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

·3 min read
Mature financial advisor showing report to young couple for their investment

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.

The post Growth, Value, and Income: This Top TSX Stock Has Everything appeared first on The Motley Fool Canada.

Like this top pick? Here are a few more to choose from right now:

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

More reading

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

5 Years From Now, You’ll Probably Wish You’d Grabbed These Stocks…Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. You aren’t on the list to receive our newest stock picks — but it’s not too late. 2021