Q: QSR has been a disappointing name. I understand you like the new leadership.What upcoming catalyst’s do you envision for this position …..or should we just sell and move on.?
5i Research Answer:
We think QSR is trading quite cheap relative to other restaurant franchisors such as MCD, DPZ, YUM, etc. QSR recently announced a share repurchase plan of $1B to take advantage of the share price weakness. In addition, with accelerated revenue growth in the double-digit range, we think the market will (should) eventually rerate the multiple for the company. We think QSR is a hold for now.