JPMorgan Initiates Coverage on Restaurant Brands International
According to JPMorgan, Restaurant Brands International is expected to experience further growth. The company, which oversees popular chains such as Tim Hortons and Burger King, has been given an overweight rating and a price target of $82 per share. This forecast suggests a potential upside of over 19% from its previous closing price of $68.69 on Friday.
Positive Changes Ahead
JPMorgan analyst John Ivankoe believes that Restaurant Brands International will benefit from significant improvements in the business. The company has suffered from past underinvestment in capital expenditure (capex) and operational expenditure (opex). However, with the recent appointment of highly respected former Dominos CEO Patrick Doyle, as well as other executives, a positive shift in the company’s performance is expected.
The focus on enhancing unit economics is predicted to boost the performance of existing units and increase visibility for new store performance. This will lead to improved comparable sales and reinforce confidence in achieving the projected 4-5% unit growth or reaching 40,000 stores by 2029, compared to the current count of 30,100 stores.
Driving Growth Internationally
Ivankoe highlights that the international businesses under Restaurant Brands International, including Burger King, Tim Hortons, and Popeyes, will play a significant role in driving company growth. These internationally-exposed brands are expected to contribute to the overall success of the company.
Restaurant Brands International has already seen a 6% increase in its stock value in 2023. This positive performance further supports the anticipation of continued growth.
Source: AsumeTech’s
