Restaurant Brands International (QSR.TO)

Does not currently own stock, but likes company. Internationally one of largest restaurant companies in the world. Diverse cash flow basis. Excellent brand value that can weather a recession. Would recommend holding stock if already own it. Safe dividend yield around 3%. 

It should be higher. Burger King disappointed last quarter, but Horton's is doing much better and Popeye's is growing. Fast food isn't disappointing and there remains growth.

Large portfolio of defensive brand names (Burger King, Tim Hortons). Large cap with lots of liquidity in stock. Current share price presenting good buying opportunity. Trading at cheaper valuation than USA peers. Expecting growth in same store sales, revenues and cash flow. Good investment for long term holders. 

High quality. Recognizable brands. Stream of revenue from franchisees. Efficient management team, not afraid of innovation. A lot is riding on the new CEO. Pricing power. 30% ROE. 20x earnings. If price dropped to $90, buy more aggressively. Yield is 3%.

It has a new CEO who did very well with Dominoes. The franchises are now much better run. There are good changes at Tim Horton's, Burger King has a big ad campaign, and Popeye's is growing very fast. It is trading at 2/3 of the multiple of other fast food chains. Yes there are higher labour costs but it is a high margin business and recession resistant. He feels it is cheap because of past problems and has a big upside. In general people are now spending lots of money dining out.     Buy 15  Hold 15  Sell 1

It has done well, but the valuation is not compelling. Shares are always too high for him. Yes, Restaurant is picking up after Covid, but consumers are cutting back on discretionary purchases like coffee.

He'd take BCE in a heartbeat from a safety aspect. Better yield, cheaper valuation, growth is tied to the economy. QSR has done a good job with its divisions, though Tim's has been a challenge. Profits are now being squeezed pretty dramatically. He's nervous on consumer stocks.