New soft drink deal cuts RBI’s risk

Article Excerpt

RESTAURANT BRANDS INTERNATIONAL INC. $67 is a buy for aggressive investors. The fast-food operator’s (New York symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 453.0 million; Market cap: $30.4 billion; Price-to-sales ratio: 4.5; Dividend yield: 3.3%; TSINetwork Rating: Average; www.rbi.com) four restaurant banners in the U.S.—Burger King, Popeyes, Firehouse Subs and Tim Hortons—have renewed their relationship with Coca-Cola until 2033. Under the new agreements, Coca-Cola will invest in and support marketing priorities with all four banners to drive additional traffic and contribute to franchisee profitability. The company will probably earn $3.24 a share for all of 2023, and the stock trades at a reasonable 20.7 times that estimate. The $2.20 dividend yields a solid 3.3%. Restaurant Brands is a buy. buy. …