During the next four quarters, analysts are expecting Restaurant Brands International’s (QSR) revenue growth to outperform its peers. In the same period, analysts are expecting it to post revenue growth of $4.9 billion compared to $4.5 billion in the corresponding four quarters of the previous year. Revenue growth is expected to be driven by the addition of new restaurants and positive SSSG (same-store sales growth).
QSR is expected to be followed by Wendy’s (WEN) with revenue growth of 3.1%. Revenue growth is expected to be driven by positive SSSG and the addition of new restaurants. SSSG is expected to be driven by the expansion of its delivery service, menu innovations, the implementation of technological advancements such as mobile ordering and kiosks, and image activation to drive revenue.
Wendy’s (WEN) is followed by McDonald’s (MCD). Analysts are expecting McDonald’s revenue to fall 12% from $23.5 billion to $20.7 billion in 3Q17. Analysts are expecting the refranchising of company-owned restaurants to lower the company’s revenue. However, positive SSSG is expected to offset some of the declines. SSSG is expected to be driven by the expansion of delivery services, the implementation of technological advancements, and value offerings such as the dollar menu.
Analysts are expecting the revenue of Jack in the Box (JACK) to fall 14.2%, from $1.6 billion to $1.3 billion. The refranchising of company-owned restaurants is expected to lower JACK’s revenue. To improve SSSG, management plans to introduce delivery service in 58% of its restaurants by the end of 2018. It’s also focusing on rolling out its mobile application and menu innovations.
Next, we’ll look at the EBIT (earnings before interest and tax) margins of fast food restaurants in 3Q17.