WallStSmart

Restaurant Brands International Inc (QSR)vsStarbucks Corporation (SBUX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 300% more annual revenue ($37.70B vs $9.43B). QSR leads profitability with a 8.2% profit margin vs 3.6%. QSR appears more attractively valued with a PEG of 1.16. QSR earns a higher WallStSmart Score of 57/100 (C).

QSR

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 0.93

SBUX

Hold

39

out of 100

Grade: F

Growth: 4.0Profit: 5.0Value: 4.7Quality: 4.3
Piotroski: 2/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QSRSignificantly Overvalued (-295.4%)

Margin of Safety

-295.4%

Fair Value

$17.88

Current Price

$73.75

$55.87 premium

UndervaluedFair: $17.88Overvalued
SBUXSignificantly Overvalued (-1114.7%)

Margin of Safety

-1114.7%

Fair Value

$8.16

Current Price

$92.55

$84.39 premium

UndervaluedFair: $8.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QSR2 strengths · Avg: 8.5/10
Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
26.4%8/10

Strong operational efficiency at 26.4%

SBUX2 strengths · Avg: 8.5/10
Market CapQuality
$105.44B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

Areas to Watch

QSR3 concerns · Avg: 2.7/10
P/E RatioValuation
28.0x4/10

Moderate valuation

EPS GrowthGrowth
-57.4%2/10

Earnings declined 57.4%

Altman Z-ScoreHealth
0.932/10

Distress zone — elevated risk

SBUX4 concerns · Avg: 3.3/10
PEG RatioValuation
1.584/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : QSR

The strongest argument for QSR centers on Return on Equity, Operating Margin. PEG of 1.16 suggests the stock is reasonably priced for its growth.

Bull Case : SBUX

The strongest argument for SBUX centers on Market Cap, Free Cash Flow.

Bear Case : QSR

The primary concerns for QSR are P/E Ratio, EPS Growth, Altman Z-Score.

Bear Case : SBUX

The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 77.1x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

SBUX carries more volatility with a beta of 0.93 — expect wider price swings.

QSR is growing revenue faster at 7.4% — sustainability is the question.

SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.

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

Bottom Line

QSR scores higher overall (57/100 vs 39/100). Both earn "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.

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.

Starbucks Corporation

CONSUMER CYCLICAL · RESTAURANTS · USA

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.

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