The Motley Fool

1 Stock to Retire Rich: Restaurant Brands International Inc. (TSX:QSR)

Image source: Getty Images

You may not be familiar with Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR), but I can almost guarantee you’re familiar with its restaurants.

This is the machine behind brands such as Tim Hortons, Burger King and Popeyes, with almost 25,000 of these franchises reaching about 100 countries around the world.

So how can fast food make you rich? This company has a strong history of solid growth, and a strong plan to allow this to continue over the long-term. In fact, in just three years your shares could be worth $171 each if you bought today, and even $100 12 months from now.


Restaurant Brands has a lot to compete with. While a double double and a whopper might sound delicious, so does a ventie latte and a Big Mac. McDonalds and Starbucks alone are huge powerhouses of competition that this company has to contend with. But it’s up for the challenge.

It’s already the third-largest global quick-service restaurant chain, with the possibility for more global growth, more brands and more cost-reductions in its future.

Restaurant Brands hopes to grow by putting a focus on brand awareness, guest experience, increased use of technology, international expansion and channel diversification. Should the company acquire even more brands, this same structure would be placed on them, streamlining the customer-first approach and hopefully creating meaningful growth that investors can see in their portfolios.


Investors have seen that growth for a while now. Most recently, the company delivered strong results in its 2018 earnings report, with sales growing 7.4%, earnings per share rising 25% and EBITDA increasing 4.1%.

As I mentioned, any growth organically or through acquisitions could be great for the company, but could also be a bit problematic in the short term. The company already has quite a bit debt of around $16 billion through credit and long-term notes. Currently, restaurant is using its 6% cash flow yield to pay off this debt moving forward.

Long-term outlook

Again, this stock is a buy and hold investment, with the potential for some huge growth during that time. In the meantime, the stock has a history of increasing its dividend, most recently doing so by 11% as it continues to report great results in a competitive space. Currently, that dividend yield sits at 3.07%.

With earnings around the corner on April 23, investors should decide whether to jump on this juggernaut soon. If you’re still wondering whether you should, let’s get into that “rich” potential.

Let’s say you have $20,000 to invest in this stock. The stock currently trades at $89.08 at the time of writing. As I mentioned, it could be at $100 per share by 12 months.

That means if you buy 225 shares with that $20,000, they could be worth $22,500 by this time next year.

Now let’s look at its historic three-year performance. As I mentioned, those stocks could increase to $171 per share by this time three years from now.

That means if you take those same 225 shares, you could have about $40,000 in just three years!

But for this stock, I would buy it and hold onto it for the long term. If you double your money in just a few years, there’s no telling what it could do by the time you retire.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns shares of RESTAURANT BRANDS INTERNATIONAL INC and has the following options: short October 2019 $82 calls on Restaurant Brands International.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.