Stock of the Day

Restaurant Brands International (QSR)

$74.07

+$1.66 (+2.3%)

Market Cap: $25.25B

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS).

The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.

Restaurant Brands International Bull Case

Here are some ways that investors could benefit from investing in Restaurant Brands International Inc.:

• The stock is currently trading at $72.44, which is below the consensus price target of $84.04, suggesting potential upside for investors.
• The company has a strong dividend yield of 3.65%, which is attractive for income-focused investors.
• Restaurant Brands International Inc. has a low beta of 0.52, indicating that the stock is less volatile than the overall market, which can be appealing to risk-averse investors.
• The company has a strong financial position, with a net margin of 13.12% and a return on equity of 33.43%, indicating efficient use of capital and profitability.
• The company has a diversified portfolio of well-known restaurant brands, including Burger King, Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs, which provides a broad customer base and reduces reliance on a single brand.

Restaurant Brands International Bear Case

Investors should be bearish about investing in Restaurant Brands International Inc. for these reasons:

• The company has a high debt-to-equity ratio of 2.49, which indicates a significant amount of debt relative to its equity, potentially increasing financial risk.
• The stock has a 52-week low of $64.52 and a 52-week high of $81.96, indicating a wide range of price movement and potential volatility.
• The company has a high short interest, with 18,346,137 shares shorted, which could indicate bearish sentiment among investors.
• The company has a high institutional ownership of 82.29%, which could lead to significant selling pressure if institutional investors decide to reduce their positions.
• The company has a high P/E ratio of 18.18, which could indicate that the stock is overvalued relative to its earnings.

Recent News

• Analysts Offer Insights on Consumer Cyclical Companies: Marriott International (MAR), Lowe’s (LOW) and Restaurant Brands International (QSR) (theglobeandmail.com)
• Restaurant Brands International gets lift from Burger King turnaround (proactiveinvestors.com)