Attention Tax-Free Savings Account (TFSA) investors! It’s time to start putting some of that hard-earned money away toward what could be decades of tax-free growth. While there are plenty of great investment options on the market to consider adding to your TFSA, today I’d like to take a moment to mention Restaurant Brands International (TSX: QSR)(NYSE: QSR)
Give your portfolio some love
One of the things that I love about investing is finding stocks that cater to our everyday needs. In the case of Restaurant Brands, that means picking up a morning coffee at Tim Hortons or something to eat at Burger King or Popeyes.
To many, those daily motions toward Restaurants Brands stores can become a routine recurring source of revenue for the company, much to the joy of shareholders.
In terms of results, in the most recent quarter, Restaurant Brands reported system-wide sales growth of 8.9% across all of its brands, with Popeyes and Burger King more than compensating for a flat growth quarter from Tim Hortons. Both Popeyes and Burger King saw sales growth of 15.6% and 10.7%, respectively.
Restaurant Brands reported sales of US$8,887 million in the quarter, surpassing the US$8,293 million reported in the same period last year. Much of that growth was attributed to an overall 5% net restaurant growth witnessed in the quarter, as well as comparable sales gains at Burger King and Popeyes of 4.8% and 9.7%, respectively.
In total, the company brought in US$1,458 million in revenue, surpassing the US$1,375 million reported in the same quarter last year while earning an impressive US$351 million, or US$0.75 per share.
By comparison, in the same quarter last year, earnings came in at US$250 million, or US$0.53 per share.
Critics often shy away from Restaurant Brands due to the company’s debt load and the ongoing issues at Tim Hortons. Fortunately, Restaurant Brands has continued to chew away at its debt over the past few years, managing to reduce it significantly while not neglecting both the quarterly dividend as well as generating cash.
In the case of Tim Hortons, Restaurant Brands has already made strides in establishing an international expansion plan for the coffee chain, with a 1,000 store expansion in China set to follow successful launches in the U.K, Spain, Mexico, and the Philippines.
Make your TFSA shine with dividends
In terms of a dividend, Restaurant Brands offers an impressive 3.08% yield, which, combined with the growth prospects mentioned above should meet the needs of any long-term income investor.
Also worth noting is that Restaurant Brands has provided annual or better bumps to that dividend over the years and is likely to continue doing so for the foreseeable future.
In my opinion, Restaurant Brands is an excellent long-term addition for both growth and income-seekers alike.
