As you might know, Restaurant Brands International Inc. (NYSE:QSR) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 2.2% to hit US$1.7b. Statutory earnings per share (EPS) came in at US$0.72, some 4.6% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Restaurant Brands International after the latest results.

Taking into account the latest results, the current consensus from Restaurant Brands International's 14 analysts is for revenues of US$7.53b in 2024. This would reflect a modest 5.0% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to descend 16% to US$3.26 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$7.49b and earnings per share (EPS) of US$3.67 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$85.66, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Restaurant Brands International, with the most bullish analyst valuing it at US$94.00 and the most bearish at US$72.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Restaurant Brands International'shistorical trends, as the 6.7% annualised revenue growth to the end of 2024 is roughly in line with the 6.6% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.7% annually. So although Restaurant Brands International is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Restaurant Brands International. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$85.66, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Restaurant Brands International going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Restaurant Brands International has 3 warning signs (and 1 which is significant) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.