economy
The Tim Hortons parent just made Josh Brown's best stocks list and is breaking out
Josh Brown and Sean Russo take a look at QSR.
TL;DR
- Restaurant Brands International (QSR) is performing well technically and fundamentally.
- The company owns Popeyes Chicken, Burger King, Tim Hortons Donuts, and Firehouse Subs.
- A new strategy, led by Executive Chairman Patrick Doyle, aims to improve store economics and execution.
- Burger King's 'Reclaim the Flame' initiative is showing early positive signs with improved same-store sales and franchisee profitability.
- Patrick Doyle has a successful track record, notably with Domino's Pizza.
- Pershing Square is a significant long-term holder of QSR.
- QSR operates 33,000 restaurants globally, with over 95% franchised.
- Burger King has outperformed competitors in recent quarters, and Firehouse Subs is growing rapidly.
- Popeyes is currently underperforming and undergoing leadership transition.
- QSR expects strong revenue, EBIT, and EPS growth for the upcoming May quarter.
- International expansion is a key growth driver, with plans to open 1,800 net new restaurants annually by 2028, primarily outside North America.
- Increased international locations lead to higher royalty rates and directly impact EPS.
- For traders, a weekly close below $68 or significant RSI divergence would be signals to exit.