Pershing Square Capital Management, L.P. on Restaurant Brands International
Thesis
QSR is a high-quality business with significant long-term growth potential trading at a highly discounted valuation. Its largest businesses are outperforming peers, and it's simplifying to a capital-light model. Despite consistent 8% operating profit growth, the stock trades at 17x our estimate of NTM earnings, a discount of over 20% to its peers.
“QSR is a high-quality business with significant long-term growth potential that we believe trades at a highly discounted valuation... Trades at 17x our estimate of next twelve months’ earnings, more than a 20% discount to peers... On track to deliver 8% operating profit growth despite lower contribution from unit growth.”