Your current stance on QSR - Stocktrades Canada

Hi gentlemen
I was wondering if there is any update regarding your stance on Restaurant Brands International. The Bull list stance was changed to Neutral in March 2022. The latest update was in May 2022 and the overall thesis was positive. My take was that you liked the growth prospects and valuation of the company but were reluctant to keep it as a buy because you felt that the combination of exposure in Russia and macroeconomics (inflation and labour shortages) might cause short term challenges. Is my understanding correct? And if so has anything changed?
Thanks

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Asked on October 24, 2022 10:04 am

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Private answer

Your understanding is 100% correct. We were worried about labor issues but not THAT worried, but then when the Russia situation hit, it become two headwinds that had a chance to impact the company.

Now in late 2022 we sit with a company with a debt to equity of nearly 6 and rapidly increasing policy rates from central banks. So, we've held off from adding it back onto the list.

As of right now, still a bit too many headwinds for us to consider re-adding it at this time.

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Posted by Dan Kent

Answered on October 25, 2022 7:50 am

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