Why I’m Buying Restaurant Brands International Stock Today

Canadian restaurants faced a terrible challenge during the COVID-19 pandemic. The health crisis would claim many small businesses as governments moved forward with lockdowns and damaging restrictions that slashed profitability for many restaurants. However, fast food restaurants were in unique position that allowed them to operate drive thrus and take advantage of the rise of food delivery apps.

Restaurant Brands International (TSX:QSR)(NYSE:QSR) is based in Toronto and operates as a quick-service restaurant company in Canada and around the world. Shares of RBI have increased 23% year-over-year as of close on January 13. The stock has moved up marginally in the first weeks of the New Year.

This company is set to release its fourth quarter and full-year fiscal 2022 results on February 14, 2023. Investors got to see its third quarter fiscal 2022 earnings on November 3. RBI delivered consolidated system-wide sales growth of 14%. This included system-wide sales growth of 12% at Popeyes, 13% at Tim Hortons, and 14% at Burger King. Meanwhile, total adjusted EBITDA rose to $642 million compared to $607 million in the third quarter of fiscal 2021.

In the first nine months of fiscal 2022, RBI posted total revenues of $4.81 billion – up from $4.19 billion in the prior year. Meanwhile, net income rose to $1.14 billion over $991 million in the year-to-date period in FY2021.

RBI is trading in solid value territory at the time of this writing. It is on track for strong earnings growth going forward. Better yet, it offers a quarterly dividend of $0.54 per share. That represents a 3.3% yield.