QSR (Update)

Restaurant Brands International Inc

Consumer


Presented:10/01/2015
Price:$35.16
Cap:$16.75B
Current Price:$71.21
Cap:$22.58B

Presented

Date10/01/2015
Price$35.16
Market Cap$16.75B
Ent Value$31.73B
P/E RatioN/A
Book Value$7.63
Div Yield1.37%
Shares O/S476.40M
Ave Daily Vol922,948
Short Int6.45%

Current

Price$71.21
Market Cap$22.58B
Restaurant Brands International, Inc. is a holding company, which engages in the operation of fast food chains through its subsidiaries, Tim Hortons Inc. and Burger King Worldwide, Inc. The company operates its business through the following segments: United States and Canada, Europe, the Middle East and Africa, Latin America and the Caribbean, Asia Pacific. The company was founded on August 25, 2014 and is headquartered in Toronto, Canada.

Please note, this is an update to Long - Restaurant Brands International (QSR), presented on November 5, 2014.

Publicly traded companies mentioned herein: Berkshire Hathaway Inc (BRK/A), Domino’s Pizza Inc (DPZ), Dunkin Brands Group Inc (DNKN), McDonald’s Corporation (MCD), Restaurant Brands International Inc. (QSR)

Highlights

The presenter remains long shares of Restaurant Brands International (QSR) and sees upside to the $60s over the next 24 months “assuming a +20x multiple can hold.”

QSR’s $17 billion market cap is misleading, as nearly 3/4 of its shares are owned by the combination of 3G, Pershing Square, and Berkshire. He quickly reviewed the Tim Hortons transaction, which was completed in late 2014 (100% franchise model, 90% Canadian business; Burger King (BK) et al paid 15x EBITDA). With a “completely unlevered, mismanaged cap structure and poor capital allocation (capex spend) track record” BK saw the opportunity to do what 3G did to BK.

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Idea Discussion

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