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Here’s the Must-Own Stock of the Decade for Canadian Millennials!

If Canadian millennials have any intention of retiring on time (or even early), then they ought to be keeping high-growth names at the core of their portfolios.

At this point in time (cue the drum roll), I think Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR) is the must-own growth stock for young investors like millennials.

The fast-food juggernaut is not only attractively valued today, but I believe many of investors are misunderstanding the real long-term growth potential behind the name.

Simply put, Restaurant Brands is taking over the fast-food world one acquisition at a time. And although the management team had its fair share of hiccups with the Tim Hortons’ brand, I believe the public is getting distracted from the multi-decade growth story that’s probably only in its infancy.

For now, the company has its hands full with its global expansion and comps growth initiatives for existing brands in Burger King, Tim Hortons and Popeyes Louisiana Kitchen. If stunted growth or brand saturation ever become a problem (as with McDonald’s Corporation), Restaurant Brands’ management will be able to lift its growth ceiling accordingly by scooping up the likes of another fast-food name provided that the timing, fit and valuation are right. The company was designed to be a consolidation of premier players in the fast-food space, and over the next few decades, I think it’s more than likely that the company will capture a considerable portion of the world’s top fast-food chains.

The stock currently trades at a 17.9 forward P/E, a 7.7 P/B, a 6.3 P/S and a 31.0 P/CF multiple, most of which are on the pricey side versus that of the industry average. However, when you consider the exceptional stewardship you’re getting and the ever-increasing growth ceiling that eliminates the potential for growth stagnation down the road, I think shares may be a bargain at today’s levels.

Bottom line

Restaurant Brands is a company with the ability to reinvigorate growth over the extremely long term. Few other businesses can do this, and although there will be bumps in the road, millennials would do best by simply adding the name to their portfolios and just taking Charlie Munger’s advice to “sit on their bum” while the dividends flow.

Stay hungry. Stay Foolish.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette owns shares of RESTAURANT BRANDS INTERNATIONAL INC. The Motley Fool owns shares of RESTAURANT BRANDS INTERNATIONAL INC.

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