Restaurant Brands International Inc. (QSR) vs Yum China (YUMC)

Restaurant Brands International Inc. and Yum China are both Restaurants companies. Restaurant Brands International Inc. is the larger, with a market value of $35.5B against $17.0B — 2.1× the size. Restaurant Brands International Inc. trades at the lower P/E: 16.3× against 17.2×. Yum China grew revenue faster over the last twelve months: 9.85% against 5.52%. Restaurant Brands International Inc. has the higher net margin (15.4% vs 7.90%) and the lower return on invested capital (9.13% vs 14.9%). Both pay a dividend; Restaurant Brands International Inc. yields more (3.28% vs 2.23%). Across the 23 metrics below, Restaurant Brands International Inc. leads on 13 and Yum China on 10.

Valuation

Metric QSR YUMC Restaurants median
P/E 16.32 17.19 26.18
P/S 2.79 1.34 1.11
P/B 4.94 2.79 2.06
Price to free cash flow 16.60 17.92 17.92
EV/EBITDA 13.39 8.88 12.81
EV/Sales 4.08 1.33 1.29
Earnings yield 6.13% 5.82% 2.23%
Free cash flow yield 6.03% 5.58% 3.23%

Profitability

Metric QSR YUMC Restaurants median
Gross margin 48.71% 0.00% 38.86%
Operating margin 27.09% 11.28% 4.59%
Net margin 15.35% 7.90% 1.83%
Free cash flow margin 16.84% 7.46% 2.47%
Return on equity 28.06% 16.09% 3.72%
Return on assets 5.89% 8.57% 1.10%
Return on invested capital 9.13% 14.87% 3.01%

Growth

Metric QSR YUMC Restaurants median
Revenue growth (TTM) 5.52% 9.85% 5.52%
EPS growth (last fiscal year) (26.10%) 7.73% (5.05%)
Revenue growth, 5-year CAGR 13.68% 7.38% 10.57%
Net income growth, 5-year CAGR 9.81% 3.45% 0.00%

Health

Metric QSR YUMC Restaurants median
Debt to equity 2.45 0.26 0.22
Current ratio 0.96 0.67 0.78
Net debt to EBITDA 4.89 (0.75) 0.43

Dividend

Metric QSR YUMC Restaurants median
Dividend yield 3.28% 2.23% 1.79%
Payout ratio 0.60 0.39 0.45

Size

Metric QSR YUMC Restaurants median
Market cap 35.45b 17.04b 612.23m

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