This Top Restaurant Stock Offers Good Value Right Now

Restaurant Brands International (TSX:QSR)(NYSE:QSR) was formed in 2014 and makes up three of the largest fast food chains in North America – Burger King, Tim Hortons, and Popeyes Louisiana Chicken. Its stock has climbed 6.4% year-over-year as of late afternoon trading on February 21. The company released its fourth quarter and full-year results for 2019 on February 10.

The big surprise was the huge performance from Popeyes, which had struggled in previous quarters but now appears to be on track. It posted same-store sales growth of 42% in Q4 2019, boosted by its Chicken Sandwich offering.

Burger King remained a strong performer, reporting 9% growth, while Tim Hortons lagged with same-store sales dropping 3% from the prior year.

RBI had a tall order to refocus its Tim Hortons brand in the quarters to come, something it acknowledged in its Q4 report. The company has said that it aims to leverage the power of its brand, especially in Canada, to fuel a comeback in 2020.

Some investors may have already seen the beginnings of its advertisement campaign which is putting a focus on the popularity of its coffee.

Shares of RBI last had a high price-to-earnings ratio of 47 and a price-to-book value of 7.9. Interestingly, this is fair value relative to its industry peers. The stock last paid out a quarterly dividend of $0.50 per share, which represents a 3.1% yield.