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

You may not know to look at it, but Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR) has the potential to make you retirement rich.

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.

Growth

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.

Finances

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.

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.

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