Home / Business and Economy / Pershing Square Bets Big on Burger King's Future
Pershing Square Bets Big on Burger King's Future
19 Aug
Summary
- Pershing Square acquired a new stake in Restaurant Brands International.
- Restaurant Brands International's Burger King sales show strong growth.
- Pershing Square believes QSR stock is undervalued by the market.
Pershing Square Holdings, an investment firm focused on long-term growth, has added Restaurant Brands International (NYSE: QSR) to its portfolio. This addition was detailed in their second-quarter 2026 investor letter, released following the August 18, 2026, closing price of $76.56 for QSR shares.
The firm noted that while QSR's share price declined 1% in the second quarter, it remains up 8% year-to-date. Pershing Square highlighted the durability of QSR's growth and an improved capital return program. Notably, Burger King's same-store sales grew 7% in the first half of 2026, surpassing peers, and the International business saw 6% growth.
Pershing Square anticipates QSR will achieve 8% operating profit growth this year, aligning with long-term targets. They believe that sustained high-single-digit operating profit growth, coupled with share repurchases, could yield mid-teen total returns. Despite these positive indicators, QSR currently trades at 17 times earnings, a discount to its intrinsic value, presenting a potential opportunity for stock price appreciation.
