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TSE:QSR

Restaurant Brands International (QSR.TO)

105.46
+1.59 (1.53%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
313 watching
0
PAST TOP PICK
(A Top Pick Jun 18/19, Down 16%) Buy it for a long term growth based on the brands. Popeye's was flat in their Q1 earnings, Burger King was down 35% and Tim Hortons down 50%. Their dividend will continue and the balance sheet looks fine. You could still add on weakness.
DON'T BUY

Their expansion into China. He's skeptical. The Horton's expansion into America didn't work, so China? In China, he would own Starbucks or especially McDonald's which has more growth discipline. In China, a company needs a landlord partner, and location means so much.

BUY ON WEAKNESS
Future of restaurants? This company was always very expensive to him. His model price is is $48.93. Management has had some hits and misses. He would look to buy at $40.
DON'T BUY
They were saved by Poppy's sandwiches. The company is interesting as he thought they were at risk of cutting the dividend, but didn't. Tim Horton's is the problem because the sales have weakened. This is hard to turn around. He would own dominos as a fast food pick. It controls its own delivery and competitors may close up shop. The valuation is attractive and no risk, like Tim Horton's.
BUY
They reported earnings today and they were a little disappointing -- $0.48 EPS versus $0.49 expectations. They have been forced to close their sit down dinning areas. They are starting to re-open locations and are mitigating the loss with increases in drive-thru and delivery sales. What really stands out is that Popeye's same store sales were up 32% and are running flat to year ago levels. He likes their menu innovations and thinks they could make some strategic acquisitions. This is a good entry point.
COMMENT
QSR has a lot of international exposure and he sees some opening beginning to occur in China. NTR is not impacted as we all have a need for food -- you can buy here. LSPD is asset light company, unfortunately it is economically sensitive -- requiring restaurants to be open to generate revenues.
PAST TOP PICK

(A Top Pick Apr 11/19, Down 26%) This one has not worked out. Not much really has. It is a difficult period for this company. He bought it because they owned strong and growing brands and he continues to think this. It is a vacuum caused by social distancing that has brought them down. Burger King's menu is working out well. This company will continue to struggle over the next quarter or two.

SHORT
He has a small short because of poor valuation and price momentum. Trades at 21x EBIT to EBITDA, so pricey. Managers used too much debt and have damaged the brand with fighting with franchisees as managers tried to cut costs. Managers say they have mended some bridges. Overall, this is too pricey for a consumer stock.
PAST TOP PICK
(A Top Pick Apr 11/19, Down 16%) Disappointing, but still owns it. It's a master franchisor. Two of its three chains is doing very well, namely Popeye's, but Tim Horton's is struggling. It changed leadership in January; their menu got too complex. He expects new managers to revive Horton's. Stick with it.
WAIT
He would be okay for the longer term as a hold, but it is a little expensive here. Tim Horton's is the largest segment and it is slowing. It will be a wait over the next couple of quarters he thinks.
BUY
We have seen a bit of a pullback but we are in the seasonal period for them. We are at a support level from a couple of years ago. They had a couple of operational issues on the Tim's side. He thinks it looks good from a technical perspective. Burger King is a well run company. (Analysts’ price target is $101.00)
COMMENT

Owns YUM! Brands instead. QSR has negative growth at Tim's. You want all your brands to have healthy growth. Pretty well run. Cost-cutting when they bought Tim's may have backfired. YUM has international exposure and strong performance of Taco Bell in the domestic market.

BUY
He owns it, but it's his worst performer. But he likes the dividend, can pick away at this and add to his position. They plan to expand from 26,000 to 40,000 stores in a decade. They have 3% comparable sales growth and 5% net restaurant growth. Set yourself up to buy for the next move up.
STRONG BUY
He is buying hand over fist at this price and in front of the earnings release. Tims is most struggling as they simplify the items on their menu. Berger King is going like gang busters. Poppy's is crushing it with their reviews on social media.
COMMENT
There's support at $80. As long it remains above there, it should trend higher. It had a good start to 2019, but then pulled back 50%, which is normal. But watch out if it continues to decline. He himself needs to decide on his holding soon.
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