Summary

• Lockdown restrictions to prevent the COVID-19 outbreak forced non-essential businesses to temporarily close their physical outlets.
• As the businesses suffered, some branched out on digital platforms to sell their products.
• Shares of Canada Goose Holdings Inc (TSX:GOOS) and Restaurant Brands International (TSX:QSR) have gained interest among investors.

The onset of the coronavirus pandemic drove people to tighten their budgets and stick to necessities, setting back non-essential businesses like restaurants and apparel manufacturers. However, companies like Canada Goose Holdings Inc (TSX:GOOS) and Restaurant Brands International Inc (TSX:QSR) adapted to the changing times and went on rebound from their market lows, drawing investors’ attention.

Both these shares rank well on the Toronto Stock Exchange’s (TSX’s) list of top performing consumer stocks and have high trading volumes.

Canada Goose Holdings Inc (TSX:GOOS)

Canada Goose Holdings Inc created a buzz among investors recently after its shares surged about 12 per cent in a week (since September 25). As winters approach and people seek an extra layer of protection for outdoor activities in these pandemic times, the clothing company may see a momentum in sales.

GOOS STOCK PERFORMANCE

Canada Goose faced a tough battle earlier this year as demand for its products, which primarily include parkas and winterwear, dropped amid the COVID-19 outbreak. Its shares plunged to a low of C$ 20.77 (March 17) during the market crash. But over the following six months, its scrips posted an impressive rebound, inching closer towards its pre-pandemic levels in February.

Canada Goose stock price records a nine per cent year-to-date (YTD) decline, but a growth of about 50 per cent in the last six months and nearly 37 per cent in three months.

Trending high on the TSX after its recent surge in share price, the Toronto-based company is currently outperforming its peers in the consumer goods sector.

GOOS FINANCIAL RESULTS

Impacted by the pandemic-driven economic contractions, Canada Goose saw its total revenue drop to C$ 26.1 million in its first quarter fiscal 2021 ending 28 June 2020. This was significantly lower from C$ 71.1 million-revenue in Q1 FY20. It also incurred a net loss of US$ 50.1 million and an operating loss of C$ 59.3 million in the latest quarter. Its adjusted EBIT was C$ 46.5 million in Q1 FY21, up from C$ 25.9 million in Q1 FY20.

Restaurant Brands International Inc (TSX:QSR)

Restaurants were forced to pull their shutters down when the pandemic-triggered lockdown was put into place in March. As a result, Restaurant Brands International Inc saw a sharp drop in demand and sales.

But the company quickly upped its game on the digital platform and rode on the rising trend of online orders and takeaways. With brands like Tim Hortons, Popeyes and Burger King under its name, Restaurant Brands International made quite a recovery in the last six months.

It has a market cap of C$ 23.2 billion and currently ranks high on the Top Price Performer list that ranks stocks from TSX and TSXV on the basis of maximum price gains in last 30 days.

QSR STOCK PERFORMANCE

As the markets tanked amid the pandemic, shares of Restaurant Brands International hit its lowest level this year at C$ 40.64 on March 19. It then made a steady recovery of about 89 per cent in the last six months since its March lows.

Its stocks post a seven per cent YTD decrease, but a nearly two per cent climb in the last three months.

QSR FINANCIAL RESULTS

Despite the lockdown, Restaurant Brands International reported a nearly 21 per cent system-wide sales growth in its second quarter ending 30 June 2020. However, its total revenue, at US$ 1 billion, saw a YoY decline in Q2 2020. It also recorded a net debt of US$ 11.3 billion in the latest quarter.

Restaurant Brands International pays a quarterly dividend of US$ 0.52, which currently has a dividend yield of 3.0 per cent.