Core Viewpoint - Bill Ackman's Pershing Square Capital Management has a strong focus on individual stock analysis and has generated significant returns, with a notable investment in Restaurant Brands International (QSR) which provides reliable passive income through dividends [1][2]. Company Overview - Pershing Square Capital Management owned 10 stocks at the end of Q2, focusing on thorough bottom-up analysis [2]. - QSR has been part of Pershing's portfolio since its IPO in 2012 and owns popular fast-food chains like Burger King, Tim Horton's, and Popeye's [4]. Financial Performance - Over the past five years, QSR's stock has only increased by about 13%, facing challenges such as competition, supply chain issues, and inflation [5]. - QSR has a high debt level of approximately $13.4 billion and a debt-to-equity ratio exceeding 4 as of the end of Q2 [5]. Business Model and Strategy - Ackman and his team favor QSR for its "high-quality, capital-light" franchise model, which generates royalties from leading fast-food brands [6]. - Burger King International reported over 4% same-store sales growth year-over-year, outperforming McDonald's [6]. - QSR is revamping its U.S. business and plans to invest $500 million into the Carrols Restaurant Group to modernize over 600 restaurants before refranchising [7]. Dividend and Cash Flow - QSR offers a high dividend yield of approximately 3.90%, with $544 million paid in dividends in the first half of the year, translating to an annual run rate of about $1.09 billion [9][10]. - Over the past 12 months, QSR generated free cash flow of $1.35 billion, providing a buffer for dividend payments [10]. - Despite net income of $484 million in the first half of the year being below dividends paid, management remains optimistic about future food price cycles [10][11]. Investment Position - As of the end of Q2, Pershing's stake in QSR was valued at $1.52 billion, yielding approximately $59.5 million in dividends annually based on the 3.90% yield [12].

Core Viewpoint - Restaurant Brands International Inc. (RBI) has received an unsolicited mini-tender offer from Ocehan LLC to purchase a small percentage of its common shares at a specified price in Canadian dollars [1] Group 1: Offer Details - Ocehan LLC is proposing to buy up to 50,000 common shares of RBI, which represents approximately 0.02% of the company's outstanding shares [1] - The offer price is set at CAD $66.50 per share [1]

Core Insights - Restaurant Brands International Inc (QSR), Arcos Dorados Holdings Inc (ARCO), and Bruker Corp (BRKR) will trade ex-dividend on 9/23/25, with respective dividends of $0.62, $0.06, and $0.05 [1] - The expected price adjustments for the stocks on the ex-dividend date are approximately 0.99% for QSR, 0.89% for ARCO, and 0.15% for BRKR [1] - The estimated annualized yields based on recent dividends are 3.94% for QSR, 3.56% for ARCO, and 0.60% for BRKR [9] Company Summaries - **Restaurant Brands International Inc (QSR)**: Will pay a quarterly dividend of $0.62 on 10/7/25, with an expected yield of 3.94% [1][9] - **Arcos Dorados Holdings Inc (ARCO)**: Will pay a quarterly dividend of $0.06 on 9/26/25, with an expected yield of 3.56% [1][9] - **Bruker Corp (BRKR)**: Will pay a quarterly dividend of $0.05 on 10/3/25, with an expected yield of 0.60% [1][9] Market Performance - On the trading day prior to the ex-dividend date, QSR shares are down about 1.5%, ARCO shares are down about 0.4%, while BRKR shares are up about 3.6% [10]

Core Viewpoint - Restaurant Brands International (RBI), the owner of Burger King and Tim Hortons, has experienced a decline in stock performance in recent quarters, with shares dropping approximately 10% including dividends [1]. Company Performance - The stock has been a relatively weak performer among consumer-facing stocks, indicating challenges in maintaining investor confidence and market position [1]. Investment Strategy - The investment approach suggested is a long-term, buy-and-hold strategy, focusing on stocks that can sustainably deliver high-quality earnings, particularly in the dividend and income sectors [1].

Core Viewpoint - Restaurant Brands International (RBI), the owner of Burger King and Tim Hortons, has experienced a decline in stock performance in recent quarters, with shares dropping approximately 10% including dividends [1]. Company Performance - The company's stock has been a relatively weak performer compared to other consumer-facing stocks [1]. - The decline in shares indicates challenges in maintaining high-quality earnings sustainably [1]. Investment Strategy - The investment approach discussed emphasizes a long-term, buy-and-hold strategy, particularly favoring stocks that can deliver sustainable high-quality earnings [1].

