Restaurant Brands International: Buy, Sell, or Hold in 2025?

RBI stock has long been a strong success story, but we’ll have to see what 2025 holds.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 28, 2025 5:00 pm EDT

| More on: QSR

Restaurant Brands International (TSX:QSR) isn’t just one of the world’s largest fast-food players. It’s also a very Canadian success story. Known for owning Tim Hortons, the chain behind many morning routines, it also runs Burger King, Popeyes, and Firehouse Subs. So when this stock moves, it tends to get noticed. After all, it’s not just about burgers and coffee. It’s about one of the biggest names on the TSX. With 2025 well underway, investors are asking: is this the year to buy, sell, or hold?

Confused person shrugging — Source: Getty Images

Checking the numbers

As of writing, RBI stock trades at around $66.78. That’s a decent recovery from its dip last year, but still below its 52-week high of $80.02. The company’s market cap sits around $30.4 billion, making it one of the top consumer stocks on the TSX. It’s big, it’s stable, and it’s part of a daily ritual for many Canadians. But stability doesn’t always mean excitement, and investors are split on whether it’s time to load up or lighten the load.

To figure that out, we’ve got to look at what the restaurant chain has done lately. Its most recent earnings report, released in February, gave investors something to chew on. For the fourth quarter of 2024, the company posted system-wide sales growth of 5.6%. For the full year, growth came in at 5.4%. That’s not explosive, but it’s steady. Same-store sales were up 2.5% globally in Q4. Tim Hortons in Canada was also up 2.5%, while the international side of the business grew 4.7%. Not bad, considering how tough the restaurant space has been lately.

The company also saw income from operations rise by nearly 18% year over year, and adjusted operating income rose 9%. It ended the year with a solid cash position with about $1.3 billion in the bank. That’s the kind of cushion that gives a company room to experiment, expand, or return value to shareholders. And RBI stock did the latter in a big way, handing back around $1 billion to investors through dividends and share buybacks in 2024.

What to watch

But not everything was rosy. The company missed expectations for earnings per share, reporting US$0.81 for the quarter when analysts had hoped for US$1.10. That’s a decent-sized miss and one that made some analysts pause. Even with strong sales growth, it’s the bottom line that drives stock prices long term.

The company has also leaned heavily into digital growth. With apps, loyalty programs, and delivery partnerships, it’s staying current with consumer trends. Tim Hortons, in particular, saw strong growth in cold drinks, with warmer-than-average winter weather contributing to more iced coffee sales than usual. Cold beverage sales grew over 6% in Q4, a surprising boost that shows RBI knows how to make the most of shifting trends.

So, where does that leave investors now? Analysts are generally positive. Most have a “buy” rating on the stock, and one 12-month forecast pegs the target price at $79.93, which would be about a 19% gain from current prices. Others are more cautious, calling for a potential average price of $63.25, which would represent a modest loss. The truth probably lies somewhere in the middle. RBI stock is unlikely to double anytime soon, but it offers a steady dividend, global brand power, and long-term growth potential.

Bottom line

If you’re looking for explosive growth, RBI stock probably isn’t your go-to. But if you want a dependable stock with decent upside and a generous dividend, it’s worth a look. It’s the kind of stock that rewards patience. With a 3.1% dividend yield and a growing presence in international markets, it still has a lot of room to expand. And with so many people grabbing a coffee or chicken sandwich every day, that revenue base isn’t going anywhere.

For 2025, holding RBI stock may be the safest option for those already invested. For new investors, a small position on a dip could pay off long term. The company has its challenges, but it also has decades of brand loyalty and deep pockets to weather short-term bumps. Whether you’re a double-double kind of person or more of a Whopper fan, RBI stock has a little something for every investor who’s in it for the long haul.