The London Company, an investment management company, released its first-quarter 2026 investor letter for its “The London Company Income Equity Strategy”. A copy of the letter is available to download here. In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. The year began positively on a broad rally, but sentiment reversed sharply in March due to the Iran conflict. Market leadership shifted to a narrow, commodity-focused sector benefiting energy, agriculture, and hard assets. Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI-related concerns in software. Sector dispersion was extreme; Energy surged over 35%, while Tech dropped over 9%. The London Company Income Equity portfolio returned 4.4% (4.2% net) this quarter, outperforming the 2.1% rise in the Russell 1000 Value Index, supported by stock selection and sector exposure. In this environment, the portfolio is positioned to participate in market upside, offering diversification and quality. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, The London Company Income Equity Strategy 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 June 9, 2026, Restaurant Brands International Inc. (NYSE:QSR) closed at $72.67 per share. One-month return of Restaurant Brands International Inc. (NYSE:QSR) was -4.93%, and its shares gained 7.47% over the past 52 weeks. Restaurant Brands International Inc. (NYSE:QSR) has a market capitalization of $33.16 billion.
The London Company Income Equity Strategy stated the following regarding Restaurant Brands International Inc. (NYSE:QSR) in its Q1 2026 investor letter:
“Initiated: Restaurant Brands International Inc. (NYSE:QSR) – QSR is one of the world’s largest restaurant franchisors operating Burger King, Tim Hortons, Popeyes, and Firehouse Subs. The company earns steady royalty and fee income from thousands of franchise locations worldwide, producing naturally high profit margins and strong, predictable cash flow. QSR trades at a meaningful discount to peers like McDonald’s and Yum! Brands, largely due to concerns around Burger King’s U.S. performance. However, management has laid out a clear plan to simplify the business and improve restaurant quality, targeting a nearly fully franchised model by 2028. We see this as a classic “self-help” story where the company’s own actions drive improvement— not reliance on a strong economy. With durable global demand, growing international presence, an attractive dividend, and a clear path to closing the valuation gap with peers, we believe QSR is a strong long term investment and fits well within our Quality-at-a Reasonable-Price framework.”
