Seth Klarman Stock Portfolio: 5 Best Stocks to Buy

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

Baupost Group’s Stake Value: $597,208,000

Stock Upside: 13.65%

Number of Hedge Fund Holders: 31

Restaurant Brands International Inc. (NYSE:QSR) is one of the best Seth Klarman portfolio stocks to buy. On June 9, Expansión, a Spanish economic newspaper, reported that Abu Dhabi sovereign investor Mubadala has hired advisers to prepare a potential bid for Restaurant Brands Europe (RBE), the company that operates Burger King, Popeyes, and Tim Hortons restaurants across Spain and Portugal, and which is a corporate affiliate of Restaurant Brands International Inc. (NYSE:QSR).

RBE is currently majority-owned by British private equity firm Cinven, which holds roughly 70% of the business, while Chairman Gregorio Jiménez owns about 20%. Restaurant Brands International holds the remaining 10% through its Burger King Europe unit.

According to Expansión, Cinven took control of RBE in 2021 when it valued the company at €1.2 billion, and after more than doubling the business’s size, it is now looking to cash in on its gains. The newspaper added that RBE’s current valuation, including debt, is estimated at €2-3 billion, and that Cinven initially considered a dual-track process (weighing both an IPO and a direct sale) before settling on a direct sale.

Mubadala joins a competitive field that already includes US firms Meritage Group and Apollo Global Management, said Expansión. It added that non-binding offers are expected in the coming weeks, and a sale possibly resolved before the August summer break.

Restaurant Brands International Inc. (NYSE:QSR) is a quick-service restaurant company. It owns and franchises four brands: Tim Hortons, a coffee and baked goods chain; Burger King, a hamburger restaurant chain; Popeyes Louisiana Kitchen, a chicken concept; and Firehouse Subs, a sandwich chain.