Baupost Group discloses a $597.2 million position in QSR as the stock outperforms peers with strong comp sales growth.
Baupost Group, led by value investor Seth Klarman, has accumulated a $597,208,000 stake in Restaurant Brands International (QSR), making it the firm’s top holding. The investment comes as QSR’s stock has risen 5% year-to-date, supported by a forward P/E of 17 and strong quarterly results.
Restaurant Brands reported a 5.8% comparable sales increase in the U.S., driven by Burger King, while international comps rose 5.7%. The company’s franchise-heavy model delivers high margins, though thinner margins relative to peers and promotional pressures remain concerns. Consumer sentiment data suggests potential headwinds as 66% of those expecting economic deterioration plan to cut dining out.
Despite QSR’s resilience, some analysts argue AI-related stocks offer greater upside with lower downside risk.