Pershing Square Holdings, an investment holding company, released its first half 2023 investor letter. A copy of the same can be downloaded here. The fund generated NAV performance of 10.0% during the first half of 2023 and a total shareholder return of 5.4% due to the widening of discount to NAV at which PSH’s shares trade. Year-to-date, PSH’s NAV return through August 15, 2023, was 13.1% compared to 16.8% for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Pershing Square Holdings highlighted stocks like Restaurant Brands International Inc. (NYSE:QSR) in the first half 2023 investor letter. Headquartered in Toronto, Canada, Restaurant Brands International Inc. (NYSE:QSR) is a quick-service restaurant company. On September 1, 2023, Restaurant Brands International Inc. (NYSE:QSR) stock closed at $69.90 per share. One-month return of Restaurant Brands International Inc. (NYSE:QSR) was -4.85%, and its shares gained 18.03% of their value over the last 52 weeks. Restaurant Brands International Inc. (NYSE:QSR) has a market capitalization of $31.384 billion.
Pershing Square Holdings made the following comment about Restaurant Brands International Inc. (NYSE:QSR) in its first half 2023 investor letter:
“Restaurant Brands International Inc. (NYSE:QSR)’s franchised business model is a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from its four leading brands: Burger King, Tim Hortons, Popeyes, and Firehouse Subs. QSR’s various initiatives are leading to more consistent growth across each of its brands, as demonstrated by its first half results which were well above investors’ expectations with accelerating same-store sales trends each quarter. We believe that the addition of Patrick Doyle as Executive Chair of the company has already made a material contribution to the company’s operating trajectory.
Burger King’s international business, which represents more than half of the brand’s profits reported same-store sales, were more than 30% above pre-COVID levels, in-line with best-in-class peers. Management is focused on replicating Burger King’s international success in the U.S. through its “Reclaim the Flame” program. While the company is in the early stages of implementing the program, it is already seeing positive results, with domestic same-store sales reaching 11% above pre-COVID levels during the second quarter. With the majority of the funds earmarked for advertising and store refreshes yet to be deployed and a larger store remodeling effort now underway, the brand’s results should continue to improve.
Tim Hortons in Canada achieved same-store sales of 15% above pre-COVID levels due to improving traffic trends and new products in the afternoon food and cold beverage categories. Despite having nearly 70% market share in hot beverages and breakfast, Tim Hortons continues to gain share in each category…” (Click here to read the full text)
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Restaurant Brands International Inc. (NYSE:QSR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Restaurant Brands International Inc. (NYSE:QSR) at the end of second quarter which was 27 in the previous quarter.
We discussed Restaurant Brands International Inc. (NYSE:QSR) in another article and shared the list of oversold Canadian stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
