-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target by CAD15 to CAD114, based on 21x our 2026 EPS estimate (up from 18x), in line with the shares' 10-year average forward multiple. We raise our 2026 EPS to USD4.05 (CAD5.43) from USD4.00 and lower 2027's to USD4.29 (CAD5.75) from USD4.30. Our revised multiple reflects our view that QSR's franchised model offers better earnings resilience than company-operated formats in an environment of heightened margin headwinds. Our new estimates reflect potential acceleration of consumer trade-down toward value as higher gas prices may limit dining occasions or overall purchasing power. Our opinion remains Hold, as QSR is not immune to cost pressures, with adjusted operating margins falling 120 bps in 2025. We believe 2026 consensus estimates suggest expectations of margin expansion, with EPS growth estimates of 9.9% outpacing revenue growth of 4.3%, which may be at risk. Additionally, current valuation at historical averages leaves limited upside.