Go to the list of all blogs
Rick Pendergraft's Avatar
published in Blogs
Oct 02, 2019

Short interest on Restaurant Brands International jumps tremendously in first half of September

You might not be familiar with the name Restaurant Brands International (NYSE: QSR), but you probably know the names of the restaurants it operates. The brands include Tim Hortons, Burger King, and Popeyes. Restaurant Brands operates over 4,800 Tim Hortons, 17,800 Burger Kings, and 3,100 Popeyes in approximately 100 countries around the world.

The company got my attention for a couple of reasons recently and both of them point to a possible rally in the stock. First, I received a bullish signal on Restaurant Brands on September 30 as the daily stochastic readings made a bullish crossover. Secondly, I noticed that the short interest on the stock jumped sharply in the first half of September.

Let’s look at the chart first. We see on the daily chart that the stock was trending higher after gapping up in January. There were a few dips along the way, but the pullback in the past month has been the most severe. The selling brought the 10-day RSI down close to oversold territory before it turned a little higher and the stochastic readings reached oversold territory before making the aforementioned bullish crossover.

I found the trend line to be particularly interesting as it touched the pre-gap high from January as well as the low in March. The low at the end of May/beginning of June also touches the trend line and now this recent dip hits it yet again.

The Tickeron Price Growth Rating for Restaurant Brands is 23 and that indicates outstanding price growth. The stock price has grown at a higher rate over the last 12 months than S&P 500 index constituents. A rating of 1 points to highest price growth (largest percent return) while a rating of 100 points to lowest price growth (smallest percent return).

Turning our attention to the short interest on Restaurant Brands, the number of shares sold short jumped from 6.6 million at the end of August to 22.96 million on September 13. That is one of the biggest jumps in short interest I have ever seen and I have been watching short interest changes for almost 20 years now. The jump caused the short interest ratio to jump to 10.1 and that is extremely high. The average short interest ratio is in the range of 3.0.

From a contrarian perspective, the big jump in short interest and the high short interest ratio are both good signs. For the stock to maintain its upward trend while so much selling pressure has been applied is incredible. Secondly, if the stock resumes its upward trend, the short sellers may have to close their positions and that can add tremendous buying pressure to the stock.

As for the fundamentals for Restaurant Brands, the Tickeron SMR rating is 25, indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.

The Tickeron PE Growth Rating for the stock is 29 and that indicates outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The company has seen earnings grow by an average of 27% per year over the last three years while sales have increased by an average of 12% per year over that same time period. In addition, the company boasts a return on equity of 64.8% and a profit margin of 28.3%. Both of those readings are outstanding.

Related Ticker: QSR

QSR sees MACD Histogram just turned negative

QSR saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on March 22, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The 10-day RSI Indicator for QSR moved out of overbought territory on March 14, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where QSR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

QSR broke above its upper Bollinger Band on March 05, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

The Momentum Indicator moved above the 0 level on April 01, 2024. You may want to consider a long position or call options on QSR as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

QSR moved above its 50-day moving average on February 29, 2024 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for QSR crossed bullishly above the 50-day moving average on March 06, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where QSR advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 293 cases where QSR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Fundamental Analysis (Ratings)

Fear & Greed

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.576) is normal, around the industry mean (7.348). P/E Ratio (20.864) is within average values for comparable stocks, (180.936). Projected Growth (PEG Ratio) (2.490) is also within normal values, averaging (1.987). Dividend Yield (0.028) settles around the average of (0.033) among similar stocks. P/S Ratio (5.094) is also within normal values, averaging (2.473).

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. QSR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

Notable companies

The most notable companies in this group are McDonald's Corp (NYSE:MCD), Starbucks Corp (NASDAQ:SBUX), Chipotle Mexican Grill (NYSE:CMG), Yum! Brands (NYSE:YUM), Darden Restaurants (NYSE:DRI), Domino's Pizza (NYSE:DPZ), Yum China Holdings (NYSE:YUMC), Shake Shack (NYSE:SHAK), Noodles & Company (NASDAQ:NDLS).

