15 More Shares – QSR

qsr

15 More Shares – QSR

3 Great Brands – Burger King, Popeye’s chicken and Tim Horton’s. All of them stayed open during the pandemic. Each of them got some of our money in the last couple months.. While restaurants will certainly take a hit during this whole ordeal, Drive-thru’s remained busy.

In my opinion Restaurant Brands International aka qsr is the best restaurant stock on the tsx.

I love each of these names.

Tim Horton’s is a staple here in Canada with lineup’s extending onto the streets at peak times. Personally I don’t see the point of going each day and waiting in the lineup just for a coffee while I drive. I way rather make a coffee at home and taker to go, but when we are going camping or another long drive I enjoy a tim’s coffee and couple dozen Timbits….  relax it’s for the kids too! (but I’ve been know to tackle a baker’s dozen no problem)

  • 4,800 system wide restaurants located in Canada, the United States and around the world

Burger King – My favorite fast food burger joint. Their chicken sandwiches and burg’s are top notch.. Some people don’t really like burger king. We live in a weird world these days, whopper wednesday’s! Taste’s good and light on the wallet, what’s not to like?

  • 17,800 locations in more than 100 countries and U.S. territories

Popeye’s Chicken – I knew this brand had potential, but they have really grown on me. I love their gravy and the wife love’s their biscuit’s. I don’t love when they count your chicken tender’s wrong and give you 11 instead of 14 though….. arg! Should of counted them at the store. You would think people can count to 15, but I guess not. Bring that chicken sandwich to Canada – I wanna try it!

  • over 3,100 restaurants in the U.S. and around the world




You like dgi Eh?

Seriously though mmmmmmm! Make’s the mouth water just thinking about them… Know what else makes the mouth water? Dividend raise’s… Qsr has treated us very well in this department.

They haven’t been around long but their 3 year dividend growth rate is a whopping 47.75%. Yup you read that right. Clearly this ain’t sustainable and will go down drastically but based on the restaurant numbers above there is a tonne of growth possibility’s for Tim’s and Popeye’s Chicken.

The guys at 3g know the franchise business well and are implementing what they know into all the brands and expanding into new market’s.

The Elephant In The Room.

This has left a bad taste in the Tim Horton’s brand and some say it’s not what it used to be. Same store sale’s have diminished recently but they are really focusing on reinvigorating the brand here in Canada now. I believe they will pull it off. They made some great changes with the roll up the rim campaign but the whole covid thing really threw a wrench in those original plans. People want to see more reusable cups these days, but they couldn’t accept them due to germs.

They have really developed their online presence and even offered free delivery with uber eats for awhile there.

Starbucks recently disclosed that they could be closing up to 200 stores in Canada over the next 2 years. That’s 15% of their Canadian store’s. I’m sure qsr is licking their chops about regaining that market share.

I do wonder if the working at home trend will hurt tim’s sales even more moving forward, but based on what I see driving by them it’s not…

The Buy

I added to our existing position 15 more shares. Not enough to drip it yet, but I plan on continuing to grow this position. We purchased them for 74 bucks and change a share on Friday, just before their ex dividend date.

At the time the yield was about 3.8% and this purchase adds 31.20 usd to our forward dividend income. Not huge but once you convert that to Canadian, oh boy!

Is it a steal at this price? Not exactly, March would of been better. But I’m a huge fan of holding companies that I love and feel this is a good starting yield to boot.

Speaking of people buying qsr did you see how much more shares Bill Ackman and pershing square management added of qsr?

According to a SEC filing, Ackman and Pershing Square now own a combined 29 million shares, or 9.6% stake in Restaurant Brands, up from about 6.6% previously. (Article here)

A massive Purchase, he must be a fan as well. Is he a whopper man or a big king kinda guy? who knows, maybe he just loves to wear those crowns they give to kids…..

End

Well 15 more shares and now 61 in total. $126.88 usd a year, not bad. Always loving stocks hitting over that 100 mark. I think the future looks bright for qsr. While everything is opening back up these days, if we do get a 2nd or 3rd wave – fast food is a good place to be. Their debt level is a little higher than I’d like, hopefully they focus on lowering that moving forward.

If you could only eat at one fast food chain what would yours be? Are you still buying anything these days or waiting for that pullback?

Have a great day

Cheers!




14 Responses

  1. DG Capital says:

    Hey Rob!

    I think QSR is a great buy, to me it definitely flies under the radar for most investors as they would focus on other companies like Yum Brands.

    RBI has done a great job adding businesses to their portfolio, especially with their recent acquisition of Popeyes. I see a lot of upside with RBI.

    -DG Capital

    • Rob says:

      hey Dg

      I feel the same, add a pizza name to the mix and you got all the fast food areas covered!

      no rush though but longterm I think they will

      cheers man!

  2. garrett519 says:

    Good Morning!
    Curious, do you hold QSR in your TFSA or RRSP?

  3. Bonnie says:

    I prefer A & W for burgers. Their coffee is pretty good too and cheap. $1 for any size right now. I recently purchased 65 shares of Bpy.un @ $14.43 each. Added $119 annual dividends @ 12.68%.

    • Rob says:

      hey Bonnie

      A&w coffee is pretty good. I like their burgers but they aint as cheap or filling. haha!

      Nice buy, short term they will remain volatile but long term I’m sure you will be happy. They own a tonne of prime real estate. I’m curious how much of their shares they are buying back at these levels? or bam at least.

  4. garrett519 says:

    Sounds good! I’m the same, US stocks in my RRSP. My only thought is that the dividend is paid in USD, and i’m pretty certain (i’m with Questrade) that they convert the USD to CAD, that’s why I was asking where you hold it, so nothing to worry about

  5. Good buy. Tim Hortons went down hill well way back when taken over by Wendy’s starting off with the frozen donuts instead of made in store. Obviously, there are other issues on their plate with Tim Hortons. Hopefully, they will put in the work to turn things around..

    Owed QSR for a while and have owned Tim Horton’s right before formation of Restaurant Brands International.

    Maybe RBI will purchase Domino’s pizza in the near future!

    Love the long lineups at Tim Horton’s inside and outside the store!

    • Rob says:

      haha dominos? I dunno think they missed the chance to buy papa johns when they had all that drama going on.

      who’s knows. Focus on fixing the Tim’s brand and reducing debt first would be great.

      cheers pursuit

  6. PCI –

    Love the purchase. Popeyes and Burger King seem very busy here, where I’m located in Ohio. I have always wanted to acquire shares, but they have always been extremely pricey without that long of a dividend growth history. Hopefully they can continue to churn a double digit DGR!

    -Lanny

    • Rob says:

      hey Lanny

      Right now its definately hard to find deals in the market.

      I think they will have a solid dividend streak moving forward, but you always think about kraft heinz when it comes to 3g now…… That didnt seem to good.

      cheers man!

  7. German says:

    Nice buy, Rob! Can’t go wrong with Burger King!! I heard BK is introducing a TikTok dance to easy order. That will be appealing to youngsters. They are the biggest consumer of fast food. Smart move!

Id love to Hear What You Think

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