1. Restaurant Brands International Inc. (NYSE: QSR)
Lerner’s Stake Value: $4,657,000
Percentage of Traci Lerner’s 13F Portfolio: 0.49%
Dividend Yield: 3.27%
Number of Hedge Fund Holders: 26
Restaurant Brands International Inc. (NYSE: QSR) owns and licenses rapid service eateries under the brand names Tim Hortons (TH), Burger King (BK), and Popeyes (PLK). It was founded in 1954 and ranks first on the list of 10 best dividend stocks to buy according to Traci Lerner’s Chescapmanager. Restaurant Brands’ shares have gained about 19.13% over the last 12 months.
On June 16, Restaurant Brands International (NYSE: QSR) issued 3.875% senior secured notes due January 15, 2028, whose principal amount is $800 million. The net proceeds will be used to retrieve all issuers’ pending $775 million of 4.250% First Lien Senior Secured Notes due 2024. On April 30, the company declared a quarterly dividend of $0.53 per share, in line with the previous. The company also announced its earnings per share for the first quarter of 2021. The earnings per share was $0.55, beating the market predictions by $0.05.
The hedge fund run by Lerner owns 71,650 shares in Restaurant Brands International (NYSE: QSR) worth $4.66 million, representing 0.49% of their investment portfolio. New York-based investment firm Pershing Square is a leading shareholder in the company with 23.93 million shares worth $1.56 billion.
In its fourth quarter 2020 investor letter, Pershing Square Holdings Ltd, an investment management firm, highlighted a few stocks, and Restaurant Brands was one of them. Here is what the fund said:
“QSR’s franchised business model is a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from three leading brands: Burger King, Tim Hortons and Popeyes. The company nimbly navigated difficult market conditions in 2020 by assisting franchisees, while maintaining its long-term growth potential.
As the COVID-19 pandemic began, management undertook a series of steps to secure and strengthen the business. The company quickly bolstered safety procedures and shifted marketing spend to highlight the off -premise options available to customers, while supporting its franchisees with fee/cap ex deferrals and liquidity programs. Throughout the year, the company accelerated its digital investments by expanding its delivery footprint, modernizing its drive-thru experience, increasing mobile ordering adoption, and improving its loyalty programs.” (Click here to see the full text)
You can also take a peek at 10 Best High Yield Dividend Stocks to Buy in June and 10 Best Dividend Stocks to Buy According to Billionaire Ray Dalio.
