Warren Buffett and I have two things in common when it comes to investing: we focus on what we know, and one thing we know is restaurants.
And although the quick service restaurant sector has been pummeled for almost two years now, one company’s earnings report this week suggests we may be in for a bit of a rebound in 2026.
Let’s talk about 1 big dividend stock I’m adding heading into the new year with hopes of a turnaround.
Coffee, burgers, and dividends
If you live in Canada like I do, you’ll know there’s a Tim Hortons on every corner.
Sometimes two on the same corner!
And while Restaurant Brands International’s (ticker: QSR) best-known restaurant is probably Burger King, it’s Tim Hortons that’s really driving bus.
Best known for coffee, improvements to their food menu have actually served as the catalyst for improved sales.
As CNBC reported recently:
“Tim Hortons reported same-store sales growth of 4.2%. The Canadian coffee chain has been leaning more into food offerings to drive sales and traffic at its restaurants. Executives also said an improved iced latte is driving sales of cold drinks, which grew 10% in the quarter.”
Given how many Timmies flatbread pizzas I’ve been ordering lately, I can vouch for that.
Having said that, Burger King also had a great quarter with a 3.1% increase in same-store sales even as the company executives decided to stay out of the recent value menu wars meant to revive the moribund quick-service restaurant business.
QSR is down 3.9% over the past year at the time of this writing and pays a dividend yield of 3.70%.
I’m adding here.
Dividends in 2026
The selloff in quick-service restaurants may not be over yet, but the way I invest, I just don’t care.
I just keep adding to my positions as long as I spend money with the company … and given how ubiquitous Tim Hortons is in my neck of the woods, I can’t see dropping the resto completely for years to come.
Disclaimer: I am not a financial advisor — I’m simply giving my opinion on stocks I personally own. This article should not be construed as financial advice or a suggestion to buy or sell the securities mentioned herein.