RESTAURANT BRANDS INTERNATIONAL INC. $35 (New York symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 483.3 million; Market cap: $16.9 billion; Priceto- sales ratio: 0.7; Dividend yield: n.a.; TSINetwork Rating: Average; www.rbi.com) is the new company formed by the merger of Tim Hortons Inc. (old symbol THI) and Burger King Worldwide (old symbol BKW).
Restaurant Brands is the world’s third-largest fast-food chain, after McDonald’s and Yum Brands, with 14,000 Burger King restaurants and 4,590 Tim Hortons outlets in 100 countries. In all, these locations have annual sales of over $23 billion.
Roughly 72% of Tim Hortons shareholders opted to receive 3.0879 shares of the new company for each Tim Hortons share they held. A further 26% chose the default option of $65.50 (Canadian) in cash plus 0.8025 of a Restaurant Brands share, while 2% picked the all-cash option of $88.50 (Canadian) a share.
Brazilian private equity firm 3G Capital Management owns 51% of Restaurant Brands. Former Burger King investors hold 27%, while former Tim Hortons shareholders own the remaining 22%.
Restaurant Brands International is a hold.