Restaurant Brands International Gets $87 Price Target Lift, Popeyes Service Revamp
Truist raised Restaurant Brands International’s price target to $87 from $83 while maintaining a Buy rating, backing confidence in long-term growth from U.S. turnarounds and Tim Hortons momentum. RBI will expand Popeyes’ field teams by 75% and refocus on core menu execution to address recent sales declines.
1. Investor Day Boosts Price Target
Truist increased the price target on Restaurant Brands International to $87 from $83 and reaffirmed a Buy rating after Investor Day, citing progress in the Burger King U.S. turnaround, clearer visibility into new store development in China, and sustained momentum at Tim Hortons Canada. The company is simplifying its operating model to pursue investment-grade status and plans to return roughly 4.6% of market capitalization to shareholders in 2026 while de-emphasizing mergers and acquisitions.
2. Popeyes Turnaround Strategy
Newly appointed Popeyes president Peter Perdue is prioritizing light-touch improvements, leveraging the chain’s recent build cycle to avoid expensive remodels. With unit count up nearly 30% since the 2019 chicken sandwich launch, recent limited-time offers eroded core guest loyalty and service scores. RBI will bolster field teams by about 75%, implement shoulder-to-shoulder restaurant training in New Orleans, and revive Experience Rallies to improve execution of bone-in chicken, tenders, and the signature chicken sandwich.