If you’re looking for a Canadian‑listed, globally diversified consumer stock that’s just pulled back about 10% from its recent peak, I’d argue that Restaurant Brands (TSX: QSR) is one of the best names to buy in bulk right now.
Here’s why I think this dividend stock could be one of the best plays in the stock market right now.
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Why is QSR stock on sale right now?
Restaurant Brands trades on both the TSX and NYSE and has dipped roughly 10% off its recent high, putting the stock back into the mid‑to‑high‑$60s (USD‑equivalent) range after a run‑up that pushed it toward the mid‑$70s.
That pullback comes even as the company continues to grow system‑wide sales north of $45 billion. With more than 32,000 restaurants in over 120 countries, this is a company with massive scale (and is expanding). In other words, the business is not slowing – it’s the market’s expectations that have cooled a bit. Other concerns tied to the rise of GLP-1 drugs and concerns around the consumer continue to hamper this name.
Strong brands and steady cash flow
That said, I’m more focused on the company’s world-class portfolio of banners and underlying business model as a reason to own this name. This portfolio includes the likes of Tim Horton’s, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs. Enough said really – these banners provide a powerful mix of breakfast, value‑oriented, and chicken‑centric banners.
Tim Horton’s remains a cash‑cow in Canada, while Burger King keeps expanding internationally. And Popeyes provides a high‑growth niche within the chicken segment. The company runs a capital‑light franchise model, which means it earns royalties, rent, and supply‑chain dollars rather than funding most build‑outs itself, so free cash flow tends to be robust and predictable.
Don’t ignore the dividend and value story
Of course, Restaurant Brands’ still-robust dividend yield of 3.9% is one of the key reasons why many investors flock to this name. That’s a fixed income-like yield, with a company that has plenty of capital appreciation upside potential.
That said, with a valuation in the low-20s on a price-earnings basis, this is a stock that hasn’t been this cheap in some time. Thus, I think there’s a real value thesis to buying and holding this stock for the long term on this basis alone.
Personally, I’m expecting double-digit total returns for the remainder of the next decade and into the next decade. That’s my long-term belief in this name, and why I continue to pound the table on QSR as a top buying opportunity right now (particularly on dips).
