Canadians: The 1 Defensive Stock I’d Buy in Today’s Economy

Restaurant Brands International (TSX:QSR) is a global conglomerate with a large restaurant portfolio.

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The Toronto Stock Exchange has several fundamentally strong stocks that deliver higher returns and generate significant investor wealth. As a Canadian investor, you can seek options to invest in defensive stocks to protect your capital and earn higher returns. One defensive stock to consider over the long term is Restaurant Brands International (TSX:QSR), a global conglomerate with a large restaurant portfolio.

Keep reading to know why investing in this stock right now is a boon for the long term.

What this company does

Restaurant Brands International is a Canadian giant operating fast-food restaurants worldwide. It generates revenues through franchise fees, charges for using its brands and operating a few eateries. The brand is well known for Tim Hortons, Firehouse Subs, Popeyes Louisiana Kitchen, and Burger King. In 2021, Restaurant Brands International generated $35 billion in revenue via operating in 28,000 across 100 countries.

Strong financial outlook

In the fourth quarter of 2023, Restaurant Brands added 3.9% more locations, with Popeyes bringing forward the most growth at 4.3%. In addition, the first quarter of 2024 witnessed a consolidated comparable sales increase of 4.6%. The company’s system-wide sales increased by 8.1% year over year, and income from operations was $544 million. 

At the time of writing, the company has a market capitalization of $42.5 billion, with a beta (five-year monthly) of 0.93, indicating its stocks’ less volatile nature during market changes. Moreover, it has a price-to-earnings ratio of 17.7 times and earnings per share of $5.28. Importantly, for investors looking for a top dividend stock to buy, Restaurant Brands has a dividend yield of 3.3%.

These factors combined suggest that Restaurant Brands makes a great long-term investment for those seeking defensiveness, income, and growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has positions in Restaurant Brands International. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

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