Restaurant Brands Intl (NYSE:QSR) Stock

Restaurant Brands Intl

Restaurant Brands International is one of the largest restaurant companies in the world, with approximately $44 billion in 2024 systemwide sales across a footprint that spanned more than 32,000 restaurants and more than 100 countries. The firm generates revenue primarily from retail sales at its company-owned restaurants, royalty fees and lease income from franchised stores, and from its Tim Hortons supply chain operations. Formed in 2014 after 3G Capital's acquisition of Tim Hortons International, the RBI portfolio is split among Burger King (7,082 units), Tim Hortons (4,539 units), Popeyes Louisiana Kitchen (3,520 units), Firehouse Subs (1,345 units), and international franchise units of those banners (15,639) as of year-end 2024.

Restaurant Brands International Inc. Common Shares

Restaurant Brands International Inc

Baird analyst David Tarantino maintains Restaurant Brands Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) with a Neutral and lowers the price target from $72 to $65.

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Baird Maintains Neutral on Restaurant Brands Intl, Lowers Price Target to $65

Guggenheim analyst Gregory Francfort maintains Restaurant Brands Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) with a Buy and raises the price target from $71 to $77.

Guggenheim Maintains Buy on Restaurant Brands Intl, Raises Price Target to $77

Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. PepsiCo, Restaurant Brands, and Fifth Third Bancorp have rewarded shareholders for years and recently announced dividend increases. These companies currently offer dividend yields of over 3%.
PepsiCo
PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide.
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The company has increased its dividends consecutively for the past 53 years. According to its most recent dividend hike announcement on Feb. 5, PepsiCo raised the quarterly payout by 7% to $1.355, which is equal to $5.42 annually. Currently, the dividend yield on the stock stands at 3.66%.
PepsiCo's annual revenue as of Dec. 31 stood at $91.85 billion. In its Q4 2024 earnings report on Feb. 4, the company posted EPS of $1.96, beating the consensus estimate of $1.94, while revenues of $27.78 billion came in below the consensus of $27.89 billion.
How is the market feeling about PepsiCo? Check out this <a href="https://www.benzinga.com/insights/short-sellers/25/03/44260293/how-is-the-market-feeling-about-pepsico">article by Benzinga</a> to learn more.
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Restaurant Brands International
Restaurant Brands International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) operates as a quick-service restaurant company in Canada, the U.S., and internationally.
Restaurant Brands has raised its dividends every year for the last 10 years. In its most recent dividend announcement on Feb. 12, the board increased the quarterly payout from $0.58 to $0.62 per share, equaling an annual figure of $2.48 per share. The current yield on the dividend is 3.65%.
The company's annual revenue as of Dec. 31 stood at $8.41 billion. In its most recent quarterly earnings release on Feb. 12, the company posted Q4 2024 EPS of $0.81 and revenues of $2.30 billion. Both figures beat the Street estimates.
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Fifth Third Bancorp
Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>) operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the U.S.
Fifth Third Bancorp has increased its dividends every year for the last nine years. In its most recent dividend hike announcement on Sept. 12, the company raised the quarterly payout from $0.35 to $0.37 per share, equal to an annual figure of $1.48 per share. Currently, the dividend yield on the stock is 3.75%.
The company&#8217;s annual revenue as of Dec. 31 stood at $8.25 billion. In its Q4 2024 earnings release on Jan. 21, Fifth Third Bancorp posted revenues of $2.17 billion, below the consensus estimate of $2.21 billion, while EPS of $0.90 beat the consensus of $0.88.
Check out this <a href="https://www.benzinga.com/insights/analyst-ratings/25/03/44151455/deep-dive-into-fifth-third-bancorp-stock-analyst-perspectives-8-ratings">article by Benzinga</a> for eight analysts&#8217; insights on Fifth Third Bancorp.
PepsiCo, Restaurant Brands, and Fifth Third Bancorp are good choices for investors seeking reliable passive income. Their dividend yields of over 3% and long history of consistent hikes make them attractive to income-focused investors.
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Personal Finance

FITB

Why PepsiCo, Restaurant Brands, And Fifth Third Bancorp Are Winners For Passive Income

