Restaurant stocks are having a dismal run, and names like Domino’s Pizza (DPZ), McDonald’s (MCD), Wendy’s (WEN), and Restaurant Brands International (QSR) are down double digits over the last month. Most restaurant stocks pay fat dividends as companies share their cash largesse with investors, given the industry's near-mature nature.
Specifically, QSR has a dividend yield of 3.5%, and while that might not look as tempting compared with the nearly 5% yield the U.S. 10-year Treasury offers, it's more than three times the S&P 500 Index’s ($SPX) yield. Bill Ackman’s Pershing Square Holdings (PSHZF) is QSR's second-biggest shareholder, holding about a 7.4% stake in the company. In my previous article, I noted that QSR stock wasn’t a compelling buy as much of the positives were already baked into the price. With the stock now down sharply from those levels, let’s explore if it is a “Buy” now.
