The popular Canadian coffee and donut chain Tim Hortons has been a beloved brand since its founding in 1964. Over the years, The company has expanded its menu and reach, becoming a staple in Canadian communities and a growing presence in other countries.
For investors, the multinational coffeehouse and restaurant chain stock offers several compelling reasons to consider adding it to their portfolio. For instance, investors may appreciate its strong parent company, Restaurant Brands International (RBI), a multinational conglomerate that also owns Burger King and Popeyes Louisiana Kitchen.
Trading under the RBI brand on the New York Stock Exchange (NYSE: QSR) and the Toronto Stock Exchange (TSX: QSR), investors are curious as to where the stock can finish trading by the end of 2023. RBI’s broad portfolio of brands provides diversification and stability for investors. Additionally, RBI has been proactive in making strategic investments and acquisitions to help drive growth for all its brands, including Tim Hortons.
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QSR chart analysis
QSR is currently trading near its 52-week high, a good sign, indeed, because the S&P500 Index is not trading near new highs.
At the time of publication, QSR was trading at $67.52, up $3.02 (4.68%) year-to-date. In the last month, QSR has been trading in the $63.96 – $68.89 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
A combination of multiple trend lines and important moving averages in multiple time frames forms a support zone that exists ranging from $64.39 to $67.37. Resistance ranges from $67.65 to $68.48. Above this resistance zone may be a good entry point with a support zone below the current price at $67.37; a Stop Loss order could be placed below this zone.
Technical indicators on TradingView are mixed on the 1-day gauges, with the summary aligning with the ‘ strong buy’ sentiment at 16 while moving averages are for the ‘strong buy’ at 14. Oscillators are pointing at ‘neutral’ with 8.
On Wall Street, 28 analysts gave the stock a ‘buy’ consensus rating. Notably, 13 experts advocate a ‘strong buy,’ and one a ‘buy.’ Elsewhere, 13 recommend ‘hold,’ and one has opted for ‘sell.’
Based on analyst stock evaluations for QSR over the last three months, the average price forecast for the next year is $70.99; the target indicates a 5.14% upside from its current price. Interestingly, the highest price target over the next year is $80.31.
A consistent performer in the market
Taking everything into account and looking at the yearly performance, QSR did better than 84% of all other stocks. This is due to consistent performance in short- and longer-term time frames. QSR is showing a nice and steady performance compared to the overall market.
Its subsidiary Tim Hortons has maintained steady revenue and growth over the years. In 2020, the company reported $3.4 billion in revenue, a testament to its strong brand loyalty and market presence.
Of course, like any investment, there are some risks to consider regarding Tim Hortons stock. One potential concern is increased competition in the fast-food industry as more players enter the market and seek to capture market share. Additionally, the chain has faome criticism over its labor practices and treatment of workers, which could impact its reputation and financial performance over time.
Overall, however, Tim Hortons remains a solid and dependable brand with a loyal following and a track record of success. For investors looking for a reliable and consistent performer, QSR stock may be an appealing choice. With steady revenue and growth, a growing international presence, and a strong parent company, it looks well-positioned to weather any challenges that may arise in the fast-food industry.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
