Are you going through the list of top-performing stocks on the TSX? Well, you can stop searching, as we have got you covered. Restaurant Brands International (TSX:QSR) is one of the best Canadian stocks in the entire TSX, and it’s one I continue to pound the table on. That’s just as true today as it was years ago, when I first started researching and investing in the stock.
Here’s more on why I think nothing has changed with this company and why investors may want to consider this defensive dividend-paying stock over other options in the Canadian market.
What to know about Restaurant Brands International
Restaurant Brands International is amongst the largest QSR (quick-service restaurant) companies in the world. Currently, the company operates more than 30,000 restaurants across 100 countries worldwide. Via world-class banners, including Burger King, Firehouse Subs, Tim Hortons, and Popeyes, Restaurant Brands has built an impressive moat around its cash flow-producing powerhouse worth considering.
Moreover, the company is dedicated to the growth of its brands. The company continues to utilize its respective core values and maintains healthy relationships with its franchisees and employees. Most of its revenue is generated from retail sales at company-owned restaurants. The rest comes from royalty fees and lease income from franchise stores.
The company was formed in 2014 after the acquisition of Tim Hortons International. By the end of 2022, the QSR chain owned 19,000 units of Burger King, 5,600 units of Tim Hortons, 4,100 units of Popeyes Louisiana Kitchen, and 1,250 units of Firehouse Subs.
Excellent Q3 financial results
Recently, Restaurant Brands International announced its third-quarter results, reporting an impressive 10.9% growth in its system-wide sales along with a 7% growth in comparable sales globally. Its total number of restaurants increased by 4.2% compared to the previous year, when it showed 9.3% growth in its adjusted earnings before interest, taxes, depreciation, and amortization.
Furthermore, the company’s total revenue grew 42.7% year over year. Also, the company’s loyalty club members have grown at a 91.5% rate year on year.
Its other operating costs represented a decrease of 5.8%, primarily driven by the cost-optimization actions implemented by the company. Moreover, there were other measures, such as the deployment of advanced technology to enhance operational efficiency, such as the deployment of automated stock-taking systems.
In the previous year, Restaurant Brand investors witnessed a 25% growth in earnings per share. The company’s stock price saw an appreciation of 21%, indicating a positive sentiment among investors.
Bottom line
If you are looking forward to investing in one of the best Canadian stocks in the entire TSX, Restaurant Brands International should be in your portfolio.
Of course, recessionary forces could materialize in the coming year or two. However, Restaurant Brands’s business model is one that’s extremely recession resilient, which is why this name continues to be the largest holding in my portfolio.
