QSR (Update)

Restaurant Brands International Inc

Consumer


Presented:11/05/2014
Price:$32.98
Cap:$11.60B
Current Price:$71.21
Cap:$22.58B

Presented

Date11/05/2014
Price$32.98
Market Cap$11.60B
Ent Value$13.61B
P/E Ratio71.22x
Book Value$4.37
Div Yield1%
Shares O/S0.00M
Ave Daily Vol2
Short Int5.30%

Current

Price$71.21
Market Cap$22.58B
Restaurant Brands International Inc. owns and operates quick service restaurants under the Burger King and Tim Hortons brand names. As of February 17, 2015, it franchised or owned 19,043 restaurants in approximately 100 countries and U.S. territories worldwide. The company was founded in 1954 and is headquartered in Oakville, Canada.

Please note, this is an update to: Long — Restaurant Brands International Inc. (QSR), which was originally presented on 11/22/2013 (~$21).

Publicly traded companies mentioned herein: Restaurant Brands International Inc. (QSR), Tim Hortons Inc (THI / THI CN), McDonald’s Corporation (MCD), The Wendy’s Co (WEN), Dunkin Brands Group Inc (DNKN), Domino’s Pizza Inc (DPZ)

Highlights

Burger King’s (QSR) recently announced $11 billion acquisition of Tim Horton’s (THI; August, 2014) is potentially a transformational deal, and with shares trading at ~$32 the risk/ reward (and entry point) appear to be favorable. The presenter is sticking with his long position in QSR, and believes the market’s reaction to the news of the acquisition suggests there is underlying support for the share price in the high $20s. While QSR screens as an expensive stock on a P/E and EBITDA basis, 3G has a proven (and extraordinary) ability to cut costs and grow EBITDA that should drive upside to the mid-$40s over time.

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Idea Discussion

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