Calling a growth company an "excellent value play" may be taking things a bit too far, however insofar as investors in Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR) are concerned, the extent to which the share price of Restaurant Brands has been impacted by recent events in the news is a news story in and of itself.
Most Canadian investors are well aware of the ongoing dispute between some Tim Horton’s franchisees and parent company Restaurant Brands. The ongoing dispute, centered on rising supply costs at a time when minimum wage hikes are taking effect, has resulted in a number of franchisees deciding to take matters into their own hands to highlight the perceived slight.
The media storm which has followed has resulted in localized boycotts of select Tim Horton’s locations and a whole lot of outrage from Canadians from coast to coast, with the blame for this dispute landing squarely on the lack of action coming from Restaurant Brands’ head office.
While it is perhaps true that Restaurant Brands could have (and likely will) do more to support its Tim Horton’s franchisees, the bigger story which appears to be lost with investors is the impressive performance the company, as a whole, has been able to muster, to the chagrin of those boycotting Tim Horton’s locations across Canada.
Taking a look at the company’s fundamentals, which now look much better than in the recent past, I am considering taking a position at these levels. I encourage investors looking for a quality growth company at a reasonable price to do the same.
Invest wisely, my friends.
