WallStSmart

Dennys Corp (DENN)vsRestaurant Brands International Inc (QSR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 1997% more annual revenue ($9.59B vs $457.21M). QSR leads profitability with a 10.0% profit margin vs 2.2%. DENN appears more attractively valued with a PEG of 1.06. QSR earns a higher WallStSmart Score of 68/100 (B-).

DENN

Hold

41

out of 100

Grade: D

Growth: 3.3Profit: 5.0Value: 4.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.08

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

DENNOvervalued (-13.0%)

Margin of Safety

-13.0%

Fair Value

$5.53

Current Price

$6.25

$0.72 premium

UndervaluedFair: $5.53Overvalued
QSRUndervalued (+25.4%)

Margin of Safety

+25.4%

Fair Value

$94.75

Current Price

$72.66

$22.09 discount

UndervaluedFair: $94.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DENN1 strengths · Avg: 10.0/10
Debt/EquityHealth
-12.7410/10

Conservative balance sheet, low leverage

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

DENN4 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Market CapQuality
$321.87M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

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 : DENN

The strongest argument for DENN centers on Debt/Equity. PEG of 1.06 suggests the stock is reasonably priced for its growth.

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 : DENN

The primary concerns for DENN are P/E Ratio, Revenue Growth, Market Cap. Thin 2.2% margins leave little buffer for downturns.

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

DENN carries more volatility with a beta of 1.37 — expect wider price swings.

QSR is growing revenue faster at 7.3% — sustainability is the question.

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

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

QSR scores higher overall (68/100 vs 41/100). 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.

Dennys Corp

CONSUMER CYCLICAL · RESTAURANTS · USA

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. The company is headquartered in Spartanburg, South Carolina.

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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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