Alphanso’s AI Stock Research picked QSR as one of the top stocks of the year.
Alphanso Rating: 9.8/10
QSR (Restaurant Brands International Inc) is expected to do very well due to strong growth in sales and improving North America consumer spending which will push the stock higher.
Fundamental Metrics:
- Free cash flow yield of 5.2% indicates the company’s ability to generate cash flows making it a very sustainable business
- Revenue growth of 8.6% vs sector median of 6.7%, shows their product competitiveness.
- EBITDA margin growth of 3.4% vs sector median of -0.75% suggests strong pricing power and economies of scale.
- The ROE of 41% indicates that its management is highly efficient and shareholder-friendly.
- On Tuesday, they reported double-digit same-store sales growth at Burger King and Tim Hortons (>60% revenue for QSR), for its second quarter.
Technical Metrics:
Based on the Alphanso model, the stock is trading below the expected channel (range) of $82.7 – $87.6
