WallStSmart

Restaurant Brands International Inc (QSR)vsShake Shack Inc (SHAK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 553% more annual revenue ($9.43B vs $1.45B). QSR leads profitability with a 8.2% profit margin vs 3.2%. 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

SHAK

Hold

50

out of 100

Grade: D+

Growth: 8.0Profit: 5.0Value: 2.0Quality: 4.8
Piotroski: 3/9Altman Z: 1.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QSRSignificantly Overvalued (-295.4%)

Margin of Safety

-295.4%

Fair Value

$17.88

Current Price

$72.92

$55.04 premium

UndervaluedFair: $17.88Overvalued
SHAKSignificantly Overvalued (-90.2%)

Margin of Safety

-90.2%

Fair Value

$51.01

Current Price

$89.50

$38.49 premium

UndervaluedFair: $51.01Overvalued

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%

SHAK2 strengths · Avg: 8.0/10
Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

EPS GrowthGrowth
28.7%8/10

Earnings expanding 28.7% YoY

Areas to Watch

QSR3 concerns · Avg: 2.7/10
P/E RatioValuation
28.1x4/10

Moderate valuation

EPS GrowthGrowth
-57.4%2/10

Earnings declined 57.4%

Altman Z-ScoreHealth
0.932/10

Distress zone — elevated risk

SHAK4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.552/10

Expensive relative to growth rate

P/E RatioValuation
82.6x2/10

Premium valuation, high expectations priced in

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 : SHAK

The strongest argument for SHAK centers on Revenue Growth, EPS Growth. Revenue growth of 21.9% demonstrates continued momentum.

Bear Case : QSR

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

Bear Case : SHAK

The primary concerns for SHAK are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 82.6x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

QSR profiles as a value stock while SHAK is a growth play — different risk/reward profiles.

SHAK carries more volatility with a beta of 1.77 — expect wider price swings.

SHAK is growing revenue faster at 21.9% — sustainability is the question.

QSR generates stronger free cash flow (441M), providing more financial flexibility.

Bottom Line

QSR scores higher overall (57/100 vs 50/100). 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.

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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