Time to Pounce: 1 Phenomenal TSX Stock That Hasn’t Been This Cheap in a While

Restaurant Brands International (TSX:QSR) looks like a market bargain for investors seeking income and upside.

Whenever you’ve given a chance to punch your ticket to a stock at a price that’s well below your estimate of its worth, it can be a perfect time to pounce. Indeed, buying stocks on weakness may not entail catching the bottom or anything close to it. That said, if you’ve been thrown a pretty respectable pitch by the market, swinging only makes sense.

The great Warren Buffett once remarked that the game of investing is one with “no called strikes.” And though there’s no shame in not swinging at the opportunities thrown your way until you’ve got all the checkboxes marked, investors who don’t swing, even at solid pitches, may find themselves glued to the sidelines.

Indeed, investing should be more about buying and holding over many years rather than seeking to pick up shares at bottoms with the intention of dumping them at or around their peaks.

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Investing for the long run trumps trading

If you’re looking to trade rather than invest, you may find that your wealth-creation journey will be a tad choppier. Indeed, trading is a challenging game to master. And for new investors who have less than two years of experience in picking their investments, perhaps sound long-term investing trumps swing (and especially day) trading.

Swing trading can be exciting, but the gains and losses could be in a hurry. And if you’re on a losing streak, you may just throw in the towel on stocks altogether. That’s why I firmly believe investing should not be done for excitement.

If you’re keen on trading, it can make sense to allocate a small portion of your portfolio to such activities so you don’t trade with cash meant to be invested.

In this piece, we’ll look at one simple stock that deserves a spot at your investment portfolio’s core.

Restaurant Brands stock: A 3.3%-yielder worth holding for life

Restaurant Brands International (TSX: QSR) and the rest of the fast-food firms have been rather out of favour of late. Inflation has pinched our wallets, making it far more economical to eat at home. With the industry now in “value mode,” I think it is ready to pick up where it left off before the inflationary surge scared consumers away from restaurants.

Regarding QSR, you’re getting a stacked lineup of fast-food brands. From Tim Hortons to Burger King and even Popeyes Louisiana Kitchen, you get broad quick-serve restaurant exposure minus the overlap. Coffee, burgers, fried chicken, and tasty, toasted subs (from Firehouse Subs), you’re getting a one-stop shop sort of fast-food play with the name.

Though the rumour mill has been spinning about a potential pizza chain acquisition (think Papa John’s Pizza), I wouldn’t jump to any conclusions just yet.

At writing, Restaurant Brands doesn’t need a fifth major chain in the lineup. If, however, the right price comes along, the company has the financial firepower to make a deal happen. Either way, look for the company to continue investing in organic growth as it looks to drive sales and break into new markets.

At 17.3 times trailing price to earnings, QSR stock stands out as a steal. It’s time to pounce on this name.

Fool contributor Joey Frenette has positions in Restaurant Brands International. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

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