Restaurant Brands International Inc. (QSR) vs Starbucks Corporation (SBUX)

Restaurant Brands International Inc. and Starbucks Corporation are both Restaurants companies. Starbucks Corporation is the larger, with a market value of $106.5B against $33.4B — 3.2× the size. Restaurant Brands International Inc. trades at the lower P/E: 19.2× against 54.5×. Restaurant Brands International Inc. grew revenue faster over the last twelve months: 6.51% against 4.49%. Restaurant Brands International Inc. has the higher net margin (13.1% vs 5.17%) and the lower return on invested capital (9.12% vs 93.0%). Both pay a dividend; Restaurant Brands International Inc. yields more (2.87% vs 2.39%). Across the 22 metrics below, Restaurant Brands International Inc. leads on 15 and Starbucks Corporation on 7.

Valuation

Metric QSR SBUX Restaurants median
P/E 19.16 54.52 22.14
P/S 2.57 2.82 0.91
P/B 4.62 n/m 2.01
Price to free cash flow 14.74 29.68 19.41
EV/EBITDA 12.71 25.36 11.48
EV/Sales 3.86 3.07 1.20
Earnings yield 5.22% 1.83% 2.30%
Free cash flow yield 6.78% 3.37% 3.92%

Profitability

Metric QSR SBUX Restaurants median
Gross margin 48.45% 67.70% 38.77%
Operating margin 26.92% 7.77% 4.30%
Net margin 13.13% 5.17% 1.85%
Free cash flow margin 17.43% 9.50% 3.12%
Return on equity 24.28% (25.84%) 3.07%
Return on assets 5.02% 6.40% 1.50%
Return on invested capital 9.12% 92.99% 3.14%

Growth

Metric QSR SBUX Restaurants median
Revenue growth (TTM) 6.51% 4.49% 5.16%
EPS growth (last fiscal year) (26.10%) (50.76%) —
Revenue growth, 5-year CAGR 13.68% 9.60% 10.57%
Net income growth, 5-year CAGR 9.81% 14.87% 0.00%

Health

Metric QSR SBUX Restaurants median
Debt to equity 2.51 (1.73) 0.10
Current ratio 1.01 0.76 0.81
Net debt to EBITDA 4.89 2.68 0.43

Dividend

Metric QSR SBUX Restaurants median
Dividend yield 2.87% 2.39% 2.32%
Payout ratio 0.67 0.63 0.00

Size

Metric QSR SBUX Restaurants median
Market cap 33.36b 106.50b 482.66m

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