MENU

Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

2 Reasons to Consider Restaurant Brands International Inc.

If 2014 was the year to merge and 2015 was the year to integrate, 2016 is turning out to be the year of growth for Restaurant Brands international Inc. (TSX:QSR)(NYSE:QSR).

Restaurant Brands (RBI) was formed back in 2014 when two iconic brands came together: Burger King and Tim Hortons. RBI represents one of the largest quick-service-restaurant companies in the world. The company has a massive footprint spanning over 19,000 restaurants in over 100 countries.

Here are two reasons to consider adding RBI to your portfolio if you haven’t already.

RBI’s brands continue to do very well irrespective of the economy

One of the most interesting points about both the Burger King and Tim Hortons brands is that they are both largely immune to fluctuations in the economy–more so than, say, a more traditional-style restaurant that has higher price points and higher labour costs.

By comparison, both Tim Hortons and Burger King are set up for quick service with relatively inexpensive offerings.

In terms of performance, in the most recent quarter comparable sales across both brands grew by 2.7% at Tim Hortons and 0.6% at Burger King, while increasing net restaurant growth by 3.8% year over year.

System-wide sales saw growth of 4.8% at Tim Hortons and 5.9% at Burger King. Much of this growth can be attributed to a number of highly successful launches at both Tim Hortons and Burger King. Adjusted EBITDA increased by 16.2% year over year to $479 million. In terms of earnings, adjusted diluted earnings per share increased year over year by 38.3%, coming in at $0.41.

RBI is expanding Tim Hortons globally

Most Canadians don’t even realize that their favourite coffee and baked-goods shop has developed quite an international footprint over the past few years, and that footprint is about to get bigger.

Tim Hortons made a series of announcements over the past few weeks that showcase how the RBI is pushing the Tim Hortons brand into new key markets.

In July Tim Hortons announced a partnership with an investor to establish a master franchise joint venture company in the Philippines. The economy in Southeast Asia is growing rapidly, and the emergence of a quick-service brand like Tim Hortons could prove to be successful.

The Philippines, according to RBI chief executive Daniel Schwartz, has “a population that has an affinity for coffee and baked goods.” If that statement proves to be true, then Tim Hortons could find that market to be wildly successful.

Schwartz hasn’t been coy about his desire to see the Tim Hortons brand become more of a global brand. In terms of modifications to accommodate the needs of local markets, RBI executives hinted at some potentially new products for the Philippines to appeal to the local market.

This week RBI also announced that new Tim Hortons locations are set to pop up in England, Scotland, and Wales. As with the previous announcement, there were no details provided to the exact number of locations that will be opening, only that the company expects to be a market leader.

In my opinion, Restaurant Brands International represents a great opportunity for those investors seeking long-term growth. The company’s aggressive expansion, largely positive results, and growing dividend should keep investors happy.

The exclusive buy "signal" you can't ignore

Over the course of The Motley Fool U.S.'s 23-year history, this rare buy "signal" has generated massive wealth for those that have been smart enough to pay attention to it. It's so rare, that it's happened less than two dozen times... but when it does, it's made investors undoubtedly rich. If you're interested in knowing the stock behind this rare buy "signal"--and you're excited to take advantage of this golden opportunity, then you're going to want to read this. Click here to unlock all the details behind this new recommendation from Stock Advisor Canada.

Fool contributor Demetris Afxentiou has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.