Restaurant Brands is on Fire: Should You Buy Today?

Restaurant Brands International (TSX:QSR)(NYSE:QSR) is a Toronto-based quick service restaurant company that owns and operates the Burger King, Tim Horton’s, and Popeyes Louisiana Chicken brands. Shares of this top restaurant stock have surged 17% month-over-month as of close on November 21. The stock is now up 22% so far in 2022.

Fast food businesses came out of the COVID-19 pandemic in much better shape than casual in-room dining establishments. RBI brands remained operational with drive thru options and fast food businesses were quick to capitalize off partnerships with services like UberEats, SkipTheDishes, DoorDash, and others.

This company unveiled its third quarter fiscal 2022 earnings on November 3. RBI delivered total revenues of $1.72 billion – up from $1.49 billion in the third quarter of fiscal 2021. Each of its top brands delivered double-digit system-wide sales growth in the quarter. Burger King and Tim Horton’s delivered comparable sales growth of 10.3% and 9.8%, respectively. Moreover, adjusted EBITDA climbed to $642 million compared to $607 million in the third quarter of fiscal 2021.

In the year-to-date period, RBI posted adjusted EBITDA of $1.79 billion – up from $1.66 billion in the first nine months of the prior year. Meanwhile, it reported adjusted net income of $1.10 billion or $2.42 per diluted share compared to adjusted net income of $968 million or $2.08 per diluted share for the year-to-date period in fiscal 2021.

Shares of RBI are still trading in solid value territory compared to its industry peers. It is on track to deliver strong earnings growth going forward. Better yet, RBI offers a quarterly dividend of $0.54 per share. That represents a 3.2% yield.