Restaurant Brands International (QSR.TO)

A well-run company, he thinks. They have come off the lows after a good earnings report. Franchisees are upset, but the owners have a history of doing business this way. Management is strong and have consistently hit ROE targets. He prefers MTY Food Group Inc. (MTY-T), who focuses more on food courts.

They are terrific operators and have Warren Buffett in their corner. However they have upset franchise owners of Tim Hortons and Burger King. They are the juicer and the franchisees are the lemon: they are trying to squeeze every drop from the franchisees, but if franchisees can't make a good living, they will lose interest in the business. He doesn't own QSR because he is dubious that their model will translate into Canada. He doesn't think that Tim Hortons fits their model well. He used to own Tim Hortons and loved it and feels bad that he can't own it now, because it is part of QSR. He thinks that the tension created by QSR's model is holding back growth.

Sold his shares 6 months ago. It's always been a rich stock. He likes their foot traffic and demand across their various brands. It's not his favourite consumer name. Instead, he prefers McDonald's, or Facebook or a gambling stock. QSR is doing okay, not bad, doing well for shareholders but it's upsetting franchisees (who continue to make money off the brand). It's now not cheap at 22X earnings.

It has been a bumpy ride recently. It is probably a good entry point. Recently there was bad press about unhappy franchisees. Longer term they continue to innovate and come up with new products. He thinks they will continue to make acquisitions as well.

Is the dividend safe? They had troubles with their franchises. A famous guy in the US disclosed recently that he shorted this stock. Management has done a good job turning around Burger King and Popeyes. Earnings growth 20% and trades at 18 times 2019. Way cheaper than its 4-year average. Nice and safe dividend yield of 3.3%. He thinks it is a winner.

They had troubles with their franchises. A famous guy in the US disclosed recently that he shorted this stock. Management has done a good job turning around Burger King and Popeyes. Earnings growth 20% and trades at 18 times 2019. Way cheaper than its 4-year average. Nice and safe dividend yield of 3.3%. He thinks it is a winner. (Analysts’ price target is $85.52)

It consolidated in 2015, then broke out at the start of 2016, but now we're seeing lower lows and lower highs. Let it play out. But it's in a downtrend.

He does not own any restaurant franchise companies. Dunkin donuts is having issue today. There is a disconnect between franchisors and franchisees.

Tim Horton's, Popeye's, Burger King. A number of the Tim's franchisees have become quite vocal recently. Costs have gone up. There is bad blood. It is possible that they are too fixed on cutting costs and not on the customer. All of the packaged foods companies have been pressured recently. He prefers CARA-T.

The parent of Tim Hortons. He hates the way this company operates. They squeeze people out and especially the franchisees. He does not respect the organization anymore. He stays away from this on principle.

Bad headline news about Tim Horton's franchisees doesn't help. She'd buy Yum! Brands (YUM-N) (KFC, Pizza Hut) instead because of its presence in China and now India.

He owns it. Given what is happening with the franchisees and with minimum wages you want to be patient with this name. Longer term is a great franchise. Valuation is pretty decent trading 21 times earnings with a 15% expected growth rate. Good brands underneath the umbrella (Tim’s, Burger King, etc.). In the meantime, you get a 3.3% dividend yield which is not bad given where rates are in Canada.

Solid franchiser. Tim Hortons and Burger King are the primary names. Tim Horton is struggling now. Cost-cutting seems to have gone a little overboard and potentially has jeopardized the relationship with franchisees. Still an expensive name.

A little bit of a problem company. An acquirer. Big holdings are Tim Hortons and Burger King. They tend to squeeze as much as they can from the franchisees and try to grow sales. They had many problems with Tim Hortons franchisees and that hurt the stock. People are not so much in love with the stock. Valuation was well overdone, and he would worry at this level.

Recently bought this. Burger King is doing quite well though Timmy's has been flat. Good combo of 3% dividend and growth. (Analysts price target: $90.35)