First Watch Restaurant Group Inc (FWRG)vsRestaurant Brands International Inc (QSR)
FWRG
First Watch Restaurant Group Inc
$11.55
+4.15%
CONSUMER CYCLICAL · Cap: $762.77M
QSR
Restaurant Brands International Inc
$74.52
+0.72%
CONSUMER CYCLICAL · Cap: $33.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Restaurant Brands International Inc generates 636% more annual revenue ($9.70B vs $1.32B). QSR leads profitability with a 13.1% profit margin vs 1.4%. QSR trades at a lower P/E of 18.6x. QSR earns a higher WallStSmart Score of 70/100 (B).
FWRG
Buy52
out of 100
Grade: C-
QSR
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+1.4%
Fair Value
$16.82
Current Price
$11.55
$5.27 discount
Margin of Safety
+37.9%
Fair Value
$113.86
Current Price
$74.52
$39.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
15.2% revenue growth
Earnings expanding 26.4% YoY
Every $100 of equity generates 33 in profit
Earnings expanding 151.2% YoY
Growing faster than its price suggests
Strong operational efficiency at 27.7%
Areas to Watch
Smaller company, higher risk/reward
ROE of 2.8% — below average capital efficiency
1.4% margin — thin
Operating margin of 2.5%
4.6% revenue growth
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : FWRG
The strongest argument for FWRG centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 15.2% demonstrates continued momentum.
Bull Case : QSR
The strongest argument for QSR centers on Return on Equity, EPS Growth, PEG Ratio. PEG of 0.88 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 44.1x leaves little room for execution misses. Debt-to-equity of 1.69 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
FWRG profiles as a growth stock while QSR is a value play — different risk/reward profiles.
FWRG carries more volatility with a beta of 1.05 — expect wider price swings.
FWRG is growing revenue faster at 15.2% — sustainability is the question.
QSR generates stronger free cash flow (479M), providing more financial flexibility.
Bottom Line
QSR scores higher overall (70/100 vs 52/100). 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 fast-casual dining chain specializing in breakfast, brunch, and lunch, renowned for its health-conscious menu and high-quality ingredients. Founded in 1983, the company has cultivated a loyal customer base by innovatively adapting its menu to reflect contemporary culinary trends while prioritizing exceptional service. With a strategic focus on expanding its footprint in both existing and new markets, First Watch is well-positioned for sustained growth, making it a compelling investment opportunity in the dynamic dining sector.
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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