Last week, J.P. Morgan analyst John Ivankoe hosted Bloomin&#8217; Brands Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLMN#NASDAQ">BLMN</a>), CAVA Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAVA#NYSE">CAVA</a>), Brinker International Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EAT#NYSE">EAT</a>), and Sweetgreen Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SG#NYSE">SG</a>) at the J.P. Morgan Las Vegas forum.
The analyst noted that the key takeaway from all four companies was the focus on doing &#8220;fewer things better&#8221; and consistently reinvesting in customer and employee experiences.
According to the analyst, stock volatility has created opportunities, with the current 10-year yield of 4.3% helping global QSR valuations, easing fears of a 5-6% yield.
The analyst recommended adding fresh investments in Dutch Bros Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BROS#NYSE">BROS</a>), Starbucks Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>), and CAVA.
While McDonald&#8217;s Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) and Restaurant Brands International Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) are fairly valued, slower U.S. data and international growth may present better buying opportunities, per the analyst.
Yum! Brands Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUM#NYSE">YUM</a>) exceeded expectations, benefiting from tech-fee recapture. Domino&#8217;s Pizza Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NASDAQ">DPZ</a>) is fairly valued due to high expectations. It remains uncertain if the Middle East conflict&#8217;s impact will drive sustained sales growth or just a leveling out.
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The analyst upgraded the shares of CAVA to Overweight. CAVA has significant potential for expansion in the U.S., with impressive free cash flow generation and a strong pipeline of operational and brand initiatives to drive sales and profits.
The analyst reiterated a Neutral rating on Chipotle Mexican Grill, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) and EAT due to high valuations and peak comps, but remain cautiously optimistic and would consider adding on volatility.
Overweight-rated SG and Krispy Kreme Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DNUT#NASDAQ">DNUT</a>) face sales and profit challenges, with SG offering near-term potential through seasonal menus and loyalty programs.
Following YUM&#8217;s Taco Bell analyst day on March 4, which highlighted the &#8220;Byte by YUM!&#8221; platform and improving KFC international trends, the analyst conducted a full model review and a valuation reset.
Projections include Taco Bell U.S. growing to 9,000 units by 2030 and Taco Bell International expanding to 2,000 units. The analyst assumes KFC international (excluding China) will increase to 22,300 units, while KFC China will reach 19,400.
Compared to previous expectations, only BROS, DPZ, and Taco Bell (YUM) are performing ahead, while high-growth brands like CAVA, SG, Chili&#8217;s, and SBUX are on track.
Larger QSR brands like MCD, BK (QSR), KFC/PH (YUM), and fast-casual chains such as CMG and Shake Shack Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHAK#NYSE">SHAK</a>) are underperforming. Casual dining brands like Darden Restaurants Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) (Olive Garden), Texas Roadhouse Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXRH#NASDAQ">TXRH</a>) (Roadhouse), and BLMN (Outback) are also tracking lower.
The U.S. restaurant labor market remains stable, with open positions at 6.2% of total employment, close to the 20-year average of 4.4%. The quits rate stands at 3.8%, near the historical average of 4.0%.
Consumer confidence has declined, with a focus on the &#8220;expectations&#8221; component, as cautious consumers become more selective in discretionary spending.
Large QSR brands, like MCD and DPZ, report weaker performance among low-income consumers. In contrast, high-growth brands like CAVA are seeing strong growth in the lowest income quartiles, suggesting a shift toward QSR trade-ups and growing brand awareness.
According to the analyst, sourcing talent and retention remain key to building strong brands and scaling operations, mainly during the rapid adoption of in/out-of-store tech.
Total industry supply growth has remained surprisingly resilient, up 12% from third-quarter FY18 to third-quarter FY24 for a CAGR of ~2%, opined the analyst.
So much attention is placed on future AI driven opportunities, but the reality is 40% of the industry sales are from the top 500 chains with a very large addressable market of another 60% are considered to be independents, the analyst noted.
Tariffs are less of an issue for this sector than other industries but related inflation could impact several daily consumer staple commodities including avocados, seasonal produce/fruit and coffee, said the analyst.
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Image via Shutterstock.

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Is Tariff An Issue For Restaurant Sector? J.P. Morgan Highlights Winners & Losers

JP Morgan analyst John Ivankoe maintains Restaurant Brands Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) with a Overweight and lowers the price target from $80 to $78.

