Strong sales of new products has reenergized this brand. The company has produced some offerings that shake up the current fast food market place where hamburgers have been king for 50 years.
Shake Shack reported an earnings beat after the bell but guidance was soft because of the new offerings from competing restaurants like Burger King.
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QSR - Restaurant Brands Inc - Company Description
QSR is the new name for the Burger King and Tim Hortons brands. Both have been serving customers for more than 50 years. QSR currently operates more than 19,000 restaurants in 100 countries with more than $23 billion in sales. The name change and rebranding came a year ago when Burger King bought the Tim Hortons chain.
QSR has been flying under the radar for the last year with all the news about McDonalds all day breakfast and Starbucks expanded menu. They reported earnings of 35 cents that beat estimates of 31 cents.
Same store sales rose +5.6% at Tim Hortons and 5.4% at Burger King.
Burger King sales are accelerating because of a flood of new menu items. They have Chicken Fries, which are fries dipped in fried chicken batter and fried. They have Jalapeno Chicken Fries. On February 23rd they introduced the Whopper Hot Dog. This is a foot long hotdog flame grilled and served with whatever you want on them.
Burger King received tons of free press when the new hot dog was delivered. Some food aficionados are calling the hot dog a "culinary calamity." Others called is a "disgusting disgrace" but customers are waiting in line to order them.
Franchisees claim the demand has been "overwhelming" and while only a couple weeks old they are selling over 100 a day and rising rapidly as more customers realize they are available. Americans eat more than 20 billion hotdogs a year.
QSR will present at the UBS Global Consumer Conference on March 9th at 2:30 ET.
Earnings are May 27th.
QSR shares are currently $37.85 and a breakout over resistance at $37.65 is in progress. I am recommending we buy the April $39 call, currently $1.10, and plan on exiting at $41 if that higher level of resistance slows the rally.
With a QSR trade at $38.15
Buy April $39 call, currently $1.10, no initial stop loss.
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No New Bearish Plays