In the year ahead, restaurants are focused on restoring traffic and preserving profit margins after a rocky 2025. With customers seeking value and pushing back on price increases, franchise quick-service restaurants (QSRs) offer a lower-risk way to invest in the industry. How franchise economics reduce risk Restaurant stocks that deploy the franchise model earn royalties on sales rather than running their own stores. Franchisees cover the cost of new locations and handle labor and food costs. Where to in ...

Core Insights - Restaurant Brands International Inc. (NYSE:QSR) is recognized as one of the best restaurant stocks to buy currently [1] Analyst Sentiment - Approximately 60% of analysts maintain a bullish outlook on Restaurant Brands International, with a median price target of $77.50, indicating a potential upside of 16.10% [2] - The highest target among analysts suggests a potential upside of 39.30%, reflecting varied expectations for the stock's medium-term performance [2] Analyst Ratings and Expectations - RBC Capital analyst Logan Reich reaffirmed an "Outperform" rating on December 9, 2025, raising the price target to $82.00 from $77.00, positioning Restaurant Brands International as a top idea among global franchised fast-food companies [3] - The positive outlook is attributed to improving momentum at Burger King U.S., with management reporting enhancements in brand value through menu innovation and operational improvements [4] Financial Performance - Management reported a net leverage ratio of 4.4x at the end of Q3 2025, indicating reduced leverage [4] - The company has total liquidity of approximately $2.5 billion, which includes $1.2 billion in cash [4] Company Overview - Restaurant Brands International Inc. operates and franchises several well-known brands, including Burger King, Tim Hortons, Popeyes, and Firehouse Subs, across more than 100 countries [5]

Core Insights - Baupost Group's latest 13F filing reveals a highly selective and concentrated portfolio, focusing on durable businesses with long-term cash generation potential [1][2] Investment Moves - **Restaurant Brands International (QSR)**: Increased by 4,203,300 shares to 8,252,862 shares, representing a $529.3 million position (11.05% of the portfolio). This is now Baupost's largest equity holding, indicating a belief in significant mispricing relative to its stable franchise model and cash flows [3][4] - **Elevance Health (ELV)**: Increased by 703,000 shares to 1,319,000 shares, totaling a $426.2 million position (8.90%). The increase suggests confidence in the company's predictable cash flows and resilience in a politically noisy sector [5][6] - **Union Pacific (UNP)**: Newly established position with 1,496,204 shares, valued at $353.7 million (7.38%). The railroad's high barriers to entry and pricing power align with Baupost's focus on downside protection [7][8] - **Alphabet (GOOG)**: Reduced by 775,850 shares to 1,858,138 shares, now a $452.6 million position (9.45%). The reduction reflects portfolio risk management rather than a loss of conviction [9] - **CRH plc (CRH)**: Trimmed by 442,000 shares to 3,383,395 shares, valued at $405.7 million (8.47%). The trim indicates a disciplined approach to valuation, despite the long-term thesis remaining intact [10] - **Full Exits**: Baupost exited several positions entirely, including Viasat, Liberty Broadband, ICON plc, and Amcor, signaling a shift in risk-reward balance [11][12] Strategic Focus - The quarter was characterized by conviction-driven capital redeployment into high-confidence ideas, particularly in sectors like restaurants, railroads, healthcare, and materials [13][14] - Trimming positions like GOOG and CRH reflects a focus on risk management and valuation discipline rather than a bearish outlook [15] - The top 10 positions account for over 75% of disclosed assets, emphasizing Baupost's belief in concentration as a strategy against ignorance [16] - The portfolio prioritizes downside protection, with upside driven by business durability rather than macroeconomic bets [17]

