Restaurant Brands (QSR) sees Q1 revenue surge to $1.45B. Time to buy?

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Restaurant Brands (QSR) sees Q1 revenue surge to $1.45B. Time to buy?

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Restaurant Brands (QSR) sees Q1 revenue surge to $1.45B. Time to buy?
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Highlights

  • Restaurant Brands (TSX: QSR) has been trending on the stock market since it released its quarterly results on Tuesday, May 3.
  • The Canadian restaurant company posted total revenues of US$ 1.45 billion in the first quarter of FY2022.
  • QSR stock dropped by over two per cent to C$ 71.54 per share at 10:23 AM EST on May 3.

Restaurant Brands International Inc (TSX: QSR) has been trending on the stock market since it released its quarterly results for the first three months of fiscal 2022 on Tuesday, May 3.

Restaurant Brands CEO José Cil said that the company is “well-positioned” to continue its momentum in the long run, with collaborative efforts of its franchise network of Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs.

So, let us find out about Restaurant Brands’ first-quarter performance for FY2022.

Restaurant Brands International Inc (TSX: QSR)’s financial results in Q1 FY2022

The Canadian restaurant company posted total revenues of US$ 1.45 billion in the first quarter of FY2022, up from US$ 1.26 billion year-on-year (YoY). The large-cap company recorded 270 million in net earnings in the latest quarter, indicating a decline YoY from US$ 271 million a year ago.

Restaurant Brands saw its diluted earnings per share increase slightly to US$ 0.59 in the latest quarter against US$ 0.58 in Q1 2021. Its adjusted EBITDA marked a YoY growth to US$ 530 million in Q1 2022 compared to US$ 480 million a year ago.

The restaurant chain reduced its net leverage ratio to 5.5 in Q1 2022 compared to 6 recorded in the same quarter a year ago. The food service company posted net cash provided by operating activities of US$ 234 million in the latest quarter, a decrease from US$ 266 million posted in Q1 2021.

Restaurant Brands (QSR)’s Q1 2022 results

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Restaurant Brands’ stock performance

QSR stock dropped by over two per cent to C$ 71.54 per share at 10:23 AM EST on May 3, possibly due to reduced net profits in Q1 2022 compared to Q1 2021.

The restaurant scrip has jumped by about three per cent over in the past six months.

According to the data collected from Refinitiv, QSR stock held a Relative Strength Index (RSI) value of 41.83 as of writing.

Bottomline

Restaurant Brands said that the global pandemic continued to impact its restaurant operations in 2021 and 2022. However, its impact was “more modest” this year than in 2021. The company expect to enhance its digital sales, deliveries and marketing capabilities to suit the needs of consumers.

Also read: IFC, FFH, CIX, GSY and IGM: 5 TSX financial stocks to buy in May 2022

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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