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 $33.4B against $13.8B — 2.4× the size. Yum China trades at the lower P/E: 14.8× against 19.2×. Yum China grew revenue faster over the last twelve months: 8.78% against 6.51%. Restaurant Brands International Inc. has the higher net margin (13.1% vs 7.84%) and the lower return on invested capital (9.12% vs 18.0%). Both pay a dividend; Restaurant Brands International Inc. yields more (2.87% vs 1.57%). Across the 23 metrics below, Yum China leads on 12 and Restaurant Brands International Inc. on 11.

Valuation

Metric QSR YUMC Restaurants median
P/E 19.16 14.77 22.14
P/S 2.57 1.13 0.91
P/B 4.62 2.32 2.01
Price to free cash flow 14.74 14.98 19.41
EV/EBITDA 12.71 6.93 11.48
EV/Sales 3.86 1.03 1.20
Earnings yield 5.22% 6.77% 2.30%
Free cash flow yield 6.78% 6.67% 3.92%

Profitability

Metric QSR YUMC Restaurants median
Gross margin 48.45% 22.02% 38.77%
Operating margin 26.92% 11.11% 4.30%
Net margin 13.13% 7.84% 1.85%
Free cash flow margin 17.43% 7.56% 3.12%
Return on equity 24.28% 15.58% 3.07%
Return on assets 5.02% 8.92% 1.50%
Return on invested capital 9.12% 18.03% 3.14%

Growth

Metric QSR YUMC Restaurants median
Revenue growth (TTM) 6.51% 8.78% 5.16%
EPS growth (last fiscal year) (26.10%) 7.73% —
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 2.51 0.02 0.10
Current ratio 1.01 0.96 0.81
Net debt to EBITDA 4.89 (0.75) 0.43

Dividend

Metric QSR YUMC Restaurants median
Dividend yield 2.87% 1.57% 2.32%
Payout ratio 0.67 0.28 0.00

Size

Metric QSR YUMC Restaurants median
Market cap 33.36b 13.80b 482.66m

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