The investors in Restaurant Brands Asia Limited's (NSE:RBA) will be rubbing their hands together with glee today, after the share price leapt 31% to ₹87.74 in the week following its first-quarter results. Revenues were ₹8.2b, and Restaurant Brands Asia came in a solid 13% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Restaurant Brands Asia's five analysts are now forecasting revenues of ₹32.9b in 2027. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Losses are expected to hold steady at around ₹2.40. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹32.3b and losses of ₹2.61 per share in 2027. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
View our latest analysis for Restaurant Brands Asia
The average price target rose 8.2% to ₹91.56, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Restaurant Brands Asia, with the most bullish analyst valuing it at ₹120 and the most bearish at ₹76.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Restaurant Brands Asia shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. So although Restaurant Brands Asia is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Restaurant Brands Asia analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Restaurant Brands Asia .
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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.