11 Best Fast Food Stocks To Invest In Right Now

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

Number of Hedge Fund Holders: 22

Restaurant Brands International Inc. (NYSE:QSR) is a powerhouse in the restaurant industry. Headquartered in Toronto, Canada, it operates four major global food chains: Burger King, Tim Hortons, Popeyes, and Firehouse Subs. This diversified portfolio allows the company to target various customer segments across different markets.

In February, Restaurant Brands International Inc. (NYSE:QSR) declared its five-year growth outlook, under which it plans on having a minimum of 40,000 restaurants, $60 billion in system-wide sales, and $3.2 billion of adjusted operating income by 2028. As part of these efforts, Restaurant Brands International Inc. (NYSE:QSR) made two strategic acquisitions this year to further expand its already solid global footprint and bolster its revenue streams.

In May, the company announced that it had acquired Carrols Restaurant Group, Inc., the largest Burger King franchisee in the United States, having 1,023 restaurants across 23 states. It also operated 59 Popeyes restaurants in 6 states. The deal had a total enterprise value of around $1 billion. In addition to this, Restaurant Brands International Inc. (NYSE:QSR) would also spend another $500 million on reimaging over 600 Carrols restaurants before re-franchising them.

Later in June, the company announced two investments in China. The first involved the acquisition of Popeyes China from Tims China for an enterprise value of $15 million. The second was that it agreed to co-invest $50 million alongside Cartesian Capital to fuel the growth of Tims China.

These strategic investments in the world’s major quick-service restaurant markets have led to a bullish sentiment about the stock’s long-term potential. The company’s financial performance is also robust. During Q2 2024, Restaurant Brands International Inc. posted revenue of $2.08 billion, growing by over 17% year-over-year, due to a 5% increase in system-wide sales led by significant contributions from Tim Hortons and international operations. Adjusted diluted EPS was logged at 86 cents, representing an organic growth of 3.1% from last year.

Wall Street analysts have a consensus Buy rating on QSR and anticipate a share price upside potential, in median terms, of 18.6%. Restaurant Brands International Inc. (NYSE:QSR) is one of the best fast food stocks to invest in right now, with 22 hedge funds tracked by Insider Monkey having investments in the company, as of Q2 2024.