Arcos Dorados Holdings Inc (ARCO)vsRestaurant Brands International Inc (QSR)
ARCO
Arcos Dorados Holdings Inc
$7.94
-0.87%
CONSUMER CYCLICAL · Cap: $1.70B
QSR
Restaurant Brands International Inc
$76.96
+0.61%
CONSUMER CYCLICAL · Cap: $35.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Restaurant Brands International Inc generates 95% more annual revenue ($9.70B vs $4.98B). QSR leads profitability with a 13.1% profit margin vs 5.2%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 72/100 (B).
ARCO
Strong Buy72
out of 100
Grade: B
QSR
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.2%
Fair Value
$11.71
Current Price
$7.94
$3.77 discount
Margin of Safety
+25.1%
Fair Value
$94.35
Current Price
$76.96
$17.39 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 99.3% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 33 in profit
Earnings expanding 151.2% YoY
Strong operational efficiency at 27.7%
Areas to Watch
Grey zone — moderate risk
Smaller company, higher risk/reward
5.2% margin — thin
Elevated debt levels
4.6% revenue growth
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 14.3% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bull Case : QSR
The strongest argument for QSR centers on Return on Equity, EPS Growth, Operating Margin. PEG of 1.24 suggests the stock is reasonably priced for its growth.
Bear Case : ARCO
The primary concerns for ARCO are Altman Z-Score, Market Cap, Profit Margin. Debt-to-equity of 2.65 is elevated, increasing financial risk.
Bear Case : QSR
The primary concerns for QSR are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.07 is elevated, increasing financial risk.
Key Dynamics to Monitor
QSR carries more volatility with a beta of 0.53 — expect wider price swings.
ARCO is growing revenue faster at 14.3% — sustainability is the question.
QSR generates stronger free cash flow (479M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (72/100 vs 68/100) and 14.3% revenue growth. QSR offers better value entry with a 25.1% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
Visit Website →Restaurant Brands International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Restaurant Brands International Inc. owns, operates and franchises quick-service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company is headquartered in Toronto, Canada.
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