Q: Questions on QSR:
- Are falling margins on rising revenues a concern at all (maybe the cause of the drop in stock price)? Maybe continued digitalization helps margins in the future? I noticed that they had a Technology Officer hired in 2018.
- The current P/E looks good relative to historical, but is the somewhat high-ish P/S ratio normal for the restaurant industry?
- Regarding long term safety and quality, would you consider QSR in the top 10% of all Canadian stocks, and do you have any long term concerns?
- Any thoughts on their ambitious international expansion goals including China?
- Is the stock price more influenced by the direction of the TSX or NYSE or not necessarily either?
- Are falling margins on rising revenues a concern at all (maybe the cause of the drop in stock price)? Maybe continued digitalization helps margins in the future? I noticed that they had a Technology Officer hired in 2018.
- The current P/E looks good relative to historical, but is the somewhat high-ish P/S ratio normal for the restaurant industry?
- Regarding long term safety and quality, would you consider QSR in the top 10% of all Canadian stocks, and do you have any long term concerns?
- Any thoughts on their ambitious international expansion goals including China?
- Is the stock price more influenced by the direction of the TSX or NYSE or not necessarily either?
5i Research Answer:
Names in the restaurant industry and some companies that are considered “value...