JP Morgan Maintains Overweight on Restaurant Brands Intl, Lowers Price Target to $78

Restaurant company Steak ‘n Shake received praised from Health and Human Services Secretary Robert F. Kennedy Jr. as he pushed forward his <a href="https://www.benzinga.com/general/restaurants/25/03/44280041/rfk-jr-thanks-steak-n-shake-for-rfking-the-french-fries-restaurant-goes-all-in-on-make-america-healthy-again">Make America Healthy Again mantra.</a>
A new survey shows people may be more interested in trying the cooking method that the restaurant chain is embracing.
What Happened: Kennedy recently traveled to a Steak ‘n Shake restaurant to try their french fries, which are cooked in beef tallow, a food item he has<a href="https://www.benzinga.com/general/restaurants/25/02/44059763/rfk-jr-applauds-this-restaurant-chains-move-fries-will-be-rfkd"> encouraged restaurants</a> to switch to.
Kennedy told Fox News host Sean Hannity that consumers were "raving" about the french fries during an in-person interview at one of the chain's restaurants.
&#8220;Steak ‘n Shake just switched out, and people are raving about these french fries,&#8221; Kennedy said.
The comments come after Steak ‘n Shake, owned by Biglari Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BH#NYSE">BH</a>), switched from seed oils to beef tallow at all locations. 
Benzinga recently surveyed readers to see if they have tried this cooking method or would consider trying after Kennedy's recent blessing.
"Steak ‘n Shake switched to frying with beef tallow, a cooking method supported by Robert F. Kennedy Jr.. What's your reaction?" Benzinga asked.
The results were:
<ul>
<li>I'm more likely to try food cooked in beef tallow: 34%</li>
<li>I don't care what my fries are cooked in: 32%</li>
<li>I'm less likely to try food cooked in beef tallow: 22%</li>
<li>I've already tried food cooked in beef tallow: 11%</li>
</ul>
The poll found that around one-third of people were interested in trying the beef tallow cooking method. Another one-third said they don't care what method is used to cook their fries. Only 22% said they were less likely to try this food cooking method, which might show opposition to Kennedy.
In the poll, 11% of readers said they have already tried the beef tallow cooking method. When taking out these readers, the poll found the following results:
<ul>
<li>More likely to try food cooked in beef tallow: 39%</li>
<li>Don't care: 37%</li>
<li>Less likely to try food cooked in beef tallow: 25%</li>
</ul>
The poll shows that Steak ‘n Shake's move and Kennedy's praise has people talking.
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Why It's Important: The restaurant chain's switch has drawn praise from Kennedy and members of Congress. Steak ‘n Shake embraced the strong reception. On its social media platforms, the company posted images with the phrase "Make America Healthy Again" as well as a photo of a customer holding fries in a Tesla vehicle — a potential reference to the EV company that is led by Donald Trump-ally Elon Musk.
Musk previously supported Kennedy&#8217;s praise for beef tallow by saying &#8220;the fries taste way better&#8221; with this cooking method.
Steak ‘n Shake&#8217;s current social media strategy and the attention it&#8217;s receiving from Kennedy appears to be paying off.
Google trends <a href="https://trends.google.com/trends/explore?geo=US&amp;q=steak%20n%20shake&amp;hl=en" target="_blank" rel="noreferrer noopener">data </a>shows searches for Steak ‘n Shake at a 12-month high. Searches for &#8220;steak n shake beef tallow fries&#8221; and &#8220;steak n shake beef tallow&#8221; increased.
Biglari&#8217;s future financials will show whether the new cooking method and social media strategy paid off for shareholders.
Kennedy says he prefers to &#8220;incentivize&#8221; companies to transition away from processed seed oils, instead of an outright ban.
&#8220;People should be able to make their own choice. If you want to eat a donut, or seed oils, you should be able to,&#8221; he said.
Kennedy said people should know what&#8217;s in their food and the potential health impacts to make an &#8220;informed choice.&#8221;
During the interview, Kennedy mentioned several other restaurants that have switched from seed oils or are in the process of switching. They include  Sweetgreen (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SG#NYSE">SG</a>), Buffalo Wild Wings, Bloomin&#8217; Brands-owned Outback Steakhouse and Restaurant Brands International-owned (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) Popeyes Louisiana Kitchen.
&#8220;We want to do everything that we can to incentivize these companies to be transparent, to switch over from ultra-processed food, and to be part of this movement to make America healthier,&#8221; Kennedy said.
Popeyes shared with Benzinga that they are not new to the beef tallow cooking method.
"While most other brands are just entering into the beef tallow conversation, Popeyes has been utilizing beef tallow for over 50 years to fry its chicken to perfection. This classic cooking method is one of the reasons Popeyes chicken has such a signature shatter crunch texture and bold, crave-worthy flavor – and it's all thanks to tried-and-true cooking techniques. While others maybe catching on to the benefits of cooking with beef tallow, Popeyes has been serving up crispy perfection since day one," Popeyes said.
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The study was conducted by Benzinga from March 13, 2025, through March 14, 2025. It included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 105 adults.

