1 Stock on Sale: Why Now’s the Perfect Time to Invest

Here’s why now looks like a perfect time to invest in fast-food giant Restaurant Brands (TSX:QSR) and where this stock could be headed from here.

| More on:
sale discount best price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in stocks can be challenging, but certain opportunities shine brighter than others. One such opportunity currently exists with Restaurant Brands International (TSX:QSR), a global fast-food powerhouse that owns iconic brands like Tim Hortons, Burger King, Popeyes, and Firehouse Subs.

Created with Highcharts 11.4.3Restaurant Brands International PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

While market sentiment fluctuates, savvy investors are recognizing that this is a very undervalued company with strong growth potential and a dividend worth considering.

Here’s why I think now may be a great time to pick up shares of QSR stock, which are off around 8% over the past month.

Increasingly attractive valuation

When it comes to large-cap TSX stocks like Restaurant Brands, investors have historically done very well buying these companies when they’re cheap and holding them over the long term. I think right now, the stock is trading at a level that justifies some significant attention.

With QSR stock now trading at a price-to-earnings ratio of around 15 times, that’s a multiple that’s historically dirt-cheap for this name. Outside of various shocks (the pandemic), investors haven’t been able to pick up shares at such a level. Thus, the short-term concerns that have dragged down Restaurant Brands of late (quarterly misses and concerns around GLP-1 drugs) could overshadow the very robust long-term trends the company has seen in terms of its fundamentals.

Growth potential ahead

Aside from a solid dividend yield above 3% and a core business model which is about as defensive as they come (if we do see a recession, consumers looking to eat away from home are likely to become increasingly price-conscious, driving them to one of Restaurant Brands’s locations), there are various growth catalysts I think are worth looking at when it comes to this fast-food giant.

First, Restaurant Brands has built an impressive international business. With more than 30,000 locations spanning 100 countries, this is a truly international giant that’s having strong growth in emerging markets like Asia and Latin America. For example, Burger King has seen substantial growth in countries like India, where the middle class is rapidly expanding. Similarly, Popeyes is capitalizing on its popularity in North America by entering markets such as China.

The global fast-food market is projected to grow at a compound annual growth rate of 4.6% from 2023 to 2030. With its diverse portfolio of brands and proven ability to scale operations, QSR is well-positioned to capture a significant share of this growth.

Bottom line

Investors looking for value (and not only value but high-quality value) really need to look no further than Restaurant Brands for an example of a company trading at a price that really doesn’t make sense right now. This is a long-term holding I think is worth buying on the dip and holding for the long term.

Should you invest $1,000 in CIBC right now?

Before you buy stock in CIBC, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and CIBC wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Investing

A person looks at data on a screen
Dividend Stocks

How I’d Invest $27,000 in Canadian Insurance Stocks to Insure My Wealthy Future

In market corrections, investors can spread their buys over months or quarters to reduce the market volatility risk.

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

Young Investors: How I’d Allocate $10,000 for Long-Term Potential

Young Canadians can achieve financial independence faster by saving and investing early.

Read more »

stock research, analyze data
Dividend Stocks

Where to Look for Value Opportunities in Canadian Stocks This Month

These stocks have great track records of dividend growth during difficult economic times.

Read more »

Asset Management
Investing

Got $100? Where I’d Invest This Starter Amount in Small-Cap Stocks With Long-Term Potential

Jamieson Wellness (TSX:JWEL) stock could be a great starter stock for investors looking to buy the dip.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, April 9

As U.S. tariffs on most of its key trade partners, including China, take effect today, TSX stocks could continue to…

Read more »

A worker overlooks an oil refinery plant.
Dividend Stocks

3 High-Yield Canadian Stocks I’d Consider for a $5,000 Investment

These three dividend stocks are excellent additions to your portfolio, given their healthy cash flows and high yields.

Read more »

chart reflected in eyeglass lenses
Investing

3 No-Brainer Canadian Stocks to Buy Under $50

Given their solid underlying business and healthy growth prospects, these three under-$50 stocks would be excellent buys right now.

Read more »

canadian energy oil
Energy Stocks

How I’d Position $7,000 in This Canadian Energy Stock for 2025 Growth Potential

Tourmaline, Canada's low-cost and largest natural gas producer, is benefiting from strong industry fundamentals.

Read more »