WallStSmart

Restaurant Brands International Inc (QSR)vsYum! Brands Inc (YUM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 11% more annual revenue ($9.43B vs $8.49B). YUM leads profitability with a 20.5% profit margin vs 8.2%. QSR appears more attractively valued with a PEG of 0.94. YUM earns a higher WallStSmart Score of 65/100 (C+).

QSR

Buy

59

out of 100

Grade: C

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

YUM

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 4.5
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QSRUndervalued (+32.6%)

Margin of Safety

+32.6%

Fair Value

$104.92

Current Price

$81.69

$23.23 discount

UndervaluedFair: $104.92Overvalued
YUMSignificantly Overvalued (-77.2%)

Margin of Safety

-77.2%

Fair Value

$89.76

Current Price

$153.93

$64.17 premium

UndervaluedFair: $89.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QSR3 strengths · Avg: 8.3/10
Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Operating MarginProfitability
26.4%8/10

Strong operational efficiency at 26.4%

YUM4 strengths · Avg: 9.3/10
Operating MarginProfitability
31.0%10/10

Strong operational efficiency at 31.0%

EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

Areas to Watch

QSR3 concerns · Avg: 2.7/10
P/E RatioValuation
30.4x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-57.4%2/10

Earnings declined 57.4%

Altman Z-ScoreHealth
0.932/10

Distress zone — elevated risk

YUM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

P/E RatioValuation
25.5x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

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, PEG Ratio, Operating Margin. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.

Bear Case : QSR

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

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

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

YUM carries more volatility with a beta of 0.66 — expect wider price swings.

YUM is growing revenue faster at 15.2% — sustainability is the question.

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

Bottom Line

YUM scores higher overall (65/100 vs 59/100), backed by strong 20.5% margins and 15.2% revenue growth. QSR offers better value entry with a 32.6% margin of safety. Both earn "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.

Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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