WallStSmart

Dutch Bros Inc (BROS)vsRestaurant Brands International Inc (QSR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 449% more annual revenue ($9.59B vs $1.75B). QSR leads profitability with a 10.0% profit margin vs 4.6%. QSR appears more attractively valued with a PEG of 1.28. QSR earns a higher WallStSmart Score of 68/100 (B-).

BROS

Hold

45

out of 100

Grade: D

Growth: 7.3Profit: 5.5Value: 2.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.07

QSR

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 6.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BROSSignificantly Overvalued (-76.9%)

Margin of Safety

-76.9%

Fair Value

$39.97

Current Price

$55.94

$15.97 premium

UndervaluedFair: $39.97Overvalued
QSRUndervalued (+25.3%)

Margin of Safety

+25.3%

Fair Value

$94.60

Current Price

$71.62

$22.98 discount

UndervaluedFair: $94.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BROS1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
30.8%10/10

Revenue surging 30.8% year-over-year

QSR3 strengths · Avg: 9.0/10
EPS GrowthGrowth
100.0%10/10

Earnings expanding 100.0% YoY

Return on EquityProfitability
25.5%9/10

Every $100 of equity generates 26 in profit

Operating MarginProfitability
25.9%8/10

Strong operational efficiency at 25.9%

Areas to Watch

BROS4 concerns · Avg: 3.0/10
Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

Debt/EquityHealth
1.673/10

Elevated debt levels

PEG RatioValuation
2.582/10

Expensive relative to growth rate

QSR2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.902/10

Distress zone — elevated risk

Debt/EquityHealth
4.191/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BROS

The strongest argument for BROS centers on Revenue Growth. Revenue growth of 30.8% demonstrates continued momentum.

Bull Case : QSR

The strongest argument for QSR centers on EPS Growth, Return on Equity, Operating Margin. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bear Case : BROS

The primary concerns for BROS are Price/Book, Profit Margin, Debt/Equity. A P/E of 103.0x leaves little room for execution misses. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Bear Case : QSR

The primary concerns for QSR are Altman Z-Score, Debt/Equity. Debt-to-equity of 4.19 is elevated, increasing financial risk.

Key Dynamics to Monitor

BROS profiles as a hypergrowth stock while QSR is a value play — different risk/reward profiles.

BROS carries more volatility with a beta of 2.37 — expect wider price swings.

BROS is growing revenue faster at 30.8% — sustainability is the question.

QSR generates stronger free cash flow (169M), providing more financial flexibility.

Bottom Line

QSR scores higher overall (68/100 vs 45/100). Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Dutch Bros Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Dutch Bros Inc. operates and franchises convenience stores. The company is headquartered in Grants Pass, Oregon.

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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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