Restaurant Brands International (TSX:QSR, NYSE:QSR) has received an improved sales outlook from Jefferies, which raised its forecast for Burger King's US same-store sales growth in the third quarter to 6.5% from 5%, as the fast-food chain's turnaround gains traction. The broker said customer footfall had remained relatively steady after Burger King delivered 8.5% comparable sales growth in the second quarter, supporting expectations that momentum could extend into 2027.
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Burger King is refranchising hundreds of its company-owned restaurants as part of its turnaround. The burger chain is prioritizing franchisees who live close to their locations and visit them regularly.
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According to Burger King's latest franchise disclosure document (FDD), the fast-food restaurant chain operated 6,650 locations across the United States at the end of fiscal year 2025, a net loss of 51 stores compared with the 6,701 it operated at the start of the year.
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Restaurant Brands International is upgraded to a buy as Burger King's turnaround drives market share gains over McDonald's. QSR's valuation has improved, with a TTM PE of 18.5 and low FCF growth requirements supporting upside potential. Burger King's 8.5% comp sales growth and successful 'Reclaim the Flame' campaign highlight effective management and turnaround execution.