Loop Capital upgrades Burger King's parent company, says stock can rally more than 20%

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Loop Capital upgraded Burger King parent company Restaurant Brands International to buy.

Burger King parent company Restaurant Brands International is leading a successful brand turnaround, according to Loop Capital. Following "another round of positive Burger King checks," the firm upgraded shares to buy from hold. Its price target of $81 suggests shares rallying 21.3% from where they closed on Thursday. According to analyst Alton Stump, Burger King's same-store sales gained 8.5% to 9% quarter to date through late September, topping estimates of 7.7% growth.

" The burger chain's Royal Crispy Wrap and Honey Mustard Royal Crispy Chicken Sandwich released mid-August have sold "surprisingly well," according to Stump. The wrap options have generated an estimated 3% to 3.5% lift to same-store sales to date, he noted. While the wraps are a limited-time offering, he cited an anonymous Burger King franchisee contact who said there is a good possibility that it could become a permanent menu addition.

 

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