The Globe and Mail reports in its Saturday edition that columnist John Heinzl is adding to his holding of shares in Restaurant Brands International which, at $90.25, yields 3.8 per cent. He says RBI is one of Canada's favourite summer road-trip traditions: stopping at Tim Hortons to use the restroom. While you are there, might as well order a coffee and whatever grilled panini whatchamacallit the chain is hawking this week. In the quarter ended June 30, same-store sales at Tims rose 3.4 per cent, pacing parent Restaurant Brands -- which also owns Burger King and Popeyes Louisiana Kitchen -- to a systemwide sales increase of 5.3 per cent, including new restaurants. Yet the stock fell as investors focused on Burger King's disappointing U.S. same-store sales growth of 1.5 per cent, which reflected a weakening U.S. consumer. Mr. Heinzl adds that Restaurant Brands' stock has usually found support around current levels in recent years, which suggests that the downside from here may be limited. Regardless of what happens in the short term, the columnist is confident that Restaurant Brands' sales, earnings and dividends will continue to rise, which is why he is adding 15 shares to the model portfolio, for a total of 105.
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