Zacks Investment Research upgraded shares of Burger King Worldwide, Inc. (BKW) from NEUTRAL to OUTPERFORM on November 21, 2014, with a target price of $40.00.
We upgrade our recommendation on Burger King to Outperform from Neutral owing to the company's consistent earnings growth. Burger King's earnings have not missed the Zacks Consensus Estimate since 2013. In the third quarter, the company posted in-line earnings of $0.27 per share that grew 18.4% year over year driven by higher revenues. Revenues increased 1.4% year over year due to comps growth. In fact, the company has been consistently delivering positive comps over the past few quarters. The upside reflects Burger King's sales initiatives, which include product introductions, restaurant upgrades and improved operations. Exposure to faster-growing international markets is the key to Burger King's expansion plans. Additionally, we are encouraged by its cost cutting initiatives, which are expected to boost earnings in the upcoming quarters. Also, the company's merger deal with Tim Hortons keeps us optimistic.
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