WallStSmart

Restaurant Brands International Inc (QSR)vsRCI Hospitality Holdings Inc (RICK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 3305% more annual revenue ($9.59B vs $281.63M). QSR leads profitability with a 10.0% profit margin vs -2.3%. RICK appears more attractively valued with a PEG of 0.79. QSR earns a higher WallStSmart Score of 68/100 (B-).

QSR

Strong Buy

68

out of 100

Grade: B-

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

RICK

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 7.7Quality: 4.5
Piotroski: 4/9Altman Z: 1.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QSRUndervalued (+25.4%)

Margin of Safety

+25.4%

Fair Value

$94.75

Current Price

$72.66

$22.09 discount

UndervaluedFair: $94.75Overvalued
RICKUndervalued (+53.5%)

Margin of Safety

+53.5%

Fair Value

$50.35

Current Price

$24.66

$25.69 discount

UndervaluedFair: $50.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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%

RICK3 strengths · Avg: 9.3/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
350.0%10/10

Earnings expanding 350.0% YoY

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Areas to Watch

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

Distress zone — elevated risk

Debt/EquityHealth
4.191/10

Elevated debt levels

RICK4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Altman Z-ScoreHealth
1.584/10

Distress zone — elevated risk

Market CapQuality
$194.86M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.213/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RICK

The strongest argument for RICK centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

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.

Bear Case : RICK

The primary concerns for RICK are Revenue Growth, Altman Z-Score, Market Cap.

Key Dynamics to Monitor

QSR profiles as a value stock while RICK is a turnaround play — different risk/reward profiles.

RICK carries more volatility with a beta of 0.78 — 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.

Bottom Line

QSR scores higher overall (68/100 vs 60/100). RICK offers better value entry with a 53.5% 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.

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.

RCI Hospitality Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

RCI Hospitality Holdings, Inc., is engaged in hospitality and related businesses in the United States. The company is headquartered in Houston, Texas.

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