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Why is Restaurant Brands so Cheap?

How Timmies is winning us back after two years of decline.

Andrew Willis 4 March, 2022 | 4:28AM
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Andrew Willis: Will Restaurant Brands ever recover to the peak it hit before the pandemic? Investors wondering this should consider how well recent loyalty and digital initiatives have done.

The NHL cards were a hit at Tim Hortons in Canada, and other projects to improve loyalty, convenience and competitiveness may just pay off. Equity analyst Sean Dunlop says a revamped loyalty program, improved coffee and a focus on drive-thru purchases, were prudent moves, and help drive same-store sales forecasts in line with inflation following two consecutive years of decline.

And now consider the international front, where we forecast around 6% annual sales growth until 2026 for all of RBI’s brands including Burger King and Popeye’s – an outlook shared only by a few fast food portfolios.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Restaurant Brands International Inc89.38 CAD0.35Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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