QSR Maintained by Citigroup -- Price Target Lowered to $79.00

Jefferies raised its forecast for Burger King's US same-store sales growth to 6.5% for Q3, citing turnaround progress. The broker expects Burger King's value-focused marketing and product upgrades to sustain momentum. Restaurant Brands International (QSR), Burger King's parent company, saw its outlook strengthened, though Jefferies maintained a 'hold' rating and $80 price target. Popeyes' Q3 sales are expected to decline 2%, while Tim Hortons (THI) is forecast to see 1% growth.

Starbucks (SBUX) reportedly explored acquiring Chipotle (CMG), with CMG shares rising 4.58% and SBUX falling 3.09% on the news. The potential deal faces challenges due to fluctuating stock prices. Chipotle reports earnings this month. Other restaurant sector moves include Yum! Brands (YUM) selling Pizza Hut and activist interest in Wendy's (WEN).

The Federal Reserve raised interest rates by 25 basis points, the first hike in three years, to combat inflation. Restaurant stocks are under pressure due to declining customer traffic. Companies like Restaurant Brands International (QSR) and Yum! Brands (YUM) may benefit from value menus. The Cheesecake Factory (CAKE) reported strong sales and profit margins. Investors should focus on companies that can maintain traffic and profitability amid rising rates.

Restaurant Brands International (RBI) (TSX: QSR) (NYSE: QSR) announced a renewal of its normal course issuer bid (NCIB) to repurchase up to U.S.$1,000 million of its common shares through September 30, 2027. The company may purchase up to 34,404,688 shares, representing 10% of its public float, on the TSX, NYSE, or alternative trading systems. RBI repurchased 2,910,671 shares under its previous NCIB at an average price of U.S.$74.97 per share. The repurchases will be funded using RBI's cash reso

Burger King President Tom Curtis comments on Trump's 90-day tariff-free beef import plan. While ranchers oppose it, fast-food chains like Restaurant Brands International (QSR), McDonald's (MCD), and Wendy's (WEN) may benefit from lower meat costs. The impact on next quarter's earnings is uncertain.

Restaurant Brands International (QSR) reports strong U.S. same-store sales growth for Burger King at 8.5% in Q2, outpacing McDonald's. The company's Reclaim the Flame initiative and Whopper relaunch have driven market share gains. However, Tim Hortons' growth slowed to 0.1%, and Popeyes saw a 5.2% decline in U.S. same-store sales. International sales rose 5.5%, with Burger King and international segments showing expansion.