Industry description

The industry includes companies that operate full-service restaurants, fast food restaurants, cafeterias and snack bars. McDonald's Corporation, Starbucks Corporation, YUM! Brands, Inc. and Restaurant Brands International Inc. are some of the largest U.S. restaurant-owning companies in terms of market capitalization. While restaurant spending could be viewed as discretionary for consumers, some companies in the business have been able to weather economic cycles by establishing strong loyalty among customers over the years. Many of them also have a strong global presence as well.

Market Cap

The average market capitalization across the Restaurants Industry is 7.55B. The market cap for tickers in the group ranges from 6.73K to 203.58B. MCD holds the highest valuation in this group at 203.58B. The lowest valued company is AMHG at 6.73K.

High and low price notable news

The average weekly price growth across all stocks in the Restaurants Industry was 2%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 7%. ODDAF experienced the highest price growth at 95%, while PNST experienced the biggest fall at -19%.

Volume

The average weekly volume growth across all stocks in the Restaurants Industry was -17%. For the same stocks of the Industry, the average monthly volume growth was -25% and the average quarterly volume growth was 5%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 46
P/E Growth Rating: 65
Price Growth Rating: 52
SMR Rating: 66
Profit Risk Rating: 81
Seasonality Score: 8 (-100 ... +100)
View a ticker or compare two or three
QSRDaily Signal changed days agoGain/Loss if shorted
 
Show more...
Ad is loading...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

