The Implied Growth Rate For Restaurant Brands International Is Too Conservative


QSR franchises Burger King, Tim Hortons and Popeye's restaurants.
This is a great business. Franchisees deploy the capex, QSR rips the benefits.
QSR forces franchisees to open new restaurants, those not paying for growth.
The implied growth rate of 1.4% seems conservative, I think 1.8% is more realistic. This translates to a 16x multiple and a stock price of $78.
In the meantime, collect the 3% dividend yield.
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