The Globe and Mail reports in its Tuesday, Nov. 7, edition that Citi analyst Jon Tower has reaffirmed his "neutral" recommendation for Restaurant Brands International. The Globe's David Leeder writes that Mr. Tower gave his share target a $2 boost to $74 (all figures U.S.). Analysts on average target the shares at $78.50. Mr. Tower says Restaurant Brands "same-store sales engine appears to be losing steam." Mr. Tower says he is concerned about the state of the company's Burger King U.S. operations following Friday's premarket release of "mixed" third quarter financial results. While many Canadian investors continue to evaluate the company based Tim Hortons's domestic performance, analysts on the Street, including Mr. Tower, are increasingly focused on the company's attempts to revive Burger King south of the border through its $400-million "Reclaim the Flame" strategic initiative, which was launched in September, 2022. Mr. Tower says there is currently "no clear narrative shift on [the] BK turnaround." Mr. Tower says in a note, "In aggregate, net unit growth still lags preCOVID levels, but key drivers of growth continued to demonstrate progress as the company continued to optimize its BK U.S. portfolio."
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