Black Rock Coffee Bar, Inc. (BRCB) vs Nathan's Famous, Inc. (NATH)

Black Rock Coffee Bar, Inc. and Nathan's Famous, Inc. are both Restaurants companies. Nathan's Famous, Inc. is the larger, with a market value of $406.2M against $360.0M — 1.1× the size. Black Rock Coffee Bar, Inc. has negative trailing earnings, so its P/E is not meaningful; Nathan's Famous, Inc. trades at 20.9×. Nathan's Famous, Inc. has the higher net margin (11.8% vs 0.69%) and the higher return on invested capital (119.2% vs 1.09%). Across the 15 metrics below, Nathan's Famous, Inc. leads on 9 and Black Rock Coffee Bar, Inc. on 6.

Valuation

Metric BRCB NATH Restaurants median
P/E n/m 20.85 22.14
P/S 0.68 2.46 0.91
P/B 1.39 n/m 2.01
Price to free cash flow n/m 21.79 19.41
EV/EBITDA 10.18 14.16 11.48
EV/Sales 0.75 2.59 1.20
Earnings yield (13.52%) 4.80% 2.30%
Free cash flow yield (26.50%) 4.59% 3.92%

Profitability

Metric BRCB NATH Restaurants median
Gross margin 72.74% 30.37% 38.77%
Operating margin 0.97% 17.73% 4.30%
Net margin 0.69% 11.78% 1.85%
Free cash flow margin (18.08%) 11.28% 3.12%
Return on equity (2.07%) (241.41%) 3.07%
Return on assets 0.78% 31.07% 1.50%
Return on invested capital 1.09% 119.24% 3.14%

Growth

Metric BRCB NATH Restaurants median
Revenue growth (TTM) — 12.44% 5.16%
EPS growth (last fiscal year) — (17.38%) —
Revenue growth, 5-year CAGR — 16.40% 10.57%
Net income growth, 5-year CAGR — 12.57% 0.00%

Health

Metric BRCB NATH Restaurants median
Debt to equity 0.28 (6.64) 0.10
Current ratio 0.71 2.45 0.81
Net debt to EBITDA (0.12) 0.76 0.43

Dividend

Metric BRCB NATH Restaurants median
Dividend yield — 3.03% 2.32%
Payout ratio — 0.39 0.00

Size

Metric BRCB NATH Restaurants median
Market cap 360.02m 406.16m 482.66m

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