4 Best Stocks to Buy Now According to Bill Ackman

Page 1 of 4

In this article, we discuss 4 best stocks to buy now according to Bill Ackman. To see more stocks in this selection and read about Bill Ackman’s performance and investment philosophy, click 7 Best Stocks to Buy Now According to Bill Ackman.

4. Restaurant Brands International Inc. (NYSE:QSR)

Pershing Square’s Stake Value: $1,452,512,000

Percentage of Pershing Square’s 13F Portfolio: 13.47%

Number of Hedge Fund Holders: 24

Restaurant Brands International Inc. (NYSE:QSR) was founded in 1954 and is headquartered in Toronto, Canada. It operates as a restaurant franchiser and operator, with brands like Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs under its banner. Bill Ackman’s Pershing Square owns close to 24 million shares of the company, worth $1.45 billion, representing 13.47% of the total 13F securities. 

On February 15, Restaurant Brands International Inc. (NYSE:QSR) declared a $0.54 per share quarterly dividend, a 1.9% increase from its earlier dividend of $0.53. The dividend was paid on April 6, to shareholders of record on March 23. Restaurant Brands International Inc. (NYSE:QSR) delivers a dividend yield of 3.65% as of April 11. 

The company published its Q4 results on February 15, posting earnings per share of $0.74, topping estimates by $0.05. The $1.55 billion revenue increased 13.84% year-over-year, exceeding estimates by roughly $42 million. Deutsche Bank analyst Brian Mullan maintained a Buy rating on Restaurant Brands International Inc. (NYSE:QSR) but lowered the firm’s price target on the stock to $72 from $75 in light of the Q4 results. 

Among the hedge funds tracked by Insider Monkey, 24 funds held long positions in Restaurant Brands International Inc. (NYSE:QSR) at the end of December 2021, compared to 22 funds in the previous quarter. Harris Associates owns one of the largest stakes in Restaurant Brands International Inc. (NYSE:QSR), with 5.6 million shares worth $342.7 million. 

Here is what Pershing Square Capital Management has to say about Restaurant Brands International Inc. (NYSE:QSR) in its Q4 2021 investor letter:

“QSR is a high-quality business with significant long-term growth potential trading at a highly discounted valuation.

Comparable sales have recovered or are well on their way to recovery.

Tim Hortons Canada improved to a mid-single-digit decline during Q3 relative to 2019.

Burger King U.S. under new leadership and poised to make a recovery.

Burger King International and the Popeyes brand continue to grow well with strong same-store sales growth relative to 2019 levels. As underlying sales trends recover, QSR’s share price should more accurately reflect our view of its business fundamentals.

Management continuing to make investments for future growth.

Digital: G&A investment to modernize digital platforms and loyalty programs.

New Units: Return to historical mid-single-digit unit growth in 2021 and beyond.

Brand Acquisitions: Purchased Firehouse Subs for $1bn in December.

Remains cheap relative to intrinsic value and peers.

Trades at less than 18x our estimate of 2022 free cash flow per share.

The company began repurchasing shares in August.

As underlying sales trends recover, QSR’s share price should more accurately reflect our view of its business fundamentals. QSR’s share price increased 3% in 2021 and has decreased 7% year-to-date in 2022.”

Page 1 of 4