Got $20,000? Turn it Into $200,000 in a TFSA as the Canadian Dollar Rises

This stock is one of the best options for those seeking growth as the Canadian dollar rises, and could even be a multi-bagger!

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The loonie is rising, and that’s not just good news for your next trip to Florida. A stronger Canadian dollar can actually give your investments a nice little tailwind, if you know where to look. While many investors flock to energy or gold stocks during times of volatility, this may be the moment to look in a different direction. Specifically, at a burger joint, a coffee shop, or a fried chicken counter. Restaurant Brands International (TSX:QSR) might not be flashy, but it could be the smartest way to turn $20,000 into $200,000 inside your Tax-Free Savings Account (TFSA), especially if the loonie keeps climbing.

The stock

Restaurant Brands International is the parent company of Tim Hortons, Burger King, Popeyes, and Firehouse Subs. It’s one of the largest quick-service restaurant companies in the world, with thousands of locations and millions of customers across more than 100 countries. That kind of global scale matters when currency swings come into play. As the Canadian dollar rises, RBI can benefit from a few key advantages that could supercharge its long-term growth.

Let’s start with the basics. A stronger Canadian dollar means it costs less to import goods and raw materials from abroad. Since RBI’s Canadian operations source a lot of supplies globally, a rising loonie can help keep costs down. That boosts margins and frees up capital to reinvest in growth. It also makes international expansion more affordable for a Canadian-headquartered company, which RBI still is, even if most of its revenue is now global.

Another edge comes from the flip side, how a stronger loonie can stretch foreign profits further when converted back into Canadian dollars. RBI earns a large portion of its revenue in U.S. dollars and other currencies. If you’re holding this stock in your TFSA, a rising loonie could mean more value when those earnings come home. It’s a subtle effect, but over time it can really add up, especially in a tax-free account where gains are sheltered.

Value and income

Now let’s talk numbers. As of early June 2025, shares of RBI are trading at about $98.63. With a $20,000 investment, you could reinvest the 3.2% dividend. That’s where the real magic happens. The power of dividend reinvestment and compounding can’t be overstated. Let’s say you hold RBI for 25 years in your TFSA and earn an average return of 10% per year, including both dividends and share price appreciation. That initial $20,000 could snowball into over $200,000, completely tax-free. No capital gains tax. No dividend tax. Just growth.

And it’s not just about math. RBI has shown it can grow, even through economic uncertainty. In its most recent earnings report, RBI posted revenue of US$2.1 billion in Q1 2025, up from US$1.7 billion the year before. That’s solid year-over-year growth in a tough environment. While income from operations did decline 20% to US$435 million, much of that came from strategic reinvestments and temporary cost pressures, not long-term weakness. The company still reaffirmed its guidance of 8% organic adjusted operating income growth for the year.

Of course, no investment is perfect. RBI faces stiff competition in the fast-food space. Consumer tastes change. Labour and food costs fluctuate. But it has four strong brands, global scale, and the ability to adapt. It’s leaned into mobile ordering, loyalty programs, and store renovations, efforts that are already paying off. And as global incomes rise and fast-food demand increases in emerging markets, RBI is positioned to benefit for years to come.

Bottom line

So, if you’ve got $20,000 sitting in your TFSA and are wondering where to put it next, Restaurant Brands International deserves a serious look. The stock offers a combination of dividend income, global growth, and potential currency upside. And it’s wrapped up in the kind of steady, predictable business that Canadians trust: coffee, burgers, and fried chicken. Sometimes, the smartest move isn’t the one that makes the most noise. It’s the one that just keeps delivering.

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

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