said the analyst, which is encouraging evidence of ongoing improvement in its main markets.
- These included BK U.S. and TH Canada comps ahead of expectations, international impacted by China but appeared solid elsewhere, and a strong quarter for development was visible as well, with ~750 net openings and acceleration at TH and PLK becoming visible and helping offset BK Int’l, still dragged down by China and Russia, added the analyst.
- Tim’s supply chain and BK were the drivers of the 4Q miss, partly a mis-modeling, but it appears some of Tim’s margin headwinds will continue for longer as high-cost inventory is worked through, said the analyst.
- Bad debt expense and lower JV income were also among the pressures on 4Q EBITDA, remarked the analyst.
- On the other hand, G&A growth should moderate largely as the analyst expected in ’23,and the company didn’t signal additional G&A investment required and the analyst sees some SSS upside for the primary markets into ’23 relative to previous expectations.
- It’s unclear to the analyst what news comes out of next week’s investor event, and the CEO change elevates a known internal leader rather than bringing in a new face.
- The analyst expects more detail on some of the specific initiatives to improve profitability and perhaps more color on the franchisee base and key development drivers.
- Franchisee turnover was very specifically noted on the call, aiming to focus on better operators willing to invest, a long-term positive for the system, said the analyst.
- Price Action: QSR shares are trading lower by 1.26% at $65.77 on the last check Wednesday.
Earnings Preview: MasterCraft Boat Hldgs
MasterCraft Boat Hldgs (NASDAQ:MCFT) is set to give its latest quarterly earnings report on Thursday, 2022-09-08. Here's what investors need to know before the announcement.
Analysts estimate that MasterCraft Boat Hldgs will report an earnings per share (EPS) of $1.50.