Politics

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Making Kennedy Proud Again? New Poll Shows 34% Of Diners More Likely To Try Food Cooked In Beef Tallow

Robert F. Kennedy Jr. is sending praise and thanks to a restaurant company that is embracing his <a href="https://www.benzinga.com/general/restaurants/25/02/44059763/rfk-jr-applauds-this-restaurant-chains-move-fries-will-be-rfkd">Make America Healthy Again mantra.</a>
What Happened: Kennedy recently traveled to a Steak ‘n Shake restaurant to try their French fries, which are now cooked in beef tallow, a food item he has encouraged restaurants to switch to.
The Health and Human Services Secretary joined Fox News host Sean Hannity for an interview at a Florida restaurant location where he told the newscaster consumers were "raving" about the French fries.
"Steak ‘n Shake just switched out, and people are raving about these French fries," Kennedy said.
The restaurant company, which is owned by Biglari Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BH#NYSE">BH</a>), recently announced it was switching from seed oils to beef tallow at all locations.
"It's a completely different experience," Kennedy said of the fries. "Steak and Shake has been great. We're very grateful to them for RFKing the French fries."
Kennedy ate a double cheeseburger and fries during the interview with Hannity and discussed the negatives of seed oils and positives of beef tallow, as <a href="https://nypost.com/2025/03/10/us-news/robert-f-kennedy-jr-thanks-fast-food-chain-steak-n-shake-for-rfking-french-fries/">reported </a>by the New York Post.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Thank you for visiting Steak n Shake Secretary Kennedy! <a href="https://t.co/pRu1u37MvW">pic.twitter.com/pRu1u37MvW</a>
&mdash; Steak &#39;n Shake (@SteaknShake) <a href="https://twitter.com/SteaknShake/status/1899268910886572218?ref_src=twsrc%5Etfw">March 11, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
"Seed oil is one of the components of processed foods, and all the science indicates that ultra-processed foods are the principal culprit in this extraordinary explosion – the epidemic we have of chronic disease."
Kennedy has said that he doesn't want to outright ban seed oils and processed foods, instead choosing to "incentivize" companies to transition away.
"People should be able to make their own choice. If you want to eat a donut, or seed oils, you should be able to."
Kennedy said people should know what the product is and what's in the food and the potential health impacts to make an "informed choice."
During the interview, Kennedy also mentioned several other restaurants that have switched from seed oils or are in the process of switching including Sweetgreen (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SG#NYSE">SG</a>), Buffalo Wild Wings, Bloomin' Brands (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLMN#NASDAQ">BLMN</a>) owned Outback Steakhouse and Restaurant Brands International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) owned Popeyes Louisiana Kitchen.
"We want to do everything that we can to incentivize these companies to be transparent, to switch over from ultra-processed food, and to be part of this movement to make America healthier," Kennedy said. 
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Why It's Important: A quick look at Steak ‘n Shake's X account shows the restaurant is embracing the attention it is getting from Kennedy, conservative voices and Republican members of Congress. 
"I just had a cheeseburger and fries cooked in beef tallow today for lunch!" a <a href="https://x.com/mtgreenee/status/1899280958508974211">tweet </a>from Rep. Marjorie Taylor Greene (R-Ga.) reads that was shared by the restaurant.
Steak ‘n Shake originally embraced the change and the attention it was getting by saying, "fries will be RFK'd!" in reference to Kennedy.
Social media <a href="https://x.com/SteaknShake/status/1898422332567298089">posts </a>show hats that say "Make America Healthy Again" and images of vehicles that look like Tesla vehicles, a potential reference to the EV company that is led by Donald Trump-ally Elon Musk.
Musk previously supported Kennedy's praise for the beef tallow switch by the restaurant saying "the fries taste way better" with this cooking method.
While the move to go all in on embracing Kennedy and one political side could be a move that could backfire, Steak ‘n Shake's current social media strategy and the attention it got from Kennedy's recent interview appears to be paying off.
Google trends <a href="https://trends.google.com/trends/explore?geo=US&amp;q=steak%20n%20shake&amp;hl=en">data </a>shows searches for Steak ‘n Shake at a 12-month high with an increased number of searches for "steak n shake beef tallow fries" and "steak n shake beef tallow" being done.
Future financials for the restaurant chain will show if the food cooking method switch and social media strategy paid off for Biglari Holdings shareholders.
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Photo: Shutterstock

