Piper Jaffray Says It's Time To Buy Restaurant Brands

In a report published Monday, Piper Jaffray analyst Nicole Miller Regan stated that shares of

is a "top pick" with a potential 50 percent upside to share prices in less than five years. According to Regan, deploying the Burger King culture is crucial for a long-term success story. The analyst said that she is focused on talent (not credentials), performance (not status) and uncompromising dedication (not age) of the executive leadership team. "The culture extends overseas, and we expect the company to leverage its global franchise network when considering both Burger King, and now Tim Hortons, growth opportunities," Miller wrote. "As a result, development should accelerate to +HSD percent unit growth or better with a focus on international potential." Miller added that unit growth is the primary objective of the Burger King and Tim Hortons merger as it will allow management to leverage the master franchise/JV relationships they have built. Finally, the analyst concluded that the company's business model could drive "substantial" scale as a cash generating model as merging with Tim Hortons doubles EBITDA. As such, the company can demonstrate increased earnings while returning cash to shareholders through dividends and share repurchases over time. Shares are Overweight rated with a price target raised to $45 from a previous $44.