If you look at the historical performance of the stock market over the years, September has been a time of great strife for many investors. There is just something about this time of year that sees investors off-load shares due to panic-riddled frenzies. Even now, Warren Buffett’s firm has recently been selling a lot of shares to align with the trend.
Considering the general trend, it might not seem like an ideal time to become a net buyer instead of a seller as a stock market investor. However, basing investment decisions purely on the time of year might be too arbitrary for wise investors.
This year is different for the stock market. In light of the recent interest rate cuts by the Bank of Canada, the stock market is rallying, as reflected by the Canadian benchmark index. As of this writing, the S&P/TSX Composite Index is hovering near its new all-time highs. Midway through September, the market seems to be moving smoothly through this year.
Avoiding buying right now because of something arbitrary might not be a good move. While there is volatility on the horizon with elections in November, it might be a good time to buy stocks you find undervalued before the Santa Claus rally in December.
Today, we will discuss one of the best bargains on the TSX right now. Despite a correction being in the cards for the stock, it might be a good idea to buy the dip and hold on to see substantial returns after the dust settles in case a pullback happens.
Restaurant Brands International
Restaurant Brands International (TSX:QSR) is a $44.63 billion market capitalization giant in the international restaurant industry.
Headquartered in Toronto, Restaurant Brands International has several well-known and well-loved brands under its belt, including Burger King, Tim Hortons, Firehouse Subs, and Popeyes Louisiana Kitchen. Being a big name in the quick-serve restaurant business, the company has seen its earnings improve steadily over the years.
Most fast-food stocks have not seen a good performance in the last few quarters. However, its less-than-impressive sales growth figures in recent quarters might not be a negative trend. It derives revenue from company-owned restaurants, royalty fees, and lease income from its franchised stores worldwide.
Restaurant Brands International has been investing its money in all the right areas. The company plans to increase its store count from 31,000 last year to 40,000 by 2028. It also plans to remodel 600 of its recently acquired locations and accelerate the expansion of Firehouse Subs throughout Canada and the US.
Besides its expansion plans, the company will likely double down on digital innovation. From digital kiosks to mobile app ordering and more, these efforts can further boost its performance on the stock market.
The recently announced rate cuts can spur economic activity across the board, increasing consumer spending and relieving the pressure by reducing borrowing costs. It can help the company’s bid to expand its presence and improve its operational efficiency in the coming years.
Foolish takeaway
As of this writing, Restaurant Brands International stock trades for $94.99 per share. Down by 15.27% from its 52-week high, QSR stock might be too attractively priced to ignore right now.
