Restaurant Brands International (QSR.TO)

Great company. The real key to how they do in 5 years is how they do in the US and how they do internationally. Will continue to grow in Canada and hopefully, in the US they will continue to execute. Internationally is another question. Likes the stock longer-term.

Has performed quite well in the last few weeks. A hedge fund had taken a position on the company and the company has decided to take on some debt and repurchase about 10% of their outstanding shares. Also, re-examined their US growth strategy to make some decisions and she would like to wait to see what they decide to do. Would prefer it at around $55.

2 activists are pushing hedge funds and he agrees with their findings that this company should take on some leverage to buy back stock. At this price, it is no longer a reasonable bargain. Not sure what they should do. If it fell 10% from this point, he would consider it as an opportunity.

He has recently started paying more attention to this because a couple of activist shareholders in the US have got the bit in their mouths and are hammering away about different things. Until they are satisfied, you are probably going to see some upward pressure in the stock. Good company. 1.8% dividend yield.

Scout Capital is recommending that they increase leverage to 3X EBITDA, which he feels is a very valid point. They don’t have the large-scale that they need to be in the US so they have very little control over their facilities, etc. Feels they should pull back from the US as there is a lot of competition there. Can still make a lot of money in this country. Great business, great franchise and a great brand-name.

She would add at this level. Likes it over the next 3-5 years. They are under some activist pressures to do something to surface more value. New CEO. Target price of around $60.

For many years was a great stock. Built out their business but problem is where is growth going to come from? The US market was a struggle for them. It is hard to see where you could put another one. Dunkin Donuts has a much lower multiple.

Really likes this company. Great consumer franchise. Same-store sales have slowed down a little and their US expansion is hitting a few road bumps. An activist franchise wants the company to pare back its US growth and borrow billions to fund a share buyback. Doesn’t think this will work so there could be a pull back if it fails which might be an opportunity to take some short-term profits and buy it back cheaper.

19 times earnings. Same as dollarama abut DOL-T has much better growth potential. Growth in Canada is capped out. New CEO will have to devise plans. $70 in DOL-T would be an entry point.

Growth is getting a little more challenged. Very good company but valuation, given its growth outlook now, is a little bit pricey. As growth slows, there’ll be less capital for expansion, which will allow them to increase their dividend. Mid-$40 would be a better entry point for this one.

Starting to turn the corner. Same-store sales last quarter beat expectations, higher average cheque, transaction growth in the US but slow transaction growth in Canada. They upped their dividend.

Likes this company. He doesn’t own but has it in clients’ holdings. Solid company.

One of the issues with this company is that they have not made tremendous headway in their brand recognition in the US. Main strategy seems to be to increase same-store sales in Canada. Trading around 18X earnings and long-term growth is about 12%. Still a little expensive. Would prefer others. (See Top Picks.)

Has had a great run, good quarterly results recently. He tried to stay away from retailers because it is a more competitive space. Is a market leader but the retailing space is quite limited.

Remarkable Canadian story. There is an attachment. But separate the emotional side. It is expensive and has been a grower. But they can’t get the US going with the same traction. Sell but buy the coffee.