Billionaire Bill Ackman’s Top 3 Stock Picks

In this article, we discuss billionaire Bill Ackman’s top 3 stock picks. If you want to see more of billionaire Bill Ackman’s top stock picks, go directly to Billionaire Bill Ackman’s Top 6 Stock Picks.

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

Pershing Square Capital Management’s Stake Value as of 9/30: $1,286,646,000

Percentage of Pershing Square Capital Management’s 13F Portfolio as of 9/30: 16.33%

Pershing Square Capital Management upped its share count in Restaurant Brands International Inc. (NYSE:QSR) by 2% in Q3 to end the period with a stake value of almost $1.29 billion. While the broader market has declined in 2022, Restaurant Brands International Inc. (NYSE:QSR) is actually up almost 13.4% year to date as of November 21 as the company’s results have been strong despite the inflationary headwinds.

For the third quarter, Restaurant Brands International Inc. (NYSE:QSR) reported EPS of $1.17 on revenue of $1.73 billion versus the consensus of $0.80 and $1.66 billion. For the period, global comparable sales rose 9% and Tim Hortons same store sales rose 9.8%. Burger King same store sales increased 10.3%.

Bill Ackman commented on Restaurant Brands International Inc. (NYSE:QSR) in a letter to shareholders on August 2022,

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 is investing in each of its brands to position them for sustainable, long-term growth…

QSR’s franchised-based royalty model is particularly attractive in an inflationary environment. QSR’s revenues benefit when its franchisees increase prices, but its cost structure is not subject to the same inflationary pressures. QSR can continue to grow its business with minimal capital required as its franchisees open new units.