WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Yum China Holdings Inc generates 28% more annual revenue ($12.44B vs $9.70B). QSR leads profitability with a 13.1% profit margin vs 7.8%. YUMC appears more attractively valued with a PEG of 0.97. YUMC earns a higher WallStSmart Score of 71/100 (B).

QSR

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: 0.90

YUMC

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 6.5Value: 7.0Quality: 6.0
Piotroski: 5/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QSRUndervalued (+25.0%)

Margin of Safety

+25.0%

Fair Value

$94.22

Current Price

$72.88

$21.34 discount

UndervaluedFair: $94.22Overvalued

Intrinsic value data unavailable for YUMC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QSR3 strengths · Avg: 9.3/10
Return on EquityProfitability
33.1%10/10

Every $100 of equity generates 33 in profit

EPS GrowthGrowth
151.2%10/10

Earnings expanding 151.2% YoY

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

YUMC4 strengths · Avg: 8.0/10
PEG RatioValuation
0.978/10

Growing faster than its price suggests

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

EPS GrowthGrowth
21.4%8/10

Earnings expanding 21.4% YoY

Areas to Watch

QSR3 concerns · Avg: 2.3/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Altman Z-ScoreHealth
0.902/10

Distress zone — elevated risk

Debt/EquityHealth
4.071/10

Elevated debt levels

YUMC1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.8%3/10

7.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : QSR

The strongest argument for QSR centers on Return on Equity, EPS Growth, Operating Margin. PEG of 1.24 suggests the stock is reasonably priced for its growth.

Bull Case : YUMC

The strongest argument for YUMC centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 12.6% demonstrates continued momentum. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bear Case : QSR

The primary concerns for QSR are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.07 is elevated, increasing financial risk.

Bear Case : YUMC

The primary concerns for YUMC are Profit Margin.

Key Dynamics to Monitor

QSR carries more volatility with a beta of 0.53 — expect wider price swings.

YUMC is growing revenue faster at 12.6% — sustainability is the question.

QSR generates stronger free cash flow (479M), providing more financial flexibility.

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

Bottom Line

YUMC scores higher overall (71/100 vs 68/100) and 12.6% revenue growth. QSR offers better value entry with a 25.0% margin of safety. Both earn "Strong Buy" and "Strong 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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