Shares of Restaurant Brands (ASX:RBD) from New Zealand took a hit of approximately 4.5% to NZ$5.35, the least they’ve been since May 2017.

The stock took a 12.2% fall on Monday and is down by about 2.6% this year, as of the last close.

Macquarie has decided to cut the price target to NZ$8.91 per share from NZ$10.24 per share, but it maintains an ‘outperform’ rating.

It’s anticipated by Macquarie that FY23 results will denote the lowest of the earnings cycle, and has consequently cut its FY23 earnings per share estimate by 55%.

Previously, Restaurant Brands had predicted its FY net profit after tax to sit between NZ$12 million and NZ$16 million, whilst the consensus estimate was NZ$35 million, according to Macquarie.

The inflationary environment has continued to change and the H2 recovery will be weaker than what Restaurant Brands expected.

Macquarie proposes it is crucial for Restaurant Brands' pricing strategy to continue supporting sales volumes and maintaining its competitiveness in the future.

The broker projects the normal earnings bias to 2H to be much more pronounced than normal.

Restaurant Brands is a fast-food company headquartered in New Zealand.