June 25, 2019 / 11:08 AM / 4 months ago

BUZZ-CS says Restaurant Brands "maintains claim to throne", starts coverage with 'outperform'

** Credit Suisse initiates coverage on U.S.-listed shares of Restaurant Brands with “outperform” and price target of $78

** Brokerage says accelerating same-store sales and sustainable global unit growth across portfolio should support multiple expansion close to the high-end of heavily franchised peers

** CS, in a note titled “maintains claim to throne”, says it expects QSR to generate global unit growth of 5.5% over the next four years

** Burger King’s plans to roll out the Impossible Whopper nationwide by end of 2019 could contribute at least 460 basis points to U.S. same-store sales - CS

** Expects Tim Hortons to focus on improving the existing business in Canada through a slate of sales initiatives - CS

** Says Popeyes will become a more meaningful growth driver over time though competitive pressure will continue to weigh on U.S. same-store sales this year

** Says QSR currently trades at 4% discount to peers but accelerating same-store sales at Burger King U.S. and Tim Hortons Canada, and execution against robust unit growth should help it trade at premium

** Of the 13 brokerages covering stock, 8 rate it “buy” or higher, 4 “hold” and 1 “sell”; Median PT is $70

** Up to Monday’s close, shares had risen ~34% this year (Reporting by Debroop Roy in Bengaluru)

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