RBI targets new markets for growth

Article Excerpt

Restaurant Brands has recovered strongly from its March 2020 low, largely because its focus on drive-thru lanes and home delivery service helped offset lost sales from COVID-19 store closures. It now aims to spur its long-term growth, and your returns, with a new acquisition and by expanding its popular Popeyes brand in overseas markets. RESTAURANT BRANDS INTERNATIONAL INC. $73 is a buy. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 460.3 million; Market cap: $33.6 billion; Price-to-sales ratio: 5.0; Dividend yield: 3.6%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator. That’s after McDonald’s (No. 1) and Yum Brands (No. 2). It has 27,667 fast-food outlets in over 100 countries: 18,923 Burger King, 5,137 Tim Hortons (coffee and donuts), and 3,607 Popeyes Louisiana Kitchen (fried chicken). The company is now buying privately held Firehouse Subs for $1 billion (all amounts except share price and market cap in U.S. dollars). Florida-based Firehouse Subs, which was founded in 1994 by brothers and former…