The Canadian restaurant industry passed through one of the most challenging periods in its history during the worst throes of the COVID-19 pandemic. Indeed, most restaurants were forced to close their doors for months on end. Fortunately, restaurants have been able to operate at full capacity over the last several months. Today, I want to look at two restaurant stocks that are worth watching this year.
MTY Food Group (TSX:MTY) is a Montreal-based company that franchises and operates quick-service, fast-casual, and casual dining restaurants in North America and around the world. Shares of this restaurant stock have dropped 10% in 2022 as of close on April 28. The stock is still up 1.6% from the previous year.
This company unveiled its fourth quarter and full year 2021 earnings on February 17, 2022. Total revenue rose to $146 million in Q4 2021 – up from $127 million in the fourth quarter of 2020. Meanwhile, for the full year, adjusted EBITDA rose to $168 million compared to $137 million in the prior year. Shares of this stock possess a favourable price-to-earnings ratio of 14.
Restaurant Brands International (TSX:QSR)(NYSE:QSR) is another top restaurant stock I’d look to snatch up in late April. It owns and operates top franchises like Burger King, Tim Hortons, and Popeyes. Its shares have dropped 10% from the previous year.
In 2021, total revenues rose to $5.73 billion compared to $4.96 billion in 2020. Meanwhile, adjusted EBITDA was reported at $2.24 billion – up from $1.86 billion in the prior year.