Core Viewpoint - Restaurant Brands International Inc. (RBI) is set to release its third quarter 2025 financial results on November 5, 2025, and will conduct an investor conference call at 8:30 a.m. on the same day [1] Company Summary - RBI will announce its financial performance for the third quarter of 2025 [1] - The investor conference call is scheduled for the morning of November 5, 2025, at 8:30 a.m. [1]

Core Insights - Pilgrim's Pride Corporation's Small Bird segment experienced growth due to increased demand in the quick-service restaurant (QSR) channel during Q2 2025, leading to expanded sales and margins [1][9] - The overall margins for the Small Bird segment remained strong, driven by significant demand from key QSR customers, with foodservice volumes increasing nearly 10% year-over-year [2][9] - Management highlighted the company's focus on quality, service, and innovation to meet QSR demand, positioning Small Bird products effectively in a price-sensitive market [3] Industry Trends - The chicken-focused QSRs outperformed the broader dining sector by leveraging chicken's affordability, with operators focusing on value offerings and targeted promotions to attract consumers [2] - The resilience of the Small Bird segment was crucial for Pilgrim's results amid a challenging macroeconomic environment, showcasing the strategic importance of QSRs as a stable, high-volume channel [4] Financial Performance - Pilgrim's Pride shares have declined by 6.7% over the past three months, underperforming both the industry and the broader Consumer Staples sector [5] - The company currently trades at a forward 12-month P/E ratio of 8.79, which is below the industry average of 12 and the sector average of 16.89, indicating a modest discount relative to peers [10]

Core Viewpoint - Burger King's closure of its Shenzhen Huaqiangbei store is part of a broader strategic adjustment by the company, reflecting ongoing challenges in the Chinese market [2] Company Performance - As of June 30, 2023, Burger King's store count in China decreased from 1,474 at the end of 2022 to 1,367, resulting in a net reduction of 107 stores within six months [2] - As of August 15, 2023, the number of operating Burger King stores in China was reported to be 1,415 [2] Strategic Changes - In early 2023, Restaurant Brands International (RBI) initiated a strategic overhaul for Burger King China, appointing a local team to lead the transformation [2] - Key appointments include Chen Wenrui as the new Chief Executive Officer and Chief Supply Chain Officer, and Xue Bing as the Chief Transformation Officer [2] - Burger King China plans to open 40 to 60 new restaurants by 2025, focusing on core business districts in first and second-tier cities [2]

Core Insights - Happy Belly Food Group Inc. has announced a franchise agreement for its Heal Wellness brand in the Collingwood area of Ontario, focusing on fresh smoothie bowls and smoothies [1][3] - The company aims for organic growth and to become the leading smoothie bowl chain in North America, with 27 Heal locations currently open and 168 more in the development pipeline [3][5] - Happy Belly has a total of 626 contractually committed retail franchise locations across its portfolio, with plans to significantly expand this pipeline in the latter half of 2025 and 2026 [5][10] Company Overview - Happy Belly Food Group Inc. is a leader in acquiring and scaling emerging food brands across Canada [10] - Heal Wellness specializes in providing quick, fresh wellness foods, including a diverse range of smoothie bowls and smoothies made with superfood ingredients [7]

Core Points - Restaurant Brands International Inc. (RBI) intends to renew its normal course issuer bid (NCIB) for common shares, allowing for the repurchase of up to U.S.$1,000 million of shares through September 30, 2027 [1][2] - The new repurchase authorization replaces the previous two-year authorization set to expire on September 30, 2025, and reflects RBI's commitment to capital allocation flexibility while prioritizing debt reduction [1][4] - Under the NCIB, RBI may purchase up to 32,326,078 common shares, representing 10% of its public float as of September 2, 2025, during the period from September 16, 2025, to September 15, 2026 [2][3] Company Overview - RBI is one of the largest quick service restaurant companies globally, with nearly $45 billion in annual system-wide sales and over 32,000 restaurants in more than 120 countries [5] - The company owns four prominent brands: TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®, which have been serving customers for decades [5] - RBI is focused on improving sustainable outcomes related to food, the planet, and communities through its Restaurant Brands for Good framework [5]