Dutch Bros Inc. (BROS) vs Yum China (YUMC)

Dutch Bros Inc. and Yum China are both Restaurants companies. Yum China is the larger, with a market value of $13.8B against $6.8B — 2.0× the size. Yum China trades at the lower P/E: 14.8× against 52.8×. Dutch Bros Inc. grew revenue faster over the last twelve months: 29.7% against 8.78%. Yum China has the higher net margin (7.84% vs 4.91%) and the higher return on invested capital (18.0% vs 12.4%). Across the 22 metrics below, Yum China leads on 16 and Dutch Bros Inc. on 6.

Valuation

Metric BROS YUMC Restaurants median
P/E 52.81 14.77 22.14
P/S 2.72 1.13 0.91
P/B 5.24 2.32 2.01
Price to free cash flow 53.76 14.98 19.41
EV/EBITDA 16.03 6.93 11.48
EV/Sales 2.68 1.03 1.20
Earnings yield 1.89% 6.77% 2.30%
Free cash flow yield 1.86% 6.67% 3.92%

Profitability

Metric BROS YUMC Restaurants median
Gross margin 25.10% 22.02% 38.77%
Operating margin 9.57% 11.11% 4.30%
Net margin 4.91% 7.84% 1.85%
Free cash flow margin 5.05% 7.56% 3.12%
Return on equity 10.21% 15.58% 3.07%
Return on assets 2.99% 8.92% 1.50%
Return on invested capital 12.44% 18.03% 3.14%

Growth

Metric BROS YUMC Restaurants median
Revenue growth (TTM) 29.65% 8.78% 5.16%
EPS growth (last fiscal year) 88.24% 7.73% —
Revenue growth, 5-year CAGR 37.99% 7.38% 10.57%
Net income growth, 5-year CAGR 69.39% 3.45% 0.00%

Health

Metric BROS YUMC Restaurants median
Debt to equity 0.20 0.02 0.10
Current ratio 1.35 0.96 0.81
Net debt to EBITDA (0.25) (0.75) 0.43

Dividend

Metric BROS YUMC Restaurants median
Dividend yield — 1.57% 2.32%
Payout ratio 0.00 0.28 0.00

Size

Metric BROS YUMC Restaurants median
Market cap 6.75b 13.80b 482.66m

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