1 Super Safe Stock for Canadian Retirees: Restaurant Brands International Inc. (QSR)
Restaurant Brands International Inc. (RBI) stands out as a top contender for Canadian retirees seeking a safe, dividend-paying stock. Headquartered in Toronto, Canada, RBI operates some of the most recognizable quick-service restaurant brands worldwide, including Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs. These well-established brands provide RBI with a diversified revenue stream that helps mitigate risks, making it an appealing option for those prioritizing financial security during retirement.
Key Brands Driving Stability and Growth
Tim Hortons (TH)
- Canada’s beloved coffee and baked goods brand, known for its coffee, doughnuts, and Timbits.
- RBI’s continuous menu innovation and loyalty programs contribute to Tim Hortons’ strong performance in Canada.
Burger King (BK)
- A global fast-food giant specializing in flame-grilled burgers, fries, and specialty sandwiches.
- Burger King’s global expansion, especially in emerging markets, adds to RBI’s stable revenue generation.
Popeyes Louisiana Kitchen (PLK)
- Famous for Louisiana-style fried chicken and seafood dishes.
- Popeyes continues to benefit from strong consumer demand for premium fast-food chicken offerings, especially after the success of its iconic chicken sandwich launch.
Firehouse Subs (FHS)
- A premium sandwich chain added to RBI’s portfolio through a $1 billion acquisition in 2021.
- This addition diversified RBI’s offerings and allowed entry into the fast-casual sandwich market, appealing to health-conscious consumers.
Why Restaurant Brands International is a Safe Bet
1. Diversified Brand Portfolio
RBI’s ownership of multiple leading brands ensures a stable and predictable cash flow. With operations spanning over 100 countries, the company is well-insulated from localized economic downturns, making it a reliable option for long-term investors.
2. Aggressive Global Expansion
- RBI has ambitious plans for Firehouse Subs, including opening 500+ locations in Brazil and expanding into Australia through a partnership with Retail Food Group.
- Tim Hortons is also expanding internationally, particularly in China and India, targeting high-growth regions.
3. Consistent Dividend Payments
- RBI has a history of strong dividend payouts, supported by steady cash flows from its globally diversified brands.
- With a dividend yield hovering around 3%, it offers retirees a dependable income source.
4. Resilience in Challenging Markets
- Despite facing a 6.5% stock price decline in 2024, RBI’s diversified revenue base and international expansion strategy provide resilience against economic fluctuations.
- Analysts believe the global footprint of RBI brands gives it long-term pricing power and consumer loyalty, crucial for steady earnings.
Stock Performance: Restaurant Brands International (QSR)
| Metric | Value |
|---|---|
| Market Cap | $41.29B |
| 52-Week High | $109.50 |
| 52-Week Low | $86.06 |
| 50-Day Moving Average | $92.44 |
| 200-Day Moving Average | $95.36 |
| Beta | 0.954 |
| Dividend Yield | 3% |
📌 RBI’s steady stock performance, with consistent dividends and brand resilience, makes it an attractive choice for retirees seeking safety.
📌 The chart shows Restaurant Brands International Inc. (QSR) stock performance over the past year, highlighting key support around $86 and resistance near $109. The stock is currently trading near its 50-day moving average ($91.74), indicating potential consolidation after a period of volatility.
