The Globe and Mail reports in its Thursday, April 17, edition that Citi analyst Jon Tower has reaffirmed his "neutral" recommendation for Restaurant Brands International. The Globe's David Leeder writes that Mr. Tower lowered his share target to $66 from $67 (all figures U.S.). Analysts on average target the shares at $77.76. Mr. Tower says in a note: "Restaurant Brands has the advantages of its two largest profit centres (Tims Canada, BK Intl) being relatively insulted from immediate tariff risk and Tims potentially benefitting from anti-American sentiment in Canada. We expect this remains the dominant theme coming out of EPS until either: (1) high-frequency data starts painting a slower picture for the industry; and/or (2) investors start positioning for new news out of a competitor later this spring. ... The company has demonstrated an ability to improve franchisee profitability in core home markets across the portfolio and we expect this broadly continues, along with strong unit growth for Burger King International, ramping of PLK brand globally and solid comp growth at TH Canada." The Globe reported on Jan. 31 and Feb. 14 that Mr. Tower rated Restaurant Brands "neutral." It was then worth $61.54 and $64.52.
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