Bill Ackman's Long-Held QSR Stock: Why It's an Attractive Buy in August

Restaurant Brands International (QSR), a stock that has been a consistent fixture in Bill Ackman's Pershing Square Capital Management portfolio for over a decade, is currently standing out with its robust financial performance. The company, which owns global brands like Burger King, Tim Hortons, Popeyes, and Firehouse Subs, is considered an attractive option for investors, particularly due to its high dividend yield and capital-light franchised business model. Ackman describes QSR as a 'growing annuity' that is capital-light, providing steady and reliable returns with low overhead.

Restaurant Brands International announced strong results for the second quarter of 2026, surpassing analyst expectations. The company reported adjusted diluted earnings per share (EPS) of $1.07, exceeding the consensus estimate of $1.03. Revenue came in at $2.52 billion, in line with expectations. A key factor behind this successful performance was the significant improvement recorded by the Burger King brand in the U.S. Burger King U.S. comparable store sales grew by 8.5% in the quarter, demonstrating strong momentum contrary to a broader slowdown trend in the industry.

Across the company, consolidated system-wide sales increased by 6.4% year-over-year, while international comparable sales rose by 5.5%, and international system-wide sales saw a 10.7% increase. These figures affirm RBI's strong global position and growth potential. In the second quarter, Restaurant Brands International returned a total of $435 million in capital to shareholders through dividends and share repurchases. Furthermore, the company stated it remains on track to achieve its target of 8% organic adjusted operating income growth for 2026.

QSR's franchised business model allows the company to derive a significant portion of its revenue from royalty and franchise fees. This structure keeps operational costs low, generating high-margin and stable cash flow. This 'capital-light' approach is a crucial part of Ackman's investment thesis. The company has consistently increased its dividend annually for the past 10 years, offering investors a steady and growing return. Currently, QSR pays an annual dividend of $2.60 per share, with a dividend yield hovering around 3.49%, which is more than three times the average dividend yield of the S&P 500 index.

Market analysts also hold a positive outlook on Restaurant Brands International. The average rating from 27 analysts is 'Buy,' and the 12-month price target for the stock stands at $85.74, suggesting a 16% upside potential from the current price. The company's long-term targets for the 2024-2028 period include over 3% comparable sales growth, over 5% net restaurant growth, and over 8% system-wide sales growth. These objectives reinforce confidence in QSR's future performance and make it an attractive option for long-term investors.