10 Best Stocks to Buy According to Seth Klarman

7. Restaurant Brands International Inc. (NYSE:QSR)

Baupost Group’s Equity Stake: $189.13 Million

Number of Hedge Fund Holders: 31

Restaurant Brands International Inc. (NYSE:QSR) operates as a quick-service restaurant company. It owns and franchises iconic brands, including Tim Horton’s, Burger King and Popeyes. While the stock was down by about 14% in 2024, it has started showing signs of bottoming out, affirming why it is one of the best stocks to buy.

The bounce back comes amid improving underlying fundamentals attributed to lower interest rates that have bolstered customer’s purchasing power. Restaurant Brands International Inc. (NYSE:QSR) delivered better-than-expected fourth-quarter and full-year 2024 results. It logged earnings per share of $0.81 on revenue of $2.3 billion, better than earnings of $0.50 and revenues of $2.29 that analysts expected.

Net sales increased 26% year-over-year following the acquisition of the largest U.S. Burger King franchisee and Popeyes China. Despite having been in turnaround mode for over two years, the Addams Family menu has helped the burger restaurant regain customers, as seen by its quarterly statistics.

Additionally, Restaurant Brands International Inc. (NYSE:QSR) intends to begin selling off a few of the eateries it purchased when it bought Carrols Restaurant Group. Although Restaurant Brands had not intended to begin franchising until 2027, the agreement was intended to expedite the chain’s restaurant renovations. It anticipates spending $400 million to $450 million on tenant inducements, consolidated capital expenditures, and other incentives in 2025.