Dutch Bros Inc. (BROS) vs Wingstop Inc. (WING)

Dutch Bros Inc. and Wingstop Inc. are both Restaurants companies. Dutch Bros Inc. is the larger, with a market value of $6.8B against $2.7B — 2.5× the size. Wingstop Inc. trades at the lower P/E: 23.4× against 52.8×. Dutch Bros Inc. grew revenue faster over the last twelve months: 29.7% against 7.61%. Wingstop Inc. has the higher net margin (16.2% vs 4.91%) and the higher return on invested capital (44.2% vs 12.4%). Across the 21 metrics below, Wingstop Inc. leads on 12 and Dutch Bros Inc. on 9.

Valuation

Metric BROS WING Restaurants median
P/E 52.81 23.42 22.14
P/S 2.72 3.74 0.91
P/B 5.24 n/m 2.01
Price to free cash flow 53.76 21.00 19.41
EV/EBITDA 16.03 16.29 11.48
EV/Sales 2.68 5.22 1.20
Earnings yield 1.89% 4.27% 2.30%
Free cash flow yield 1.86% 4.76% 3.92%

Profitability

Metric BROS WING Restaurants median
Gross margin 25.10% 86.32% 38.77%
Operating margin 9.57% 27.87% 4.30%
Net margin 4.91% 16.15% 1.85%
Free cash flow margin 5.05% 17.83% 3.12%
Return on equity 10.21% (15.96%) 3.07%
Return on assets 2.99% 17.04% 1.50%
Return on invested capital 12.44% 44.17% 3.14%

Growth

Metric BROS WING Restaurants median
Revenue growth (TTM) 29.65% 7.61% 5.16%
EPS growth (last fiscal year) 88.24% 67.84% —
Revenue growth, 5-year CAGR 37.99% 22.87% 10.57%
Net income growth, 5-year CAGR 69.39% 49.54% 0.00%

Health

Metric BROS WING Restaurants median
Debt to equity 0.20 (1.57) 0.10
Current ratio 1.35 2.97 0.81
Net debt to EBITDA (0.25) 4.75 0.43

Dividend

Metric BROS WING Restaurants median
Dividend yield — 0.28% 2.32%
Payout ratio 0.00 0.36 0.00

Size

Metric BROS WING Restaurants median
Market cap 6.75b 2.67b 482.66m

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