Restaurant Brands (QSR) Reports Next Week: Wall Street Expects Earnings Growth

Restaurant Brands (QSR) is anticipated to report strong financial results for the quarter ended June 2025, with Wall Street consensus projecting $0.97 EPS, a 12.8% year-over-year increase, and revenues of $2.34 billion, up 12.6%. Analysts have recently revised EPS estimates upward by 0.4%. The combination of a positive Zacks Earnings ESP of +0.15% and a Zacks Rank of #3 suggests QSR is likely to surpass consensus EPS estimates, which could positively influence the stock's near-term performance, though management's commentary on business conditions will be critical for sustained impact.

Analysis

Restaurant Brands International (QSR) is positioned for a likely earnings beat in its upcoming quarterly report for June 2025, scheduled for August 7. Consensus estimates project significant year-over-year growth, with earnings per share (EPS) expected to rise 12.8% to $0.97 and revenue to increase 12.6% to $2.34 billion. This bullish outlook is reinforced by a recent 0.4% upward revision in the consensus EPS estimate over the last 30 days. The company's proprietary metrics are favorable, with a Zacks Earnings ESP (Expected Surprise Prediction) of +0.15% combined with a Zacks Rank of #3 (Hold), a combination that historically indicates a nearly 70% probability of a positive earnings surprise. However, this optimism is tempered by a mixed track record, as QSR has only beaten EPS estimates in two of the last four quarters and posted a -3.85% miss in the most recent reporting period. The company's expected performance contrasts sharply with industry peer Jack In The Box (JACK), which is forecasted to report a 29.7% decline in EPS and a 7.8% drop in revenue, highlighting QSR's relative fundamental strength within the sector.

Key Decisions for Investors

• Given the strong consensus growth forecasts and a positive Earnings ESP of +0.15%, investors may consider positioning for a potential earnings beat and a subsequent near-term price increase.
• It is critical to weigh the optimistic forecast against the company's inconsistent surprise history, particularly the miss last quarter; therefore, management's forward-looking guidance on the earnings call will be crucial for assessing the sustainability of any stock movement.
• QSR's projected double-digit growth presents a notable divergence from the negative outlook for industry peer JACK, suggesting QSR is a candidate for outperformance and could be considered for an overweight position relative to competitors with weaker fundamentals.