RFK Jr Thanks Steak 'N Shake For 'RFKing The French Fries': Restaurant Goes All In On Make America Healthy Again

Chick-fil-A's well-known policy of closing on Sundays—a decision rooted in its founder's Christian values—continues to have a significant impact on the fast-food industry. While the brand remains one of the most successful chicken chains in the U.S., its weekly closure creates a vacuum that <a href="https://www.benzinga.com/topic/fast-food-stocks">competitors are eager to fill.</a>
What To Know: According to data from Veraset, a location data provider, over a quarter (27.4%) of Chick-fil-A's weekday customers in Atlanta, the chain&#8217;s most popular hub, turn to local eateries when the chain is closed. However, major publicly traded <a href="https://www.benzinga.com/topic/fast-food-restaurants">fast-food brands</a> also benefit from the Sunday void.
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McDonald&#8217;s Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) captures 12.2% of displaced customers, while Wendy&#8217;s Co (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) and Burger King, owned by Restaurant Brands International Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>), help drive a 16% shift toward burger restaurants. 
Additionally, Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), which offers a fast-casual alternative, benefits from the 8% of Chick-fil-A customers opting for Mexican and Tex-Mex options. Meanwhile, Popeyes—another QSR brand—and KFC, a part of Yum! Brands Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUM#NYSE">YUM</a>), see an 11.8% boost from chicken lovers looking for a substitute.
What Else: For investors, this data highlights the resilience of these brands and their ability to capitalize on consumer habits. McDonald's, Wendy's and Chipotle in particular have strong Sunday sales, benefiting from Chick-fil-A's absence. That said, the entire quick service restaurant industry in Georgia in February took a hit to foot traffic when compared with last year. Three of the four weeks showed a contraction when compared with the prior year, <a href="https://www.placer.ai/industries/quick-service#Georgia">according to</a> Placer.ai, ranging from down 6.3% in the week of February 17 to up 1.65% in the week of February 24. Georgia&#8217;s performance has only slightly outperformed the nationwide trends. 
As fast-food competition intensifies, understanding how companies position themselves to absorb these customer shifts could be crucial for evaluating stock performance.
Despite its Sunday closures, Chick-fil-A remains dominant, but its competitors have learned how to turn the weekly day of rest into an opportunity.
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Source: Veraset, February 2025 and Marketing Director of Veraset, Adam Fachler

