First Watch Restaurant Group Inc (FWRG)vsRestaurant Brands International Inc (QSR)
FWRG
First Watch Restaurant Group Inc
$10.18
-0.59%
CONSUMER CYCLICAL · Cap: $763.78M
QSR
Restaurant Brands International Inc
$72.66
+1.16%
CONSUMER CYCLICAL · Cap: $34.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Restaurant Brands International Inc generates 654% more annual revenue ($9.59B vs $1.27B). QSR leads profitability with a 10.0% profit margin vs 1.4%. QSR trades at a lower P/E of 24.1x. QSR earns a higher WallStSmart Score of 68/100 (B-).
FWRG
Buy54
out of 100
Grade: C-
QSR
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-35.5%
Fair Value
$12.24
Current Price
$10.18
$2.06 premium
Margin of Safety
+25.4%
Fair Value
$94.75
Current Price
$72.66
$22.09 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 2290.0% YoY
17.3% revenue growth
Earnings expanding 100.0% YoY
Every $100 of equity generates 26 in profit
Strong operational efficiency at 25.9%
Areas to Watch
Smaller company, higher risk/reward
ROE of 2.8% — below average capital efficiency
1.4% margin — thin
Operating margin of 0.8%
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : FWRG
The strongest argument for FWRG centers on Price/Book, EPS Growth, Revenue Growth. Revenue growth of 17.3% 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 : FWRG
The primary concerns for FWRG are Market Cap, Return on Equity, Profit Margin. A P/E of 44.3x leaves little room for execution misses. Thin 1.4% 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
FWRG profiles as a growth stock while QSR is a value play — different risk/reward profiles.
FWRG carries more volatility with a beta of 1.06 — expect wider price swings.
FWRG is growing revenue faster at 17.3% — sustainability is the question.
QSR generates stronger free cash flow (169M), providing more financial flexibility.
Bottom Line
QSR scores higher overall (68/100 vs 54/100). Both earn "Strong Buy" and "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.
First Watch Restaurant Group Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
First Watch Restaurant Group Inc (FWRG) is a prominent player in the fast-casual dining sector, specializing in breakfast, brunch, and lunch, with a strong emphasis on health-conscious and high-quality culinary offerings. Founded in 1983, the company has cultivated a loyal customer base through an innovative and adaptable menu that reflects contemporary food trends. With a commitment to exceptional customer service and a unique dining experience, First Watch is strategically expanding its footprint in new markets, positioning itself for sustainable growth and increased shareholder value in a competitive landscape.
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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