Restaurant Brands International Inc. (NYSE:QSR) is a restaurant chain known for operating well-known brands such as Burger King and Popeyes. Its shares have performed quite well as they are up by 18.9% over the past year and by 14.5% year-to-date. On the 6th, the day that Cramer discussed Restaurant Brands International Inc. (NYSE:QSR), the firm reported its second-quarter earnings before market open. Cramer was happy with the result:
“Burger King, there’s a guy, Pat Doyle, he used to run. . .Domino’s. He’s in there and he’s the executive chair but, he comes on the show. And what a story they have, what a story they have. They have a fabulous story. And it’s worldwide and it’s really good. . .now, I’ve got to [inaudible], Texas Roadhouse is amazing, Cheescake Factory was amazing, Brinker’s amazing, those are the three that I really love. . . well that’s Kevin Hochman. Remember Kevin Hochman has a budget and he switched almost all to online and it’s really working. That’s how you get the customers. He has a ten dollar meal and he does online advertising. And that is how you win.”
Restaurant Brands International Inc. (NYSE:QSR)’s second-quarter earnings saw it post $2.52 billio in revenue and $1.07 in adjusted earnings to meet analyst revenue estimates and beat them for the earnings. With the firm managing a diverse brand portfolio, its Burger King brand led the bullish narrative. The brand’s same-store sales grew by 8.5% in the quarter and vastly outpaced McDonald’s 0.8% growth rate. Yet, the split in Burger King’s performance and that of other brands lent credence to the bearish viewpoint. Popeyes’ US same-store sales fell by 5.2% while Tim Horton’s Canada same-store sales did not post growth. Additionally, during the call, management admitted that the effects of inflation and high gas prices on low-income consumer spending would continue. Reliance on debt to finance purchases such as those of Carrols have also led to a high leverage ratio of 4.1x. However, this ratio is roughly in line with that of peers except for McDonald’s.
Shifting towards Brinker International, Inc. (NYSE:EAT), the firm is one of Cramer’s favorites in the space as he has praised its CEO on multiple occasions. Compared to QSR, the firm’s fiscal second quarter results posted on August 12th demonstrated hefty growth as corporate revenue and company sales grew by 5.05% and 4.99%. Consolidated same-store sales grew by 5% during the quarter, with Chili’s leading the charge courtesy of its 5.6% growth. However, Maggiano’s same-store sales dipped by 2.6% to reflect the weakness in the sector, fueled by lower corporate spending and a focus on premium offerings.
Like Cramer, the hedge funds also appear to favor Brinker International, Inc. (NYSE:EAT) as 49 funds owned a stake in Q1 2026. On the other hand, QSR had attracted 31 funds. Similarly, Chili’s success also appears to have provided Brinker International, Inc. (NYSE:EAT) with a richer valuation, courtesy of a 19.19 forward P/E, which is higher than QSR’s 12.89. Yet, short interest in Brinker International, Inc. (NYSE:EAT) is significantly higher, as 17.59% of the float was short as of July-end. For QSR, this figure was 5.95%.
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Disclosure: None.
