Looking for the most lucrative stock for 2024? Restaurant Brands could be what you are looking for.
Restaurant Brands International (TSX: QSR) is the parent company of quick-service restaurant chains scattered around Canada, the US, and several other countries globally. Presently, Restaurant Brands has 28,000 restaurants in 100 countries.
Due to its strong global presence, QSR is highly popular in the Canadian stock market. Keep reading to know why this stock must be in your portfolio.
Top dividend stock for the long run
This leading Canadian fast food conglomerate owns some of the prominent brands such as Burger King, Tim Hortons, Firehouse Subs, and Popeyes. Most of these brands are popular internationally as well as in North America and have excellent growth prospects.
According to this company’s Q2 FY2023 results, Restaurant Brands International has recorded consolidated growth in comparable sales of 9.6%. Furthermore, the statements show its EBITDA grew from US$618 million in 2022 to US$665 million in 2023.
The forward dividend yield for QSR stock is 2.9% while the company’s dividend payout ratio sits at around 80%. This gives investors a rough idea that investing in QSR stock can bring in consistent income in the form of regular dividends. On this note, investors should note that Restaurant Brands has maintained an excellent track record in paying dividends consistently for five continuous years.
Owing to its regular dividend payments, Restaurant Brands International’s stock is popular among long-term investors. The current dividend yield is more than 3%. During the past few months, analysts witnessed a slight fall in demand for QSR stock as its price went higher. Despite this, financial experts suggest investors seeking significant returns in 2024 and beyond not hesitate to purchase this company’s stock.
The primary reason for Restaurant Brands’ consistent demand is that for five years, the restaurant chain owner reflected continuous top and bottom-line growth. Thus, interested investors in this sector must not have second thoughts while deciding to invest in this stock for regular returns.
Continued dividend growth expected
Since Restaurant Brands International launched its IPO, it has witnessed payout growth of more than 25%. According to analysts, this growth leaves enough room for higher dividends in 2024.
This company’s sales are expected to grow by 11%, and earnings growth could similarly increase this year. Also, Restaurant Brands International offers a share-buyback option to interested investors. QSR received approval to buy back US$1 billion in the past two years.
Reports excellent Q3 results
Restaurant Brands International announced its Q3 results a few months back in 2023. This earnings report showed solid revenue growth, and while overall growth came in lower than expected, the fact that the company increased its footprint more than 4% year over year and saw positive same-store sales growth suggests its growth trajectory remains intact.
Investors also witnessed a 21% appreciation in QSR stock. This is a sign of an increase in relative interest in this fast food name, compared to its peers. Additionally, Restaurant Brand’s operational costs saw a slight decrease of 5.8% owing to cost optimization action that this company implemented.
To conclude, if you are an investor looking forward to investing your surplus funds in passive income stocks, Restaurant Brands International is a must for your portfolio. Given its record, QSR is among the best Canadian stocks bringing in regular returns and growth to long-term investors.