Restaurant Brands International Inc. (QSR) vs Yum! Brands, Inc. (YUM)

Restaurant Brands International Inc. and Yum! Brands, Inc. are both Restaurants companies. Yum! Brands, Inc. is the larger, with a market value of $37.8B against $33.4B — 1.1× the size. Yum! Brands, Inc. trades at the lower P/E: 17.3× against 19.2×. Yum! Brands, Inc. grew revenue faster over the last twelve months: 10.3% against 6.51%. Yum! Brands, Inc. has the higher net margin (25.4% vs 13.1%) and the higher return on invested capital (37.6% vs 9.12%). Both pay a dividend; Restaurant Brands International Inc. yields more (2.87% vs 2.05%). Across the 22 metrics below, Yum! Brands, Inc. leads on 13 and Restaurant Brands International Inc. on 9.

Valuation

Metric QSR YUM Restaurants median
P/E 19.16 17.33 22.14
P/S 2.57 4.37 0.91
P/B 4.62 n/m 2.01
Price to free cash flow 14.74 22.71 19.41
EV/EBITDA 12.71 16.91 11.48
EV/Sales 3.86 5.70 1.20
Earnings yield 5.22% 5.77% 2.30%
Free cash flow yield 6.78% 4.40% 3.92%

Profitability

Metric QSR YUM Restaurants median
Gross margin 48.45% 68.13% 38.77%
Operating margin 26.92% 31.01% 4.30%
Net margin 13.13% 25.42% 1.85%
Free cash flow margin 17.43% 19.25% 3.12%
Return on equity 24.28% (29.99%) 3.07%
Return on assets 5.02% 28.42% 1.50%
Return on invested capital 9.12% 37.62% 3.14%

Growth

Metric QSR YUM Restaurants median
Revenue growth (TTM) 6.51% 10.29% 5.16%
EPS growth (last fiscal year) (26.10%) 6.32% —
Revenue growth, 5-year CAGR 13.68% 7.76% 10.57%
Net income growth, 5-year CAGR 9.81% 11.52% 0.00%

Health

Metric QSR YUM Restaurants median
Debt to equity 2.51 (1.73) 0.10
Current ratio 1.01 0.59 0.81
Net debt to EBITDA 4.89 4.03 0.43

Dividend

Metric QSR YUM Restaurants median
Dividend yield 2.87% 2.05% 2.32%
Payout ratio 0.67 0.47 0.00

Size

Metric QSR YUM Restaurants median
Market cap 33.36b 37.80b 482.66m

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