Why Restaurant Brands (QSR) Is Sinking Today

Restaurant Brands (QSR) is falling 4% after investment bank Cowen lowered its rating on the shares to Hold from Buy. QSR owns Burger King and Canada-based coffee outlet Tim Hortons.

Why Cowen Downgraded QSR Stock

Tim Hortons could be hurt by American tariffs and Canadian immigration reform, Cowen believes. Moreover, increased competition could impinge on Burger King’s ability to gain market share, the investment bank warned. Further, the company could take more time than expected to increase the number of restaurants it holds by 5%, according to Cowen, which now estimates that the company will reach the goal in 2027. The investment bank placed a $70 price target on the shares.

A close-up of a hamburger, french fries, and a soft drink, representing the fast food chain.

QSR’s Q4 Results

Restaurant Brands reported its Q4 results on Feb. 12. The company’s top line surged 26% versus the same period a year earlier to $2.3 billion, which was roughly in line with analysts’ average estimate. It generated Q4 earnings per share of 81 cents, versus analysts’ average estimate of 79 cents. Its global systemwide sales jumped 5.6% year-over-year in Q4.

“In the fourth quarter, Burger King U.S. outperformed major burger QSR peers with a 1.5% increase in comparable sales, a solid achievement following last year’s 6.4% increase.” CEO Josh Kobza reported.

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Disclosure: None. This article is originally published at Insider Monkey.