Restaurant Brands International (QSR.TO)

A solid company. An expensive stock. Have a lot of debt, but it is well-managed. They’ve cut out a lot of costs and have a lot of free cash flow. A good, long term investment, but Buy it on weakness.

The company has done good things. Valuation is fairly rich, but they are good at cutting costs and integrating. Thinks you will see a lot of synergies, certainly in Canada. If there is a negative economic period of growth, they go down the least, because it is a cheap way to eat.

Owns Burger King and Tim Hortons. A pretty simple business, but what they are really doing is skimming off the top and collecting revenues. 99.7% of their network is franchised. A very cash heavy business and paid down a lot of debt from the Tim Horton acquisition. Valuation is quite robust.

Has a very strong, top line momentum. Strong performance in all regions. Just increased their dividend for the 6^th quarter in a row. He models they can grow earnings per share 18% each and every year over the next couple of year through opening new stores and enhanced products and higher margins. Have been lowering their debt steadily since the merger. Trading below its three-year average, and trading in line with its peers, but has a better growth rate. Dividend yield of 1.41%.

This owns Tim Hortons and Burger King. They are very astute and very cost-conscious. One of the tough parts about this, is that they have to make more acquisitions. It is a cost story and a slow revenue growth story. You’ll have to see a bigger acquisition from them such as Yum Brands.

Primarily a growth company. They want to aggressively grow Tim Hortons in the US. Trading at a pretty high multiple. There are other places in that space she would rather own. Trading at about 30X PE with a 1.4% dividend yield.

(A Top Pick Sept 11/15. Up 11.72%.) A core holding. He really likes this business. It is very hard to find a business that is growing its top line and also cutting costs at the same time. Tim Hortons is growing in the US and internationally with same-store sales at about 5%. Burger King is growing in the US. Yield is a little low, so he quite often sells Covered Calls which generates a little extra income.

A terrific business and a terrific brand, but not cheap. His numbers show it trading at north of 30X earnings. Too expensive for what he would look at.

A very well-run company. It is hard to argue with what they have accomplished. They know how to focus on franchise economics so that the store owner makes more money, opens more units, more sales, etc. It is a virtual circle. He likes what they are doing.

Owns Tim Horton’s and Burger King and just makes money off all their franchises. A very juicy business from a cash flow basis. The balance sheet is elevated, but they’ll de-lever again. He has a hard time paying 22X earnings for a business, and would rather wait until they de-lever a little or when the market is trading back down.

This was a merger through the purchase of Tim Hortons by Burger King. An interesting story, has looked at it over the last little while. Management is very smart and have the ability to grow the Burger King franchise globally. Thinks there is good upside. Have cut costs a lot. Not cheap at about 28X forward earnings, but you have to believe that they are going to be able to execute very well, as they have done in the past.

(A Top Pick Feb 2/15. Up 0.99%.) This owns Tim Hortons and Burger King. He likes the young team that is running this company. Tim Hortons is actually making headway now in certain parts of middle America.

Lots of exposure to the US consumer and in the rest of the developed world. Oil prices going down frees up money for discretionary spending. Management is laser beam focused on costs. It is off recently. You have a good brand in Tims and an okay brand in Burger King. It is an attractive stock.

This is the umbrella for Tim Hortons and Burger King. Thinks they have done a lot of cost cutting in Canada. This is too highly priced for her as she is more of a value oriented investor.

Last week they closed a couple of outlets in Maine (21 locations globally). The stock is not cheap. He prefers other, cheaper alternatives.