Restaurant Brands International Inc (TSX:QSR)(NYSE:QSR) is the company behind some iconic restaurant brands, including Tim Hortons, Burger King, and Popeyes. It’s one of the best fast foods stocks to invest in. On top of having a strong and diverse business, it also offers an attractive yield of around 4% right now.
This year, the stock hasn’t been doing well, however, as it has declined by around 6%. As consumers have been cutting back on spending due to concerning economic conditions and rising restaurant prices, investors haven’t been bullish on these stocks of late. With its decline in value, Restaurant Brands’ stock is currently trading near its 52-week low.
In August, the company reported system-wide sales growth of 5.3% for the period ending June 30, as Restaurant Brands continues to do relatively well amid challenging economic conditions. However, its operating income declined by 27% to $483 million.
It wasn’t a great performance but the stock does trade at a discount – a forward price-to-earnings multiple of only 11. It’s not an expensive stock to own, especially given its high yield and the terrific brands that it owns in its portfolio.
Although the stock might not necessarily take off in the near future, this can be a good dividend stock to put in your portfolio over the long term. Its payout remains safe as Restaurant Brands has generated nearly $1.4 billion in free cash flow over the trailing 12 months, which is more than the $1.1 billion it paid out in dividends over that period.
