Restaurant Brands International Inc (NYSE:QSR) has been feeling the love of Wall Street analysts over the last couple of weeks with several price target raises.
However, with the company set to post its second-quarter results before the open on August 8, Citi has gone one further, stating that it sees the stock climbing over the next 30 days. The firm also raised its price target for the company to $85 from $74 per share.
Analysts revealed in a note that it has opened a 30-day positive catalyst watch on the fast-food holding company, adding that it has a near-term constructive view of U.S. restaurant stocks in general.
Focusing on QSR, the firm sees upside compared to Street estimates for QSR's Burger King U.S. comps. The analysts noted that the stock has lagged the market over the past three months as "shares have digested some of the initial excitement around management changes and the Reclaim The Flame program."
"We think: (1) strong 2Q BK U.S. SSS (we are at +8 vs the Street at 5.9%) and (2) more discussion around a ramping remodel program in 2H23 (we are expecting mid-teens sales lifts) will drive investor confidence in continued SSS out-performance. This should be enough to drive a rally in shares on the quarter," they wrote.
In addition, Citi sees QSR reporting strong top-line results across core markets, "with BK U.S. likely offering the greatest upside surprise."
"Evidence supporting the brand's turnaround efforts will likely work to support the stock's multiple expansion," added the analysts, who overall have a Neutral rating on the stock.