No Chick-fil-A On Sundays? Here's Where Fast-Food Fans Flock Instead

The U.S. restaurant industry is staring down the barrel of a potential $12 billion setback. This comes in the wake of President Donald Trump&#8216;s proposed&nbsp;tariffs on food and beverages, as per the National Restaurant Association&#8216;s warning.
What Happened: The National Restaurant Association has voiced its concerns to President Trump regarding the possible repercussions of his proposed tariffs, reported <a href="https://www.bloomberg.com/news/articles/2025-02-26/restaurants-warn-of-potential-12-billion-hit-from-trump-tariffs">Bloomberg </a>on Tuesday. The association, which represents restaurants nationwide, estimates that the tariffs could inflict a cost of over $12 billion on the industry and trigger a hike in consumer prices.
In a letter addressed to the President in February, the association cautioned that the industry, which operates on thin&nbsp;profit margins of 3% to&nbsp;5%, would be compelled to increase prices if the tariffs come into effect. The group has appealed to the president to exclude&nbsp;food and beverage products from&nbsp;the tariffs to mitigate&nbsp;the effect on consumers and restaurant owners.
The association&#8217;s projections are based on a <a href="https://www.benzinga.com/news/global/25/02/43926015/trump-confirms-tariffs-on-canada-mexico-will-take-effect-as-planned">25% tariff on food and beverage</a> imports from Mexico and Canada. The group also emphasized that these products do not play a significant role in the trade deficits that Trump aims to address.
The association reported that food expenses make up approximately 33 cents of every sales dollar, meaning tariffs could cause the average small restaurant operator&#8217;s profits to drop by around 30%. The letter signed by the association CEO Michelle Korsmo stated, "For many food products, the appropriate climate and growing conditions do not exist in the U.S. year-round to produce the quantities needed for our businesses.&#8221; 
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Why It Matters: The proposed tariffs could further strain the restaurant industry, which has been grappling with challenges such as rising food costs. For instance, McDonald&#8217;s Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) <a href="https://www.benzinga.com/content/43657072/mcdonalds-underwhelmed-in-q4-why-investors-shouldnt-worry">reported underwhelming fourth </a>and full-year 2024 results, despite its share price uptrend. The proposed tariffs could exacerbate these issues, potentially hampering the growth of not only McDonald&#8217;s but the entire restaurant industry.
However, according to S&amp;P Global, the tariffs may have less impact on quick service restaurants (QSRs) than restaurants. The think tank says McDonald&#8217;s Corp. and Restaurant Brands International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) are largely shielded from food costs at the restaurant level. Due to the large-scale focus on specific items, QSRs may face temporary price increases for certain menu items (e.g., frozen French fries from Canada-based McCain Foods). However, S&amp;P Global believes this risk can be managed by proactively planning for tariffs and leveraging supplier relationships to transition to local sourcing.
&#8220;If broad-based tariffs strain the overall economy, we could see more traffic to QSRs because of value-oriented offerings,&#8221; states S&amp;P Global. 
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Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Markets

Trump's Proposed Tariffs Could Deal $12 Billion Blow To US Restaurants, Industry Warns

TD Securities analyst Andrew Charles reiterates Restaurant Brands Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) with a Hold and maintains $70 price target.

TD Securities Reiterates Hold on Restaurant Brands Intl, Maintains $70 Price Target

Yum! Brands Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUM#NYSE">YUM</a>) is making headlines for announcing that Kentucky Fried Chicken will soon <a href="https://www.benzinga.com/trading-ideas/movers/25/02/43818486/yum-brands-moves-kfcs-us-headquarters-to-texas-in-strategic-shift">be based in Texas.</a> 
