2. Restaurant Brands International Inc. (NYSE:QSR)
Number of Hedge Fund Holders: 26
Restaurant Brands International Inc. (NYSE:QSR) operates as a quick service restaurant company. According to regulatory filings, Pershing Square owned 23 million shares in Restaurant Brands International Inc. (NYSE:QSR) at the end of September 2023 worth $1.5 billion, representing 14.82% of the portfolio.
On November 7, investment advisory BMO Capital maintained an Outperform rating on Restaurant Brands International Inc. (NYSE:QSR) stock and lowered the price target to $85 from $88.
At the end of the second quarter of 2023, 26 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in Restaurant Brands International Inc. (NYSE:QSR), compared to 27 in the previous quarter worth $2 billion.
In its first half 2023 investor letter, Pershing Square Holdings, an asset management firm, highlighted a few stocks and Restaurant Brands International Inc. (NYSE:QSR) was one of them. Here is what the fund said:
“Restaurant Brands International Inc. (NYSE:QSR)’s franchised business model is a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from its four leading brands: Burger King, Tim Hortons, Popeyes, and Firehouse Subs. QSR’s various initiatives are leading to more consistent growth across each of its brands, as demonstrated by its first half results which were well above investors’ expectations with accelerating same-store sales trends each quarter. We believe that the addition of Patrick Doyle as Executive Chair of the company has already made a material contribution to the company’s operating trajectory.
Burger King’s international business, which represents more than half of the brand’s profits reported same-store sales, were more than 30% above pre-COVID levels, in-line with best-in-class peers. Management is focused on replicating Burger King’s international success in the U.S. through its “Reclaim the Flame” program. While the company is in the early stages of implementing the program, it is already seeing positive results, with domestic same-store sales reaching 11% above pre-COVID levels during the second quarter. With the majority of the funds earmarked for advertising and store refreshes yet to be deployed and a larger store remodeling effort now underway, the brand’s results should continue to improve.
Tim Hortons in Canada achieved same-store sales of 15% above pre-COVID levels due to improving traffic trends and new products in the afternoon food and cold beverage categories. Despite having nearly 70% market share in hot beverages and breakfast, Tim Hortons continues to gain share in each category…” (Click here to read the full text)
