Restaurant Brands International (TSX:QSR)(NYSE:QSR) owns and operates three of some of the largest fast-food brands in North America.
Its stock has dropped 3.3% over the past week as of close on January 28. Shares are now hovering around a 52-week low. The question is, is it time to buy?
Its fourth-quarter and full-year results for fiscal 2019 are not due for release until February. In the third quarter, its Burger King and Popeyes chains reported strong results. Burger King posted its highest quarterly comparable sales growth since 2015 and Popeyes reported its strongest comparable sales growth in nearly 20 years.
Unfortunately, Tim Hortons continued to be a drag on earnings. System-wide sales growth fell 0.1% year-over-year in the third quarter at Tim Hortons, and comparable sales fell 1.4% from the prior year.
RBI saw revenues rise to $1.45 billion in Q3 2019 compared to $1.37 billion in the prior year. Adjusted net income increased to $337 million or $0.72 per share over $297 million or $0.63 per share in Q3 2018. The company reported adjusted EBITDA of $602 million compared to $571 million in the previous year
So, is RBI a buy today? The stock last possessed a price-to-earnings ratio of 25 and a price-to-book value of 7.9. These technicals indicate that RBI is still overpriced, even close to its 52-week low.
The stock last paid out a quarterly dividend of $0.5 per share, which represents a 3.1% yield. RBI stock does not offer the value or the income that makes it worth buying on the dip in late January.