While the company has Kentucky in its name, its not the first brand to be headquartered in a different state.
What Happened: Kentucky Fried Chicken, which was founded by Harland Sanders (aka Colonel Sanders) in the 1930s, will soon call Texas home. It joins several other companies moving their headquarters to<a href="https://www.benzinga.com/news/24/07/39804744/spacex-x-to-move-headquarters-from-california-to-texas-musk-calls-it-the-final-straw-criticizes-gov"> the southern state.</a>
Yum Brands announced the move in February. The company will have two brand headquarters in the U.S., one located in Plano, Texas, and the other in Irvine, California.
Kentucky Fried Chicken U.S. and Pizza Hut global headquarters will be located in Plano, Texas. KFC US is currently headquartered in Louisville, Kentucky. KFC US corporate office employees in Kentucky and remote workers are being asked to move to Texas.
Taco Bell and Habit Burger &amp; Grill will be headquartered in Irvine, California. The KFC Foundation and Yum Brands corporate offices will remain in Louisville, Kentucky as part of the transition.
"These changes position us for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders," Yum Brands CEO David Gibbs <a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/news/!ut/p/z1/jY9BC4JAFIR_SwevvmeiLt1ECFPJ9iDaXkJjWw11RTf9-0l1EUp6t3l8M8MAgwxYm4-VyFUl27ye9ZnZF0LDrY8xHkniWUi3RniI9o6BiQHpC8Af5yKwf_wrAFuPT4EtK2IS20g9z_QD6pjkZH-AlYwAmKhl8Z7rtoVJBLCe33jPe_3Rz-9SqW7YaajhNE26kFLUXL_KRsNvllIOCrIlCV2TZHi36jFyN0_Y713h/?urile=wcm:oid:54d63edb-2d60-4482-9134-ba1e69af9aac">said</a>. "Ultimately, bringing more of our people together on a consistent basis will maximize our unrivaled culture and talent as a competitive advantage. I'm confident this is another important step in growing our iconic restaurant brands globally."
Yum Brands has over 61,000 restaurants around the world in more than 155 countries with its various brands. The company has over 30,000 KFC locations in 150 countries, including 4,149 <a href="https://locations.kfc.com/">locations </a>in the United States.
The restaurant brand has 114 locations in Kentucky, which ranks 11th of the states. With 324 locations, Texas ranks second for KFC trailing only California (438).
Sanders <a href="https://global.kfc.com/our-history">ran </a>service stations in Nicholasville and Corbin, Kentucky and served his fried chicken to &nbsp;travelers using his secret recipe of 11 herbs and spices. The Corbin location is the company's original and in 1952 the first KFC franchise location was opened in Salt Lake City, Utah.
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Other Companies With Out-Of-State Headquarters: Kentucky Fried Chicken, which many people know as KFC, won't be the first company with a state in their title to be headquartered elsewhere.
Here are some other companies that have state names in their titles, but aren't headquartered there.
Louisiana-Pacific (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPX#NYSE">LPX</a>): Building materials manufacturer was founded in Portland, Oregon and originally a part of Georgia-Pacific. The company is headquartered in Nashville, Tennessee today.
Alaska Airlines, a unit of Alaska Air Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>): Regional airline company was started as a dominant airline in Alaska and Alaska Air Group was founded in 1985 as the holding company for the brand.
AriZona Beverages: Best known for the AriZona Ice Tea brand and its famous 99-cent pricing in most locations, the company is not headquartered in Arizona. The company was founded in 1992 in New York and remains headquartered there today.
Texas Roadhouse (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXRH#NASDAQ">TXRH</a>): Restaurant company was founded in 1993 in Indiana and is now headquartered in Louisville, Kentucky.
Popeye's Louisiana Kitchen: Restaurant company was founded in New Orleans, Louisiana in 1972, but is headquartered in Miami, Florida today. The company is owned by Restaurant Brands International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>).
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Image: Shutterstock