Core Viewpoint - Restaurant Brands has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, which reflects the changing earnings picture of a company [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [3]. Company Performance and Outlook - The upgrade for Restaurant Brands signifies an improvement in the company's underlying business, which is expected to positively affect its stock price [4]. - Analysts have raised their earnings estimates for Restaurant Brands, with the Zacks Consensus Estimate increasing by 0.6% over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade to Zacks Rank 2 places Restaurant Brands in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Financial Performance - For the full-year 2024, the company's revenue rose 5% to around $82.7 billion, while net income jumped 28% to around $4.4 billion, or $1.29 in basic earnings per share [1] - Oneok Inc's revenue rose roughly 22.7% to around $21.7 billion, with net income increasing 14% to around $3 billion, or $5.32 per share [10] - Permian Resources Corp's revenue surged 60% to around $5 billion, with net income increasing 106% to around $985 million, or $1.54 in basic earnings per share [14] - DTE Energy's annual revenue declined 2% to $12.4 billion, while net income rose marginally to $1.4 billion, or $6.78 per share [18] - Restaurant Brands International's revenue rose 17% to $8.4 billion, but net income declined 14% to around $1 billion, or $3.21 per share [22] Market Capitalization and Stock Performance - The company's market cap is around $56.3 billion, with shares trading at $16.21 per share [1] - Oneok's market cap is nearly $46 billion, with stock trading at $71.69 per share [10] - Permian Resources has a market cap of nearly $12 billion, with stock trading at $13.77 per share [14] - DTE Energy's market cap stands at $26.8 billion, with shares trading at $129.90 per share [18] - Restaurant Brands International's market cap is around $23 billion, with shares trading at $69.91 [22] Dividend Information - Energy Transfer pays an annualized dividend of $1.33 per share, translating to a forward yield of 8.2% [6] - Oneok pays an annualized dividend of $4.12 per share, yielding 5.75% [10] - Permian Resources pays an annualized dividend of $0.60 per share, with a forward yield of 4.35% [15] - DTE Energy pays an annualized dividend of $4.66 per share, translating to a forward yield of nearly 3.6% [19] - Restaurant Brands International pays an annualized dividend of $2.48 per share, yielding just over 3.5% [22] Analyst Ratings and Price Targets - Energy Transfer is rated a Strong Buy by 17 analysts, with a high price target of $25 per share, suggesting over 54% upside potential [7] - Oneok is rated a Moderate Buy by 19 analysts, with a high price target of $114 per share, representing roughly 59% upside [11] - Permian Resources is rated a Strong Buy by 24 analysts, with a high price target of $23 per share, indicating 67% upside [15] - DTE Energy has a Strong Buy rating from 17 analysts, with a high price target of $158 per share, reflecting up to 22% upside [19] - Restaurant Brands International is rated a Moderate Buy by 29 analysts, with a high price target of $96 per share, implying about 37% upside [23]

Core Insights - Restaurant Brands International Inc. (NYSE:QSR) is highlighted as a strong investment opportunity, with a significant position in Seth Klarman's portfolio valued at $529.3 million, indicating confidence in the stock's potential [1] - Analysts project an average price target suggesting a 10% upside, with the highest target indicating a potential upside of 36% [1][3] - RBC Capital maintains an Outperform rating with a revised price target of $82, citing improving momentum at Burger King US and strategic growth investments as key factors [2] Financial Performance and Analyst Ratings - Argus Research upgraded Restaurant Brands to Buy from Hold with a price target of $85, emphasizing the company's strong brand portfolio and competitive pricing strategies in an inflationary environment [3] - RBC Capital's analyst views Restaurant Brands as a top idea among international fast food franchises, highlighting its growth-focused investments and lower leverage as supportive of stock momentum [2] Strategic Initiatives - The company has entered a joint venture with CPE, a Chinese asset manager, to enhance Burger King's growth in China, aiming to expand its presence to over 4,000 outlets by 2035 from approximately 1,250 [4] - This strategic move is part of a broader effort to capitalize on market opportunities and strengthen the brand's footprint in international markets [4] Company Overview - Restaurant Brands International Inc. operates several well-known food and coffee chains, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs, positioning itself as a significant player in the global fast food industry [5]