an operator of restaurants

Industry Restaurants

Profile
Fundamentals
Details
Industry
Restaurants
Address
130 King Street West
Phone
+1 905 339-6011
Employees
9000
Web
https://www.rbi.com
Ad is loading...
Discover the dynamic world of cryptocurrency trading with Tickeron's AI analysis. Capitalize on bullish and bearish patterns in Origin Protocol (OGN.X), with gains up to 27.80%. Stay ahead with Tickeron's real-time insights and make informed trading decisions. #CryptoTrading #AIAnalysis #OriginProtocol #InvestSmart
#latest#popular#patterns#artificial_intelligence#trading#technical_analysis
Dive into the world of trading excellence with our Best AI Robot of the week! In a market characterized by growth, the key to maximizing profits lies not only in mainstream large-cap stocks but also in exploring opportunities across different market segments.
This article delves into the performance of AI trading robots, specifically those utilizing the "Swing trader: Long-Short Equity Strategy (TA&FA)." These bots showcased their prowess by delivering a notable +4.98% gain while engaging in MRNA trades over the previous week. Beyond mere statistics, we explore the technical indicators and recent earnings report of MRNA to shed light on the underlying dynamics influencing the stock.
Artificial intelligence (AI) trading bots have become powerful tools for investors seeking active trading opportunities. In a recent analysis conducted on the "Day Trader: High Volatility Stocks for Active Trading (TA&FA)" platform, AI trading bots exhibited impressive performance, generating a noteworthy +4.81% gain while actively trading Shopify (SHOP) over the course of the previous week.
In the dynamic world of finance, strategic asset acquisition is a game-changer. Recently, a group of stocks within this domain has been in the spotlight, showcasing notable performances and intriguing patterns. This article delves into the recent movements of these stocks, focusing on key indicators, market capitalization, notable price events, and volume dynamics.
Urology companies, comprising EDAP (EDAP), Teleflex (TFX), and UroGen Pharma (URGN), have shown a remarkable +6.67% increase in performance over the last week. In this analysis, we delve into various indicators and metrics to better understand the current landscape and individual trajectories within this thematic sector.
In the ever-evolving landscape of financial markets, Artificial Intelligence (AI) trading robots have emerged as potent tools for investors seeking an edge. The recent performance of the AI trading robots accessible through "Swing Trader, Popular Stocks: Short Bias Strategy (TA&FA)" has caught the attention of market participants. Notably, these bots generated an impressive +10.22% gain in a week, with a focus on trading TSM (Taiwan Semiconductor Manufacturing Company).
In the fast-paced world of stock trading, artificial intelligence (AI) has become a game-changer, with trading robots demonstrating impressive results. The "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" platform recently showcased the effectiveness of its bots, generating a notable +7.86% gain while actively trading AMD over the past week.
​​​​​​​Aluminum companies have witnessed a remarkable surge in performance, with a collective increase of +8.75% over the past week. In this analysis, we delve into the dynamics of this surge, focusing on key indicators and individual stock movements. The tickers in focus are CENX, AA, KALU, and CSTM.
​​​​​​​Propane gas companies, represented by tickers NGL, SGU, and SPH, have exhibited a remarkable +8.22% increase in performance over the past week. This surge is substantiated by various technical indicators, fostering a positive outlook for investors. In this analysis, we delve into key indicators, market capitalization, notable price movements, and volume fluctuations to provide a comprehensive understanding of the current landscape.
In the fast-paced world of AI trading, algorithms powered by sophisticated technical analysis tools are making waves. The "Swing trader: Top High-Volatility Stocks v.2 (TA)" bots have proven their mettle, securing a remarkable +6.02% gain in a week of trading AVGO.
Artificial intelligence (AI) trading robots have become an integral part of the market landscape. One such example is the "Swing Trader, Popular Stocks: Short Bias Strategy (TA&FA)" bot, which showcased impressive results with a +5.54% gain while trading LRCX over the past week. In this article, we delve into the technical analysis of LRCX, examining its recent earnings report and broader industry trends.
The drilling industry has recently experienced a commendable upswing, with a substantial 8.22% surge in performance over the past week. In this article, we will dissect the current dynamics of key players in this sector, focusing on prominent tickers such as DO, RIG, HP, NBR, NR, PDS, and PTEN.
In the realm of AI-driven trading, the "Swing Trader: ETFs for Growing Industries (TA)" platform recently showcased impressive results, with its trading bots generating a noteworthy +5.09% gain while actively trading TQQQ over the past week. As we delve into the intricacies of these AI trading strategies, let's dissect the recent earning results and market indicators to better understand the driving forces behind their success.
In the fast-paced world of AI-driven trading, the utilization of sophisticated algorithms and technical analysis tools is becoming increasingly prevalent. One notable example is the Trend Trader, Popular Stocks: Price Action Trading Strategy (TA&FA), which demonstrated its prowess by generating a commendable +5.02% gain while trading NVDA over the past week. Let's delve into the technical indicators and earnings results to gain a comprehensive understanding of NVDA's current market standing.
In the fast-paced realm of biotech and pharmaceuticals, a group of stocks, including giants like Johnson & Johnson (JNJ), Amgen (AMGN), Pfizer (PFE), Astex Pharmaceuticals (ATXS), AnaptysBio (ANAB), and Zymeworks (ZYME), witnessed a noteworthy 8.55% surge in performance over the past week. However, a closer look at various indicators suggests caution, signaling a potential downturn.
In the dynamic landscape of the energy sector, onshore oil exploration companies have recently experienced a remarkable upswing, with a notable 7.13% increase in performance over the past week. This surge has captivated market attention, and several key indicators point towards a sustained positive outlook. In this analysis, we delve into the financial health, market dynamics, and recent events surrounding prominent tickers in this domain - PXD, CNQ, PDS, PTEN, and FANG.
Tickeron's Quant team is delighted to introduce our latest AI-powered robot designed for trading small-cap stocks, employing a distinctive fundamental stock analysis algorithm. This algorithm, renowned for its blend of in-depth analysis and intuitive signal-following capabilities, is well-suited for both novice and seasoned traders.
In the dynamic world of stock trading, the utilization of AI trading robots has become increasingly prevalent. One such example is the "Trend Trader, Popular Stocks: Price Action Trading Strategy (TA&FA)," which showcased its prowess by yielding a remarkable +4.98% gain while trading ZIM over the previous week. As we delve into the intricacies of ZIM's recent performance, let's analyze the earnings results, market indicators, and industry trends that shape the narrative.
In the ever-evolving landscape of financial markets, artificial intelligence (AI) trading bots have emerged as powerful tools, providing investors with automated strategies to navigate the complexities of stock trading. In this analysis, we delve into the recent performance of AI trading robots, specifically those accessible through "Trend Trader, Popular Stocks: Price Action Trading Strategy (TA&FA)," which demonstrated a remarkable +4.67% gain while trading MRVL over the previous week.