Fast Food Giant Eyes Seventh-Straight Win

Puts are winning out in the options pits, however

Deputy Editor
Aug 4, 2022 at 11:35 AM
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Restaurant Brands International Inc (NYSE:QSR) is enjoying a post-earnings pop today, up 6.6% at $58.61. The Burger King and Popeye's parent posted second-quarter profits of 82 cents per share, topping analyst expectations of 73 cents, alongside better-than-expected revenue of $1.64 billion. 

QSR is on track for its seventh-straight win -- now just a chip-shot away from its year-to-date breakeven level. Today's positive price action has the stock jumping above the 200-day moving average as well, a trendline that kept a cap on yesterday's gains. 

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio ranks higher than 96% of readings from the past year. This bearish sentiment is ramped up today, with 2,054 puts and 873 calls exchanged so far. The August 55 put is the most active, followed by the September 60 call. 

Though there has been a bout of short-covering over the past couple weeks, with short interest down 19.1% over that time, it would take nearly eight days to cover bearish bets, at QSR's average pace of trading. 

Analysts have yet to chime in today, though there is plenty of room for optimism. Of the 20 in coverage, eight carry a "buy" or better rating, 10 a "hold," and two a "sell" or worse. Plus, the 12-month consensus price target of $61.13 is a slim 4.3% premium to current levels. 

 

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