Bill Ackman Stock Portfolio: 8 Top Stock Picks

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

Number of Hedge Fund Holders as of Q2: 22

Pershing Square’s Equity Stake: $1.63 Billion

Restaurant Brands International Inc. (NYSE:QSR) is the third largest holding in Bill Ackman’s stock portfolio, operating as a quick-service restaurant. Pershing Square is the most remarkable shareholder of the company, with 23.14 million shares. It gathers revenues from the lease income of its franchised stores, royalty fees, and company-owned restaurant operations.

It is one of the companies that started to feel the wrath of heightened inflation and high interest rates that forced most people to eat from home. However, Restaurant Brands International Inc. (NYSE:QSR) could pick up some steam with the industry in value mode after the Fed cut by 50 basis points.

The company generates a consistent and increasing cash flow with its global expansion. One aspect of the company’s financial sheet that stands out is its cash surplus—more than $1 billion. Furthermore, any loss of pricing power and volume declines during the economic downturn will probably be offset by consumers moving away from the average and toward more affordable meals.

As the weakest link in the business, Restaurant Brands International Inc. (NYSE:QSR) is placing a large bet on its ability to turn around the Burger King franchise. It bought Carroll’s Restaurant Group earlier this year, which was formerly the biggest Burger King franchisee. At the end of June, Popeye’s China was also acquired. It is searching for a new partner for the China chain and intends to franchise most of Carroll’s restaurants.

After experiencing a decline for three years before COVID-19, the Tim Horton’s segment at RBI appears to have turned around. Tim Horton’s sales increased by 30% in 2023, according to RBI, due to several initiatives to boost transaction capacity and appeal to a wider market. Its total sales were up 175 in the second quarter to $2.08 billion, bolstered by acquiring Burger King restaurants in the US.

As of the close of Q2 2024, 22 hedge funds tracked by Insider Monkey reported having stakes in Restaurant Brands International Inc. (NYSE:QSR). The consolidated value of these stakes is over $2.2 billion.