The 2023 Canada Food Price Report, which was released by Dalhousie University in late 2022, projected that Canadians would be spending more on food this year. It forecasted a food price increase of 5% to 7% in 2023. Restaurants have also seen prices grow in this environment. Casual dining establishments were hit hard during the COVID-19 pandemic and the industry is still trying to find its footing as the economy has reopened.
Fast food restaurants were the exception among its peers during the pandemic and after. Restaurant Brands International (TSX:QSR), the Canadian fast food giant which owns top chains like Burger King, Tim Hortons, and Popeyes Louisiana Chicken. Shares of this TSX stock have climbed 9.3% month-over-month as of close on April 24. That has thrust the stock into the black in the year-to-date period in 2023.
This company unveiled its fourth quarter and full year fiscal 2022 earnings on February 14, 2023. RBI posted global system-wide sales of 12% in the fourth quarter and 13% for the full year. Meanwhile, it reported digital sales growth of 30% to $13.5 billion in fiscal 2022. RBI saw its net new units climb to 1,266 at the end of the 2022 fiscal year.
In fiscal 2022, RBI reported total revenues of $6.50 billion – up from $5.73 billion in fiscal 2021. Meanwhile, RBI posted adjusted EBITDA of $2.37 billion for the full year – up from $2.24 billion in the prior year. This stock is still on track for strong earnings growth going forward. Better yet, RBI offers a quarterly dividend of $0.55 per share. That represents a 3% yield.
