Bill Ackman‘s Pershing Square Capital Management is without a doubt one of the best. Although Pershing Square’s returns haven’t been as great in recent years, the fund’s stock commentary analysis has nevertheless been top notch. Due to Pershing Square’s analysis, we take a look at how the fund views Restaurant Brands International Inc (NYSE:QSR).

According to Pershing Square’s Q3 2017 letter, the fund still likes the fast food stock, given the company’s ‘high-quality, capital-light, growing annuity’ business model that generates considerable high margin royalty fees from Tim Hortons, Burger King, and Popeyes. Bill Ackman’s fund thinks the company has good management, and has opportunity to grow ‘that requires virtually no incremental capital’. The fund also notes that Restaurant Brands International Inc.'s operating strategy is scalable, which could provide additional opportunities for value-creating M&A.

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In terms of its earnings, Pershing notes that Restaurant Brands International Inc. reported earnings growth for Q3. Although there was some softness in the Tim Hortons division, performance at Burger King ‘was particularly impressive’ as same store sales grew 3.6%. Tim Horton same store sales were relatively unchanged.

Ackman concludes the Q3 investor letter comment on Restaurant Brands International Inc. with the following comment:

We believe that Restaurant Brands remains a compelling value at 21 times our estimate of 2018 free cash flow per share in light of our belief that the company can grow free cash per share in the mid-to-high teens for the foreseeable future.

In terms of its performance thus far, Restaurant Brands International Inc. ’s stock has done relatively well, rallying around 32% year-to-date and by around 33% over the past twelve months. The S&P by contrast has rallied 18.3% year-to-date and by around 20.44% in the last four quarters. Long investors of the company hope that management will continue to execute.