One thing that investors have learned from the downfall of the market two years back is the importance of adding dividend or growth stocks to their portfolios. During market turbulence, these are the stocks that help in balancing the regular cash flow and dividend payments.
In my view, one of the top ways for investors to manage their risk in good markets and bad is Restaurant Brands (TSX:QSR). If we’re on the precipice of a recession, QSR stock is one to hold. However, if this is the beginning of a new bull market, as the data suggest, then this is still a stock to own.
Here’s why.
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Recent results show strength across core business lines
When picking a “forever stock” for the portfolio, it’s important to consider the staying power of such companies. One of the ways investors can do this is by assessing a company’s earnings reports and ensuring it’s moving in the right direction.
In short, since the pandemic began (which was an amazing buying opportunity in hindsight), Restaurant Brands has been hitting the ball out of the park. In the company’s most recent second-quarter (Q2) results released last week, the company posted 14% consolidated system-wide sales growth on a year-over-year basis. For a company of this size, that’s very impressive.
Additionally, the company noted that it officially surpassed the 30,000 restaurant mark in terms of global locations and over $40 billion in system-wide sales over the past year. Those are staggering numbers.
For those who believe fast food will remain in style for quite some time, QSR stock looks like one of the best opportunities in the market right now, in my view.
Bottom line
My take on Restaurant Brands is relatively simple. This is a company that should provide meaningful growth whether macroeconomic conditions deteriorate or remain in a stable upward trend.
People need to eat, and the brand loyalty Restaurant Brands has garnered via its core Burger King, Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs banners is noteworthy. Interestingly, the company’s growth rate has accelerated from 2021/2022 to 2022/2023. For those seeking a rock-solid company with excellent growth prospects, this is one to keep on the radar.