Company Overview - Restaurant Brands International is a multinational quick service portfolio that includes four well-known brands: Tim Hortons, Burger King, Popeyes, and Firehouse Subs [2] Growth Strategy - The company's long-term growth algorithm targets annual system sales growth of over 8%, supported by approximately 3% comparable sales growth and around 5% net unit growth over time [2] - A recent joint venture partnership with CPE, a new Burger King master franchisee in China, is expected to enhance net unit growth [2]

Core Viewpoint - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Open Text, Restaurant Brands, and Essential Utilities recently announcing dividend hikes and offering yields over 3% [1] Open Text - Open Text Corp. is an information management software company that assists businesses in organizing, storing, and protecting data [2] - The company has raised its dividend for 12 consecutive years, with a recent increase of 5% to $0.2750 per share, translating to an annual payout of $1.10 per share [3] - The current dividend yield for Open Text is 3.30% [3] - As of September 30, the company's annual revenue was $5.19 billion, and it reported Q1 2026 revenues of $1.29 billion and EPS of $1.05, both exceeding consensus estimates [4] Restaurant Brands International - Restaurant Brands International Inc. operates well-known quick-service restaurant brands including Tim Hortons, Burger King, Popeyes, and Firehouse Subs [5] - The company has increased its dividends for 10 consecutive years, with a recent hike from $0.58 to $0.62 per share, equating to an annual payout of $2.48 per share [6] - The current dividend yield for Restaurant Brands is 3.65% [6] - As of September 30, the company's annual revenue was $9.26 billion, and it reported Q3 2025 EPS of $1.03 and revenues of $2.45 billion, both surpassing consensus estimates [7] Essential Utilities - Essential Utilities Inc. provides water, wastewater, and natural gas services in the U.S. [7] - The company has increased its dividends for 34 consecutive years, with a recent hike of 5.25% to $0.3426 per share, resulting in an annual payout of $1.37 per share [8] - The current dividend yield for Essential Utilities is 3.54% [8]

Core Viewpoint - Bill Ackman sees significant upside potential in his investments, particularly in Uber, Brookfield Corporation, and Alphabet, among others, due to their strong fundamentals and growth prospects [1][2]. Investment Strategy - Ackman focuses on high-quality businesses with strong cash flow and limited downside risk, often taking activist positions to unlock shareholder value [2][3]. Portfolio Overview - Pershing Square Capital Management holds shares in 15 large-cap companies, with 75% of its $15 billion stock portfolio concentrated in five key holdings [3]. Key Holdings - **Uber Technologies (19.6%)**: Ackman appreciates Uber's strong network effects, management quality, operational performance, and cash flow, expecting earnings per share to grow over 30% annually [4][5]. - **Brookfield Corporation (17.7%)**: Added to the portfolio in 2024, Brookfield is positioned for growth due to AI infrastructure demand and an aging population, potentially quadrupling its wealth solutions asset base to $600 billion [6][8]. - **Alphabet (14.4%)**: Ackman has invested in Alphabet due to its rapid AI integration and strong financial performance, including $100 billion in revenue and a 33% year-over-year profit growth [9][11]. - **Howard Hughes Holdings (13.4%)**: Ackman aims to transform Howard Hughes into a diversified holding company, increasing its stake to 47% and focusing on unlocking value from real estate assets [12][13]. - **Restaurant Brands (10.6%)**: The company is valued for its capital-light business model and plans to enhance sales through investments in Burger King and expansion in Tim Hortons [14][17].

Company Overview - Restaurant Brands International Inc. (NYSE:QSR) owns and operates quick-service restaurant chains, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs [2]. Financial Performance - The company reported a solid quarter, achieving a healthy top and bottom line beat, with same-store sales increasing by 4% [1]. - The Tim Hortons Canada business continues to perform exceptionally well, contributing positively to the overall results [1]. - The international division, which includes nearly all overseas operations except for China, also showed strong performance [1]. Market Reaction - Following the positive earnings report, the stock rallied by 1.5%, breaking a five-session losing streak [1]. - Despite the good quarter, the stock later gave back the gains, indicating persistent selling pressure in the market [1].