The 2 Canadian Stocks I’d Load Into My Portfolio Without Hesitation

CCL Industries continues to pair earnings growth with strong cash generation, while Restaurant Brands is benefiting from improving momentum at Burger King and its international operations.

Key Points
  • CCL Industries posted 9.1% YoY second-quarter sales growth and increased adjusted earnings per share by 10.7%.
  • Restaurant Brands grew second-quarter adjusted diluted earnings per share by 12.9% to US$1.07 as Burger King and international markets delivered strong sales momentum.
  • Both Canadian stocks continue returning cash to shareholders while investing in initiatives that could support long-term growth.

When I’m looking for a stock to buy, I want its growth story to be simple. I want a business that is growing, making money, and creating ways to expand over time. I also want to see enough financial strength that one weak quarter wouldn’t suddenly change everything.

Two Canadian stocks are currently checking a lot of those boxes for me. That’s why I’m considering buying both.

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Source: Getty Images

CCL Industries

The first Canadian stock I’m looking at buying right now is CCL Industries (TSX: CCL.B), especially as it continues to deliver strong growth across much of its business.

If you don’t already know CCL, it mainly provides specialty label, security, and packaging solutions through its CCL, Avery, Checkpoint, and Innovia segments. CCL stock currently trades around $94 per share, giving the company a market cap of about $16 billion. It also offers a 1.5% annualized dividend yield.

Its shares have gained 23% over the last year, mainly due to the ongoing strength in its financials. In the second quarter, CCL’s sales jumped 9.1% year-over-year (YoY) to about $2.1 billion. Organic growth contributed 5%, acquisitions added 1.8%, and positive currency translation contributed 2.3%.

On the profitability side, the company’s operating income surged 8.8% YoY, while its adjusted earnings climbed 10.7% to $1.35 per share.

Another reason I like CCL is that growth is coming from several parts of its business. The company’s core CCL segment delivered higher sales and operating income, while the specialty film segment Innovia posted a 26.5% sales increase and a 46.8% jump in operating income.

That said, the company still has plenty of financial flexibility to fund expansion: It ended June with $975.6 million in cash. Meanwhile, its free cash flow from operations hit $226.5 million during the first six months of 2026.

With earnings growing, acquisitions adding to the business, and cash generation remaining strong, CCL is a Canadian stock I’d be happy to buy now and own for the long run.

Restaurant Brands International stock

Restaurant Brands International (TSX: QSR) is another Canadian stock I’d be comfortable buying without much hesitation right now. The company famously owns not only Tim Hortons but also Burger King, Popeyes, and Firehouse Subs.

After climbing 8% in the last year, QSR stock currently trades around $101 per share with a market cap of $46.3 billion. At this market price, it also offers a 3.7% dividend yield.

Restaurant Brands’ second-quarter revenue rose 4.5% YoY, while its consolidated comparable sales increased 3.8%. Its adjusted operating income also climbed 6.9% to US$715 million, while adjusted earnings grew even faster, rising 12.9% YoY to US$1.07 per share.

Burger King provided one of the biggest bright spots as the segment’s comparable sales advanced by 8.6%, including 8.5% growth in the United States. Meanwhile, its international comparable sales rose 5.5%. Similarly, Restaurant Brands’s international segment also delivered 10.7% system-wide sales growth and a 13.2% increase in adjusted operating income.

Meanwhile, the company continues to invest in Burger King through its multi-year “Reclaim the Flame” turnaround strategy while expanding its restaurant network internationally.

On top of that, Restaurant Brands returned US$435 million to shareholders through dividends and share repurchases during the second quarter. With earnings growing and key parts of its business gaining momentum, QSR is another Canadian stock I’m considering loading into my portfolio today.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends CCL Industries and Restaurant Brands International. The Motley Fool has a disclosure policy.

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