El Pollo Loco Holdings Inc (LOCO)vsRestaurant Brands International Inc (QSR)
LOCO
El Pollo Loco Holdings Inc
$15.18
+0.80%
CONSUMER CYCLICAL · Cap: $456.83M
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 1837% more annual revenue ($9.70B vs $500.79M). QSR leads profitability with a 13.1% profit margin vs 7.0%. LOCO appears more attractively valued with a PEG of 1.16. QSR earns a higher WallStSmart Score of 68/100 (B-).
LOCO
Buy65
out of 100
Grade: C+
QSR
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.3%
Fair Value
$13.43
Current Price
$15.18
$1.75 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
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Attractively priced relative to earnings
Every $100 of equity generates 33 in profit
Earnings expanding 151.2% YoY
Strong operational efficiency at 27.7%
Areas to Watch
3.0% revenue growth
Distress zone — elevated risk
Smaller company, higher risk/reward
7.0% margin — thin
4.6% revenue growth
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : LOCO
The strongest argument for LOCO centers on Price/Book, EPS Growth, P/E Ratio. PEG of 1.16 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 : LOCO
The primary concerns for LOCO are Revenue Growth, Altman Z-Score, Market Cap.
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
LOCO carries more volatility with a beta of 0.69 — expect wider price swings.
QSR is growing revenue faster at 4.6% — 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
QSR scores higher overall (68/100 vs 65/100). LOCO offers better value entry with a 20.3% margin of safety. 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.
El Pollo Loco Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses and operates quick service restaurants under the name El Pollo Loco. The company is headquartered in Costa Mesa, California.
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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