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5. Restaurant Brands International Inc. (NYSE:QSR)
Pershing Square’s Stake: $1.6 billion
Forward P/E Ratio: 12.90
Restaurant Brands International Inc. (NYSE:QSR)’s shares are up by 8% over the past year and by 8.9% year-to-date. Several analysts have discussed the firm this year. For instance, Scotiabank raised the share price target to $81 from $71 and kept a Sector Perform rating on the stock on April 28th. It discussed Restaurant Brands International Inc. (NYSE:QSR)’s growth as part of the coverage and pointed out that further upside in the shares was possible only in the case of additional growth. Later, in early May, the restaurant company reported its earnings for the first quarter. The results saw Restaurant Brands International Inc. (NYSE:QSR) post $2.26 billion in revenue and $0.86 in earnings to beat analyst estimates of $2.24 billion and $0.83. True to form, Scotiabank bumped the price target to $83 from $81 and kept its Sector Perform rating.
More recently, media reports have suggested that Restaurant Brands International Inc. (NYSE:QSR) might be selling its well-known pizza chain, Pizza Hut. The sale will be made to private equity firm Long Range Capital, and the report comes after the firm had indicated earlier this year that it was considering strategic options for the pizza chain.
The London Company Income Equity Strategy discussed Restaurant Brands International Inc. (NYSE:QSR) in its Q1 2026 investor letter:
“Initiated: Restaurant Brands International Inc. (NYSE:QSR) – QSR is one of the world’s largest restaurant franchisors operating Burger King, Tim Hortons, Popeyes, and Firehouse Subs. The company earns steady royalty and fee income from thousands of franchise locations worldwide, producing naturally high profit margins and strong, predictable cash flow. QSR trades at a meaningful discount to peers like McDonald’s and Yum! Brands, largely due to concerns around Burger King’s U.S. performance. However, management has laid out a clear plan to simplify the business and improve restaurant quality, targeting a nearly fully franchised model by 2028. We see this as a classic “self-help” story where the company’s own actions drive improvement— not reliance on a strong economy. With durable global demand, growing international presence, an attractive dividend, and a clear path to closing the valuation gap with peers, we believe QSR is a strong long term investment and fits well within our Quality-at-a Reasonable-Price framework.”