Peer Comparison: Restaurant Brands International Inc. (QSR)
| Code | Name | GIC Sector | Market Cap | Beta | 52-Week High | 52-Week Low | 50-Day MA | 200-Day MA | Shares Short | Short Ratio | Short Percent |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MNS | Royal Canadian Mint – Canadian Silver Res. | Consumer Discretionary | – | 0.52 | 29.92 | 15.69 | 25.31 | 24.15 | 0 | 0.00 | 0.00% |
| ATD | Alimentation Couche-Tard Inc A | Consumer Discretionary | 66.61B | 0.885 | 86.88 | 69.86 | 76.68 | 77.64 | 3,498,466 | 3.32 | 0.0114 |
| DOL | DOLlarama Inc | Consumer Discretionary | 40.20B | 0.51 | 152.87 | 100.01 | 139.48 | 135.17 | 2,313,787 | 3.59 | 0.0114 |
| QSR | Restaurant Brands Intl. Inc. | Consumer Discretionary | 40.01B | 0.954 | 109.50 | 86.06 | 91.74 | 95.11 | 1,842,051 | 3.13 | 0.0067 |
| QSP-UN | RBI Limited Partnership | Consumer Discretionary | 29.73B | 0.837 | 107.80 | 87.11 | 91.83 | 94.95 | 59 | 1.05 | 0.00% |
| MG | Magna International Inc | Consumer Discretionary | 15.31B | 1.618 | 74.15 | 51.34 | 58.44 | 58.80 | 3,954,959 | 6.59 | 0.0127 |
| GIL | GILdan Activewear Inc. | Consumer Discretionary | 11.70B | 1.553 | 78.79 | 43.58 | 71.17 | 62.00 | 886,681 | 3.37 | 0.0066 |
| CTC-A | Canadian Tire Corp. Ltd. | Consumer Discretionary | 8.17B | 1.297 | 168.00 | 120.39 | 156.78 | 150.30 | 944,777 | 2.85 | 0.0205 |
| CTC | Canadian Tire Corp. Ltd. | Consumer Discretionary | 8.17B | 1.297 | 268.92 | 190.64 | 219.56 | 224.50 | 150 | 1.92 | 0.00% |
| ATZ | Aritzia Inc | Consumer Discretionary | 7.59B | 1.784 | 73.44 | 31.82 | 62.91 | 48.08 | 1,643,119 | 2.26 | 0.0271 |
📌 This peer comparison table shows Restaurant Brands International (QSR) relative to other major Canadian consumer discretionary stocks. It highlights QSR’s stable market cap, lower volatility (Beta 0.954), and balanced price movements, underscoring its appeal as a safe dividend stock for long-term investors.
Valuation Measures
| Current | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |
|---|---|---|---|---|---|---|
| Market Cap | 28.80B | 31.59B | 30.50B | 33.71B | 32.30B | 28.89B |
| Enterprise Value | 49.53B | 51.94B | 48.94B | 51.82B | 49.68B | 46.78B |
| Trailing P/E | 19.66 | 18.10 | 18.18 | 21.06 | 26.98 | 20.50 |
| Forward P/E | 11.82 | 13.68 | 14.97 | 16.81 | 17.36 | 13.85 |
| PEG Ratio (5yr expected) | — | — | — | — | — | — |
| Price/Sales | 3.38 | 4.39 | 4.47 | 5.14 | 5.19 | 4.50 |
| Price/Book | 6.53 | 7.62 | 7.51 | 8.74 | 8.41 | 7.47 |
| Enterprise Value/Revenue | 4.16 | 5.14 | 4.98 | 5.44 | 5.45 | 5.11 |
| Enterprise Value/EBITDA | 13.11 | 15.81 | 15.24 | 17.05 | 17.82 | 16.59 |
📌 This table highlights Restaurant Brands International’s (QSR) key valuation metrics, showing stable growth, improving earnings expectations with a declining Forward P/E, and consistent profitability reflected in the Enterprise Value/EBITDA ratio.
Key Takeaways: Why RBI is a Safe Stock for Retirees
✅ Diversified Revenue Stream: Multiple strong brands reduce business risks.
✅ Global Expansion Strategy: Strategic growth in Brazil, Australia, China, and India.
✅ Stable Dividends: Consistent dividend yield (~3%) provides steady income.
✅ Valuation Upside: Attractive P/E ratios compared to industry peers.
✅ Resilient Performance: Weathered 2024 market fluctuations with robust plans for future growth.
💡 Final Thoughts
Restaurant Brands International (QSR) offers Canadian retirees a safe and stable investment opportunity. The company’s diversified portfolio, consistent dividend payouts, and aggressive international expansion make it a reliable stock for those seeking security and steady returns. Its proven track record of adapting to consumer trends and maintaining profitability ensures long-term safety, making RBI a must-have stock for retirement portfolios.
