QSR Maintained at Sector Perform by Scotiabank April 2026

Scotiabank has maintained its QSR analyst rating at Sector Perform while raising the price target to $81 from $71. This move signals analyst confidence in Restaurant Brands International despite near-term market volatility. The company operates Tim Hortons, Burger King, Popeyes, and Firehouse Subs across 100 countries. With a market cap of $27.1 billion and current stock price near $78.20, the rating reflects balanced growth prospects. Meyka AI rates QSR with a grade of B+, indicating solid fundamentals with room for improvement.

Scotiabank Maintains QSR Analyst Rating with Upside Target

Price Target Increase Signals Confidence

Scotiabank raised its QSR analyst rating price target by $10 per share, moving from $71 to $81. This 14% upside reflects the bank’s belief in Restaurant Brands’ operational momentum and franchise strength. The stock currently trades at $78.20, leaving modest room for appreciation. The maintained Sector Perform rating suggests the analyst sees balanced risk-reward at current levels. This action came on April 28, 2026, as part of ongoing coverage updates.

Analyst Consensus and Market Position

The broader analyst community shows 9 Buy ratings and 6 Hold ratings on QSR, with no Sell recommendations. This consensus leans bullish, though the Sector Perform rating reflects a more cautious stance. Restaurant Brands trades at a P/E ratio of 29.73, above historical averages. The company’s $27.1 billion market cap positions it as a major player in quick-service restaurants globally.

QSR Financial Metrics and Operational Performance

Revenue Growth and Profitability Trends

Restaurant Brands posted 19.7% revenue growth in fiscal 2024, driven by same-store sales and new unit expansion. Operating income grew 17.9%, showing strong cost management across its four major brands. However, net income declined 14.2% year-over-year due to higher interest expenses and tax impacts. The company generates $28.25 in revenue per share and maintains a 3.2% dividend yield. Free cash flow per share reached $4.19, supporting dividend payments and capital investments.

Balance Sheet and Leverage Concerns

QSR carries a debt-to-equity ratio of 4.84, indicating significant leverage typical for franchise-heavy models. The company’s net debt-to-EBITDA stands at 6.87x, which is elevated but manageable given stable cash flows. Interest coverage of 4.34x shows adequate ability to service debt. Working capital is negative at $61 million, reflecting the franchise business model where franchisees fund operations. Scotiabank’s price target raise acknowledges these structural dynamics while betting on continued brand strength.

Meyka AI Grade and Stock Valuation Assessment

Meyka Grade Breakdown

Meyka AI rates QSR with a grade of B+, reflecting solid fundamentals with selective weaknesses. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. The 71.16 total score suggests the stock is fairly valued with moderate upside potential. The grade recommendation is BUY, though this is not financial advice. These grades are not guaranteed and we are not financial advisors.

Valuation Metrics and Growth Outlook

QSR trades at 2.88x sales and 33.7x earnings, both elevated relative to restaurant peers. The company’s return on equity of 23.1% demonstrates efficient capital deployment despite high leverage. Three-year revenue growth per share is 42.3%, showing strong long-term trajectory. QSR stock analysis on Meyka reveals forecasts suggesting prices near $72.49 quarterly and $65.51 yearly, indicating potential consolidation ahead.

Technical Setup and Near-Term Catalysts

Technical Indicators and Price Action

QSR’s RSI of 55.09 indicates neutral momentum, neither overbought nor oversold. The stock trades within Bollinger Bands with the middle band at $77.83, suggesting equilibrium. Volume has been elevated at 3.97 million shares, 13% above the 90-day average. The MACD histogram is negative at -0.09, signaling slight bearish divergence. Support levels sit near $74.46, while resistance approaches $81.20 aligned with Scotiabank’s price target.

Upcoming Earnings and Catalyst Timeline

Restaurant Brands reports earnings on May 6, 2026, providing the next major catalyst. Investors will focus on same-store sales trends, franchisee health, and capital allocation plans. The company’s dividend per share of $2.51 remains secure given operating cash flow of $4.98 per share. Management commentary on labor costs, commodity inflation, and consumer traffic will guide forward guidance and sentiment.

Final Thoughts

Scotiabank’s maintained QSR analyst rating with a raised price target reflects confidence in Restaurant Brands’ long-term franchise model despite near-term headwinds. The $81 target implies modest upside from current levels, suggesting a balanced risk-reward setup. Meyka AI’s B+ grade aligns with this cautious optimism, highlighting strong returns on equity offset by elevated leverage. The company’s 19.7% revenue growth and 3.2% dividend yield appeal to income-focused investors. However, the 29.73 P/E ratio and 4.84x debt-to-equity warrant careful monitoring. Upcoming May earnings will test analyst assumptions about consumer demand and franchisee profitability across Tim Hortons, Burger King, and Popeyes.

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Disclaimer:

Stock markets involve risks. This content is for informational purposes only. Analyst ratings are opinions and not guarantees of future performance. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.