This morning, Restaurant Brands International (QSR) appointed a new executive chairman – Patrick Doyle, the former CEO of Domino’s Pizza. The company owns an array of restaurant chains around the world – including Canadian favorite Tim Hortons, along with popular US chains like Burger King, Popeyes, and recently, Firehouse Subs. And as a result of this news, the stock has jumped up 7% so far.
This may leave you wondering if there’s an opportunity here as an investor. If you’re looking to trade QSR, we’ve uncovered 2 things you need to know to help you plan and execute your position. But first, let’s talk about the implications of this news for QSR as a company.
While the vast majority of the restaurant industry has suffered since the COVID-19 pandemic, Restaurant Brands International has more than weathered the storm – they’ve continued to report a profit on their bottom line. In fact, QSR has outperformed the top stocks on the NASDAQ in the past year – up 8.57% in the past 365 days. And just a few weeks ago, QSR reported impressive earnings where revenue climbed 13% and EPS grew 26%.
All of this begs the question – why shake things up internally? In looking at the press release directly from Restaurant Brands International, the board believes this is a key move that will unlock exceptional growth.
They feel that Doyle is one of the most impressive, successful CEOs in the restaurant industry. During his time at Dominos, Doyle doubled system-wide sales, reported 29 consecutive quarters of same-store sales growth, and created over $11 billion of shareholder value. These sorts of results are what made Doyle an attractive addition to an already thriving ecosystem at QSR.
The current CEO – Jose Cil – will work closely with Doyle to make the internal goals at QSR a reality. These goals include continued profitable growth in the long term, enhanced guest experience, and increased franchisee profitability – among many others.
Now – the question shifts toward traders. What should you do with QSR – is there an opportunity here to trade QSR? To give you a clear answer on what your next move should be with this stock, let’s take a look through the VectorVest stock analysis tool.
QSR Stock Has a Strong Positive Price Trend with Fair Upside Potential
The VectorVest system simplifies trading by granting you effortless insights into the most important factors of stock analysis. In just three easy-to-understand ratings, you can learn everything you need to know to make a calculated, emotionless decision about an opportunity. These ratings are relative value (RV), relative safety (RS), and relative timing (RT).
All three of these ratings are put on a scale of 0.00-2.00 making it easy to interpret them. Ratings over 1.00 indicate overperformance and vice versa. But the best part about leveraging the VectorVest system is the clear buy, sell, or hold recommendation you’re given based on these three ratings. If you want an answer as to what you should do with QSR stock, keep reading:
- Fair Upside Potential: This rating is calculated based on the long-term price appreciation potential of a stock – three years out. It’s a far superior indication of value as it takes into account risk, AAA bond rates, and more. As for QSR, the RV rating of 1.03 is fair.
- Poor Safety: An indicator of risk, the RS rating analyzes a company’s financial consistency and predictability, debt-to-equity ratio, and business longevity. As for QSR, the RS rating of 0.84 is poor.
- Very Good Timing: The price trend behind QSR is strong – and the very good RT rating of 1.39 reflects that. This is calculated based on the direction, dynamics, and magnitude of a stock’s price movement. The system analyzes price trend day over day, week over week, quarter over quarter, and year over year for a full picture.
All of these ratings work out to an overall VST rating of 1.13 – which is good. But does it indicate that now is the time to buy? Should you ride the trend? To get a clear answer on your next move with QSR, analyze stock free here!
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VectorVest advocates buying safe, undervalued stocks, rising in price. As for QSR, it is overvalued with fair upside potential and poor safety – but it does have very good timing.
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