The Tim Hortons parent just made Josh Brown's best stocks list and is breaking out
Key Points
- QSR operates 33,000 restaurants across 125 markets with 95% franchised, targeting 1,800 net new restaurants annually by 2028, primarily international locations that carry higher royalty rates
- The company expects strong growth for the upcoming May quarter: 6% revenue growth, 35% EBIT growth, and 10% EPS growth year-over-year, driven by international expansion
- Technical setup shows stock breaking out toward mid-to-high $80s target after consolidating below $75 resistance for a year, with support at 200-day moving average around $68
AI Summary
Summary: Restaurant Brands International (QSR) Breaks Out on Josh Brown's Best Stocks List
Key Investment Thesis:
Restaurant Brands International (QSR), parent company of Tim Hortons, Burger King, Popeye's, and Firehouse Subs, has been added to Josh Brown's "Best Stocks in the Market" list as it breaks through technical resistance at $75, targeting the low $80s.
Leadership and Strategy:
CEO Patrick Doyle, who previously transformed Domino's Pizza stock from $8 to $250 (2010-2018), is implementing his proven "Reclaim the Flame" playbook at Burger King. The strategy focuses on remodels, digital ordering, marketing, and franchisee support. Early results show U.S. same-store sales turning positive and improving franchisee profitability.
Company Portfolio:
QSR operates 33,000 restaurants across 125 markets, with 95%+ franchised locations. The portfolio emphasizes value: Tim Hortons offers Timbits for $1.49, Burger King's Whopper Wednesdays feature $3.99 burgers. Firehouse Subs shows strongest growth at 7.7% net restaurant expansion, while Popeye's is underperforming with 3% comparable sales decline.
Financial Outlook:
Expected May quarter results: 6% revenue growth, 35% EBIT growth, and 10% EPS growth year-over-year. International expansion is key, with six $1 billion markets outside the U.S. Target: 1,800 net new restaurants annually by 2028, primarily international locations that command higher royalty rates.
Technical Analysis:
Stock broke resistance at $75 after consolidating for a year, with support at the 200-day moving average around $68. RSI at 60 indicates positive momentum without divergence.
Major Holders:
Pershing Square (Bill Ackman) maintains concentrated position since 2012 IPO; 3G Capital is controlling shareholder.
Risk Management:
Traders should use $68 (200-day moving average) as stop-loss on weekly
Model Analysis Breakdown
| Model | Sentiment | Confidence |
|---|---|---|
| Claude 4.5 Haiku | Bullish | 75% |
| Gemini 2.5 Flash | Bullish | 90% |
| Consensus | Bullish | 82% |