Restaurant Brands International Inc (QSR)vsShake Shack Inc (SHAK)
QSR
Restaurant Brands International Inc
$75.52
+0.87%
CONSUMER CYCLICAL · Cap: $34.23B
SHAK
Shake Shack Inc
$63.05
-0.24%
CONSUMER CYCLICAL · Cap: $2.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Restaurant Brands International Inc generates 543% more annual revenue ($9.59B vs $1.49B). QSR leads profitability with a 10.0% profit margin vs 2.8%. QSR appears more attractively valued with a PEG of 1.26. QSR earns a higher WallStSmart Score of 68/100 (B-).
QSR
Strong Buy68
out of 100
Grade: B-
SHAK
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.9%
Fair Value
$94.14
Current Price
$75.52
$18.62 discount
Margin of Safety
+28.1%
Fair Value
$135.04
Current Price
$63.05
$71.99 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 100.0% YoY
Every $100 of equity generates 26 in profit
Strong operational efficiency at 25.9%
Earnings expanding 28.7% YoY
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
ROE of 7.8% — below average capital efficiency
2.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : QSR
The strongest argument for QSR centers on EPS Growth, Return on Equity, Operating Margin. PEG of 1.26 suggests the stock is reasonably priced for its growth.
Bull Case : SHAK
The strongest argument for SHAK centers on EPS Growth. Revenue growth of 14.3% demonstrates continued momentum.
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 : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 58.1x leaves little room for execution misses. Debt-to-equity of 1.78 is elevated, increasing financial risk.
Key Dynamics to Monitor
SHAK carries more volatility with a beta of 1.63 — expect wider price swings.
SHAK is growing revenue faster at 14.3% — sustainability is the question.
QSR generates stronger free cash flow (169M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
QSR scores higher overall (68/100 vs 51/100). SHAK offers better value entry with a 28.1% 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.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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