Q: Do you see QSR as a buy now? If so, are there other stocks in the same sector that you like better? This would be for a medium to long term hold. Thanks.
5i Research Answer:
QSR is trading at 21.8x Forward P/E, and the company’s organic growth accelerated in recent quarters (perhaps showing the strength of the former DPZ’s CEO's influence). We think QSR has been mostly trading at a discount to peers, while growing on par or even faster than most other food franchisors, but this may change. QSR also started repurchasing shares (not at a huge scale). We would be okay to add some QSR at the current price. We also like DPZ (24.5x Forward P/E), MCD (22.5 Forward P/E).