Pershing Square Holdings, an investment holding company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. During the year, the fund generated a NAV performance of 26.7% versus 26.3% for the principal benchmark the S&P 500 index. In 2023, the portfolio companies performed exceptionally well, significantly increasing their stock prices. Portfolio companies sustained growth in revenue, profitability, and shareholder value despite two conflicts and a prolonged increase in interest rates. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Pershing Square Holdings featured stocks like Restaurant Brands International Inc. (NYSE:QSR) in the fourth quarter 2023 investor letter. Headquartered in Toronto, Canada, Restaurant Brands International Inc. (NYSE:QSR) is a quick-service restaurant company. On March 26, 2024, Restaurant Brands International Inc. (NYSE:QSR) stock closed at $78.65 per share. One-month return of Restaurant Brands International Inc. (NYSE:QSR) was 2.85%, and its shares gained 21.56% of their value over the last 52 weeks. Restaurant Brands International Inc. (NYSE:QSR) has a market capitalization of $35.15 billion.
Pershing Square Holdings stated the following regarding Restaurant Brands International Inc. (NYSE:QSR) in its fourth quarter 2023 investor letter:
“Restaurant Brands International Inc.’s (NYSE:QSR) 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. Since Patrick Doyle joined as Executive Chairman in November 2022, QSR has announced various strategic initiatives and begun providing investors with more details about the business. Coupled with significant investments over the last few years to drive more consistent growth across each of its brands, QSR has entered a new era of what we believe will be consistently stronger performance.
In February, the company hosted an investor day and introduced a five-year growth outlook comprising 3%+ annual comparable sales and 5%+ net restaurant growth, driving 8%+ system-wide sales and operating income growth. We believe the company can outperform these targets, as expenses will grow slower than sales while it laps its investments at Burger King in the U.S. The company also updated investors on franchisee profitability with significant improvements at each of its brands, including nearly 50% increases in franchise profitability at Burger King in the U.S. and 30% at Tim Hortons in Canada…” (Click here to read the full text)
A close-up of a hamburger, french fries, and a soft drink, representing the fast food chain.
Restaurant Brands International Inc. (NYSE:QSR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Restaurant Brands International Inc. (NYSE:QSR) was held by 27 hedge fund portfolios, compared to 29 in the previous quarter, according to our database.
We discussed Restaurant Brands International Inc. (NYSE:QSR) in another article and shared the list of best coffee stocks to invest in. In addition, please check out our hedge fund investor letters Q4 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.
