Restaurants took a huge hit in 2020 due to the COVID-19 pandemic. Fortunately, there has been some optimism injected into this sector as the economy has reopened across North America. Today, I want to look at two restaurant stocks that are worth snatching up in September.
Restaurant Brands International (TSX:QSR)(NYSE:QSR) is an Oakville-based company that owns, operates, and franchises quick service restaurants under the Tim Horton’s, Burger King, and Popeyes brands. Its shares have climbed 7.3% in 2021 as of early afternoon trading on August 31.
The company unveiled its first quarter 2021 results on July 30. RBI delivered system-wide sales growth of 4% while digital sales in home markets were up almost 60% in the year-over-year period. Each of its top brands posted positive system-wide sales growth in the quarter. Meanwhile, adjusted EBITDA was reported at $577 million – up from $358 million in the prior year.
RBI last declared a quarterly dividend of $0.53 per common share. That represents a 3.2% yield.
Recipe Unlimited (TSX:RECP) is a Vaughan-based company that operates franchises like Swiss Chalet, Harvey’s, and The Keg. Its shares have climbed 28% in the year-to-date period. The stock is up over 100% compared to the previous year.
Total system sales increased 44% from the prior year in Q2 2021. Meanwhile, it posted e-commerce system sales growth of 28%. Operating EBITDA nearly doubled to $30.4 million. Shares of Recipe Unlimited possess a favourable P/E ratio of 19. This is still a stock worth owning today.