Education

Texas Fried Chicken? KFC Moves HQ, But It's Not The Only State-Named Brand To Relocate

This marks the entry into the Asia-Pacific region for the brand, through a development and franchise agreement between a subsidiary of the parent company, Restaurant Brands International (RBI), one of the world's largest quick service restaurant companies, and RFG. RFG is the owner of popular brands Gloria Jeans Coffees, Donut King, Brumby's Bakery, Beefy's Pies and Crust Pizza.&nbsp;

Reported Earlier, Restaurant Brands International Launches Firehouse Subs In Australia, Targeting 165 Locations In 10 Years

Restaurant Brands Now Owns Nearly 100% Of Burger King China Business; Plans To Engage Advisors To Identify A New Local Partner To Inject Primary Capital Into The Business

Restaurant Brands Says Subsidiary Acquired From TFI Asia And Pangaea Two Acquisition All Their Equity Interests In Burger King China For $158M In All-cash Transaction

Oppenheimer analyst Brian Bittner reiterated an Outperform rating on Restaurant Brands International Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) with a <a href="https://www.benzinga.com/quote/qsr/analyst-ratings">price forecast of $77.00.</a>
Management <a target="_blank" href="https://www.benzinga.com/25/02/43656323/burger-king-parent-restaurant-brands-posts-q4-beat-on-robust-demand" rel="noreferrer noopener">expects EBIT growth for 2025</a> to align with the long-term target of over 8%. Key expectations include segment G&amp;A between $650 million and $670 million, approximately 19% TH-distribution margins, an ~$58 million benefit from the expiration of BK-US corporate advertising expenses, and a ~$19 million headwind due to BK China.
Adjusting the model, the analyst projects 2025E same-store sales (SSS) growth of +2.5%, which is slightly below the company&#8217;s annual target of 3%+.
There are several variables at play, and while management did not give a precise SSS forecast for 2025E, they indicated that the first quarter will likely be the weakest of the year, impacted by a 100 basis points leap-day headwind, before easier comparisons come into play.
The analyst anticipates +1.8% growth in the first quarter of FY25, followed by an average of +2.8% for the second through fourth quarters.
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QSR intends to offer an official unit growth forecast for 2025E once it reaches an agreement with its BK-China franchisee. For the time being, the analyst projects 2025E unit growth at +3.6%, slightly higher than the +3.4% growth seen in 2024.
EPS of $0.81 exceeded the Street&#8217;s estimate of $0.79, and EBITDA also came in higher at $688 million, surpassing the expected $683 million. Profits from TH, BK, and FHS were better than expected, noted the analyst.
The analyst has adjusted &#8217;25E/&#8217; 26E EPS to $3.61/$3.97 (from $3.64/$4.03) and EBITDA to $2.96 billion/ $3.17 billion from $2.99 billion/$3.19 billion.
RBC Capital Markets analyst Logan Reich reiterated the Outperform rating on the shares with a price forecast of $80.00.
QSR&#8217;s fourth-quarter report highlighted signs of improving trends, although expectations from the buy-side had risen before the results were released, noted the analyst.
On a positive note, same-store sales exceeded expectations across all segments, with the exception of TH, which was only 20 basis points below, likely better than anticipated, considering McDonald&#8217;s Corp&#8216;s <a target="_blank" href="https://www.benzinga.com//node/43592025" rel="noreferrer noopener">earlier comments this week.</a>
International performance stood out with a 190 basis point increase. Management remains confident in achieving long-term algorithmic AOI growth of over 8% in &#8217;25, despite challenges from FX and BK China.
On the downside, there was limited commentary on BK US trends for the first quarter, which is expected to remain a concern due to heightened competitive pressures, noted the analyst.
Price Action: QSR shares are trading higher by 0.31% at $66.04 at the last check Thursday.
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Equities

Burger King Parent Restaurant Brands Shows Signs Of Improvement Despite Pressures, Analysts Remain Bullish

Truist Securities analyst Jake Bartlett maintains Restaurant Brands Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) with a Buy and lowers the price target from $85 to $83.

Truist Securities Maintains Buy on Restaurant Brands Intl, Lowers Price Target to $83

Barclays analyst Jeffrey Bernstein maintains Restaurant Brands Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) with a Overweight and lowers the price target from $83 to $80.

Barclays Maintains Overweight on Restaurant Brands Intl, Lowers Price Target to $80

TD Securities analyst Andrew Charles reiterates Restaurant Brands Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) with a Buy and maintains $70 price target.

TD Securities Reiterates Buy on Restaurant Brands Intl, Maintains $70 Price Target

Restaurant Brands International Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>) shares are <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">trading higher in premarket</a> on Wednesday.
The company reported fourth-quarter sales growth of 26.2% year-on-year to $2.296 billion, beating the analyst <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/n43651950/restaurant-brands-international-inc-reports-full-year-and-fourth-quarter-2024-results" rel="noreferrer noopener">consensus estimate of $2.274 billion</a>.
Consolidated comparable sales increased 2.5%, and net restaurants grew 3.4% versus the prior year. Consolidated system-wide sales increased 5.6%.
Comparable sales for Tim Hortons rose 2.2%, Burger King increased 1.1%, and Popeyes Louisiana Kitchen slipped 0.2%. Revenue for Burger King rose 8.6%, and Popeyes Louisiana Kitchen increased 10.4%.
Adjusted EPS of $0.81 <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beat the consensus estimate of $0.79.</a>
General and administrative expenses remained flat year over year. The operating income for the quarter climbed 35.6% to $635 million.
Restaurant Brands held $1.3 billion in cash and equivalents as of December-end. Net cash provided by operating activities for twelve months totaled $1.5 billion.
Restaurant Brands&#8217; Board of Directors has declared a dividend of $0.62 per common share, payable on April 4 to shareholders and unitholders of record on March 21.
&#8220;I am proud of our performance this year, reflecting the strong foundations we&#8217;re building across our businesses and the dedication of our teams and franchisees who are executing the fundamentals of quality, service, and convenience with excellence,&#8221; said CEO Josh Kobza.
Outlook: Restaurant Brands expects FY25 segment general and administrative expenses, excluding RH, of <a href="https://www.benzinga.com/calendars/guidance">$650 million &#8211; $670 million.</a>
Restaurant Brands&nbsp;continues to expect&nbsp;to achieve, on average, from 2024 to&nbsp;2028,&nbsp;comparable sales of 3%+, net restaurant growth of 5%+, and system-wide sales growth of 8%+.
Price Action: QSR shares traded higher by 3.29% at $69.10 in premarket at the last check Wednesday.
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Photo by Savvapanf on Shutterstock.

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