Pershing Square Holdings, an investment holding company, released its second quarter 2026 investor letter. A copy of the letter can be downloaded here. Pershing Square is an alternative asset manager that primarily manages capital in publicly traded investment vehicles, with 98% of its capital structure dedicated to such assets, including Howard Hughes Holdings. This capital permanency allows for long-term investments, fostering sustainable competitive advantages and yielding substantial market returns since 2018. The investment strategy focuses on acquiring high-quality companies at safe price points, anticipating significant annual EPS growth of 15% or more in the coming years. Additionally, reviewing the Fund’s top five holdings could help identify its best picks for 2026.
In its second-quarter 2026 investor letter, Pershing Square Holdings highlighted Restaurant Brands International Inc. (NYSE:QSR) as a newly added position. Restaurant Brands International Inc. (NYSE:QSR) is a leading fast food holding company that operates through Tim Hortons, Burger King, Popeyes Louisiana Kitchen, Firehouse Subs, International, and Restaurant Holdings. On August 18, 2026, Restaurant Brands International Inc. (NYSE:QSR) closed at $76.56 per share. The one-month return of Restaurant Brands International Inc. (NYSE:QSR) was 4.60% and its shares gained 20.09% over the past 52 weeks. Restaurant Brands International Inc. (NYSE:QSR) has a market capitalization of $34.8 billion.
Pershing Square Holdings stated the following regarding Restaurant Brands International Inc. (NYSE:QSR) in its Q2 2026 investor letter:
“Restaurant Brands International Inc.” (NYSE:QSR) share price declined 1% during the second quarter but remains up 8% year-to-date, as we believe investors are beginning to better appreciate the durability of its growth and its improved capital return program. QSR’s largest businesses continue to outperform peers, and the company is returning to its capital-light model. Notably, Burger King’s first half same-store sales growth of 7% is well above peers, reflecting the brand’s foundational improvements and recent elevation campaign. The International business has likewise outperformed, delivering first-half same-store sales growth of 6%. With this momentum, the company remains on track to deliver 8% operating profit growth this year, consistent with its longer-term targets. We believe sustained high-single-digit operating profit growth combined with appropriate financial leverage and an ongoing share repurchase program should allow for a mid teens total return before considering any potential for an increase in QSR’s P/E ratio.
Despite these favorable attributes, QSR trades at 17 times earnings, a material discount to peers and our view of intrinsic value. We expect the company’s stock price to increase as the company further expands its recently initiated share buyback program and delivers strong EPS growth over time.”
RBC Capital Boosts Restaurant Brands (QSR) Target on Continued Momentum
Restaurant Brands International Inc. (NYSE:QSR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 31 hedge fund portfolios held Restaurant Brands International Inc. (NYSE:QSR) at the end of the first quarter, compared to 36 in the previous quarter. While we acknowledge the potential of Restaurant Brands International Inc. (NYSE:QSR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Restaurant Brands International Inc. (NYSE:QSR) and shared Jim Cramer’s views on the stock. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
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