Investment Q&A

Q: I had been eyeing both of these to add to a TFSA, and they have been rising steadily, especially Couche-Tarde after earnings. Which do you prefer for TFSA for 25 year old? Or, do I add a little of both? Suggested buy price? Thank you for your great work!!

Q: Good afternoon Troops. 65y/o retiree looking to reduce my holdings and consolidate into an easier to manage portfolio. I have chosen six ETFs to give me some international and US exposure, some using covered calls for income. For the Canadian side of my portfolio I have chosen these ten stocks that would be my core holdings going forward. Can you please comment on this strategy and if these stocks are suitable for my situation. Cheers.

Q: Hello everyone,

I have to execute some tax loss selling, and I would appreciate it, if you would rank the following securities from a sell order perspective:

- Saputo, (SAP), Richelieu Hardware (RCH), Restaurant Brands (QSR), Boyd Group (BYD), and Emera (EMA)

Cheers.

PK

Q: Good Afternoon. I'm looking at consolidating my low weight stocks. Out of QSR, RBA and ATD, which two would you sell and which one would you keep? Cheers.

Q: Good morning I would appreciate your opinion on QSR latest results. I just finished reading through and although growth seems slow it was heading in the right direction. I am wondering your opinion on the different segments (brands) and their push into international markets and BK revamp. Do you think this could be the start of expansion and the bet that Doyle can turn this business around like Dominos? I have been a long time holder and recently been wondering if i should sell and move on or stay the course. Thanks

Q: I am trying to understand the attractiveness of QSR as an investment, having already executed a sell decision...owners of Burger King; Tim Hortons; Popeyes; Firehouse Subs; Carrols Restaurant Group. I never found their "story" very compelling, yet was talked into it a number of years ago by an advisor.

They've never really performed in my view other than provide a modest dividend. Mr. Doyle is nearing the end of his second year leading a turnaround, yet it seems to me not much is turning around. I find it equally puzzling that this stock remains on a lot of recommendation lists and has for years.

I would like your perspective on the stock, its performance to date and where you see it headed over the next 3-5 years.

Thanks as always,

Dave

Q: I have some money to deploy in my partner's TFSA and RRSP, and they currently have the following holdings. As we move towards retirement, the objective is to hold more income and defensive stocks. What three might you add today, and what three would sell from this list? Thank you for your insights.

Q: Hello, I learned recently that Bill Ackman has a position in QSR. If so, can you confirm how much of QSR he owns and when he acquired this position. Could we see this go the way of CP Rail previously where he pushed for changes and the stock appreciated significantly. Also, what are your thoughts on this company. Do you feel it is undervalued currently and will eventually reward those patient investors who buy now and hold for a longer duration? Debt seems somewhat high and should this be a concern? Thanks for the great service that you provide.

Q: What would you say to switching part of a QSR holding into CMG, reasons for or against.
Thanks Matthew

Q: Do you have a strong preference between these 2 today?

Thanks.

Q: Hi Peter and the 5i Team,

The recent performance of QSR has been quite lacklustre to say the least. If you were buying today, in what order would you buy QSR and its major Canadian peers (AW.UN, MTY, ans BPF.UN)?

Thanks for your valuable insight.

Q: Hello I have owned QSR for a long time collecting the div and reinvesting I am still a believer in the Patrick Doyle story from when he helped Dominos Pizza. I do like most of their offerings with Firehouse subs and Popeyes quickly popping up everywhere and there is always a line up at Tim's . Do you see value in this name? What is dragging on it if anything. Do you have faith that Patrick Doyle can replicate his past successes.

As always thanks for the great service

Q: I have half positions of these three stocks: QSR, PBH, & LNF. PBH is underwater. Are these good stocks to own long term? They haven't really done much in the last few years. Or on this pullback, make them full positions for their div and possible future growth? Do you have other favourites in Consumer stocks? YOUR THOUGHTS PLEASE. Thanks.

Q: Hi,

After A&W’s recent conversion into a Corporation do you feel they could be a candidate for a takeover? Is it possible that this conversion to a corporation, which would simplify the structure, was done make them more desirable to an acquiring company? Two obvious Canadian suitors may be QSR and Fairfax which owns many casual dining restaurants under its Recipe Unlimited division. Looking forward to your comments. Thanks.

Q: The noted stocks are all very weak right now. I suppose on fears of recession and/or tariffs and/or specific company performance. Could you please rank these for potential to rebound in 2025? Any particularly attractive or unattractive right now to purchase with a brief rationale? Thanks!

Q: These 9 stocks were approximately equally weighted in unregistered dividend account before NPI and BCE took a big dive. The overall yield of the account is around 4.8% which I have been happy with, but the loss of capital in the 2 mentioned is troubling.

Objective of the account is to generate retirement dividend income for the next 5 to 10 years.
Other accounts provide pretty decent diversification by sector / geography / growth etc.


Question 1. Should I take the loss on these two and redeploy into the other holdings?

Question 2. Any glaring omissions in this account which you think I should add in here?

Q: Questions on QSR:

- Are falling margins on rising revenues a concern at all (maybe the cause of the drop in stock price)? Maybe continued digitalization helps margins in the future? I noticed that they had a Technology Officer hired in 2018.

- The current P/E looks good relative to historical, but is the somewhat high-ish P/S ratio normal for the restaurant industry?

- Regarding long term safety and quality, would you consider QSR in the top 10% of all Canadian stocks, and do you have any long term concerns?

- Any thoughts on their ambitious international expansion goals including China?

- Is the stock price more influenced by the direction of the TSX or NYSE or not necessarily either?

Q: I'm asking for 5i's opinion on your current (5) best asset-light company ideas - Canadian and / or American - that have:

- financial stability

- strong competitive position today and into the future

- in a sector that is not threatened by disruption

- attractive valuation at today's prices

Hopefully not a lot to ask. Thanks for your service.

Q: Operating metrics (FCF, ROE, margins, etc.) for PAYX seem quite strong - it seems to be an asset-light business, dividend grower and compounder. However, it's at the same price as 3 years ago and has been underperforming the S&P for the same period. Am I missing something? What are your thoughts for PAYX and is it worthwhile for initiating a position at some level you would suggest?

Q: Pizza Pizza and Boston Pizza's price history and dividend payouts seem to have been reasonably stable for more than one year. I know you prefer AW.UN but are the other two ok for income? QSR looks too pricey and has a low dividend. What do you recommend?