WallStSmart

Restaurant Brands International Inc (QSR)vsYum China Holdings Inc (YUMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Yum China Holdings Inc generates 25% more annual revenue ($11.80B vs $9.43B). QSR leads profitability with a 8.2% profit margin vs 7.9%. QSR appears more attractively valued with a PEG of 1.16. YUMC earns a higher WallStSmart Score of 64/100 (C+).

QSR

Buy

57

out of 100

Grade: C

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

YUMC

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 10.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.54
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
YUMCUndervalued (+52.2%)

Margin of Safety

+52.2%

Fair Value

$117.47

Current Price

$51.74

$65.73 discount

UndervaluedFair: $117.47Overvalued

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%

YUMC1 strengths · Avg: 8.0/10
EPS GrowthGrowth
34.3%8/10

Earnings expanding 34.3% YoY

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

YUMC2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Free Cash FlowQuality
$-112.93M2/10

Negative free cash flow — burning cash

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 : YUMC

The strongest argument for YUMC centers on EPS Growth. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : QSR

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

Bear Case : YUMC

The primary concerns for YUMC are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

QSR carries more volatility with a beta of 0.56 — expect wider price swings.

YUMC is growing revenue faster at 8.8% — sustainability is the question.

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

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

Bottom Line

YUMC scores higher overall (64/100 vs 57/100). 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 China Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.

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