Up by 21.03%: Is Restaurant Brands Stock a Buy Right Now?

Restaurant Brands International stock can be an excellent addition to your portfolio, as it continues a remarkable run this year on the stock market.

As of this writing, the S&P/TSX Composite Index is down by 8.44% year to date. The Canadian benchmark index’s decline this year reflects the broader market’s instability this year. Most stocks across the board are trading at discounts. However, pockets of the TSX have shown that some stocks can outperform the broader market, despite the macroeconomic factors causing an overall downturn.

2022 might have been a difficult year for stock market investing. However, it does not have to be completely doom and gloom, provided you can find the right assets to invest in. Today, I will discuss one TSX stock outperforming the stock market this year by a massive margin this year: Restaurant Brands International (TSX: QSR).

Restaurant Brands International

The $42.49 billion market capitalization company headquartered in Toronto owns and operates several top names in the global restaurant industry under its belt. With the likes of Burger King, Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs under its banner, RBI stock is a powerhouse in the restaurant industry.

Despite the broader decline and uncertainty-riddled market environment in 2022, RBI stock has done well for itself. As of this writing, Restaurant Brands stock trades for $90.43 per share, up by 21.03% year to date. While the stock’s share price performance has been volatile this year, recent weeks have seen a significant uptick.

Over 12% of its climb came in the last two weeks at writing alone. Aside from outperforming the market, RBI stock is also an excellent dividend stock, boasting a 3.25% forward annual dividend yield at current levels.

Bringing in the big guns

Restaurant Brands International recently published a press release announcing the hiring of a certain Patrick Doyle as the company’s new executive chairman.

For those who don’t know the name, Doyle is the person who turned things around for an American pizza chain in a similar role just over a decade ago. Domino’s Pizza had fallen from grace at the time, and its product quality significantly contributed to its declining performance.

Doyle came along in March 2010 to revamp everything about the company, down to its pizza recipe. His introduction to the company’s top ranks saw Domino’s achieve over 2,200% growth in less than a decade. Before Doyle became the chief executive officer, Domino’s had less than 500 company-owned locations. At this point in time, that figure has almost reached 20,000 locations worldwide.

Foolish takeaway

Basing Restaurant Brands International’s growth potential based on the executive chairman’s performance for another major restaurant business is not the only factor to consider when investing in RBI stock. However, his reputation is not something that can be discredited.

Besides the immense experience he brings to the company, he also has a vested interest in the company doing well. He purchased $30 million of shares that he will contractually hold for at least the next five years.

RBI stock is in a much better shape than Domino’s Pizza was when Doyle took over. It means you might not get over 2,000% of growth by investing in RBI stock. However, a similar approach to growing Domino’s Pizza being applied to RBI stock by someone who has already done it can prove fruitful for the company and its investors.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Domino's Pizza and Restaurant Brands International. The Motley Fool has a disclosure policy.

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