Growth, Value, and Income: This Top TSX Stock Has Everything

by Project Compound

The pandemic has created a rather erratic situation in the stock market. Some high-quality growth plays have been hit harder than others. This is reflected in their stock prices recently.

One such company is Restaurant Brands (TSX:QSR)(NYSE:QSR). Here’s why I think the tide may be about to turn for this Canadian growth gem.

Tim Hortons’ turnaround just around the corner

Tim Hortons is underperforming significantly despite remaining a staple for Canadians and investors everywhere. The pandemic is to blame for this. We’re just simply not going for our usual doughnut on the way to the hockey rink or the office as we once were.

But this is only temporary.

When pandemic restrictions are lifted and we’re all free to frequent our favourite restaurants, Tim Hortons will once again boom. Indeed, in the areas of the country without restaurant closures, Tim Hortons’ sales are already taking off.

Thus, it’s a matter of time.

Long-term investors simply need to be patient with this stock. Being paid a dividend of more than 3% while one waits? Not a bad deal.

Multiple banners add to the appeal

Canadian investors thinking long term need to remember that Restaurant Brands is not all about Tim Hortons. This company also holds the iconic Burger King and Popeyes Louisiana Kitchen banners in its portfolio. These are some of the most recognized food banners around.

Accordingly, I stand strong on my stance of investing in this stock due to its diverse portfolio. These banners continue to hold excellent growth potential in key markets such as the Asia-Pacific region. Untapped potential in combination with world-class brands is a growth recipe for success.

Additionally, Restaurant Brands has bolstered its digital footprint throughout the pandemic with nearly $6 billion in global sales and a 200% increase in domestic sales. Indeed, the stock has already climbed more than 8% in 2021 and saw a 39% increase year over year. It delivered an increasing dividend for the ninth consecutive year in Q4 2020 and I don’t expect these factors to change in the near future.

Bottom line

For those seeking a pandemic reopening play, Restaurant Brands is about as good as it gets. This company is a high-quality growth play offered at a discount today. I firmly believe in a growth-friendly market; this stock could fetch more than $100 per share. At its current price, there’s plenty of upside left for long-term investors on which to capitalize.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool author Chris McDonald has no position in any stocks mentioned.

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