Texas Roadhouse, Inc. (TXRH) vs Yum! Brands, Inc. (YUM)

Texas Roadhouse, Inc. and Yum! Brands, Inc. are both Restaurants companies. Yum! Brands, Inc. is the larger, with a market value of $37.8B against $10.6B — 3.6× the size. Yum! Brands, Inc. trades at the lower P/E: 17.3× against 25.5×. Yum! Brands, Inc. grew revenue faster over the last twelve months: 10.3% against 9.89%. Yum! Brands, Inc. has the higher net margin (25.4% vs 6.63%) and the higher return on invested capital (37.6% vs 21.1%). Both pay a dividend; Yum! Brands, Inc. yields more (2.05% vs 1.62%). Across the 22 metrics below, Yum! Brands, Inc. leads on 15 and Texas Roadhouse, Inc. on 7.

Valuation

Metric TXRH YUM Restaurants median
P/E 25.50 17.33 22.14
P/S 1.68 4.37 0.91
P/B 6.64 n/m 2.01
Price to free cash flow 23.96 22.71 19.41
EV/EBITDA 14.70 16.91 11.48
EV/Sales 1.66 5.70 1.20
Earnings yield 3.92% 5.77% 2.30%
Free cash flow yield 4.17% 4.40% 3.92%

Profitability

Metric TXRH YUM Restaurants median
Gross margin 15.69% 68.13% 38.77%
Operating margin 7.75% 31.01% 4.30%
Net margin 6.63% 25.42% 1.85%
Free cash flow margin 7.02% 19.25% 3.12%
Return on equity 27.13% (29.99%) 3.07%
Return on assets 11.93% 28.42% 1.50%
Return on invested capital 21.14% 37.62% 3.14%

Growth

Metric TXRH YUM Restaurants median
Revenue growth (TTM) 9.89% 10.29% 5.16%
EPS growth (last fiscal year) (5.72%) 6.32% —
Revenue growth, 5-year CAGR 19.64% 7.76% 10.57%
Net income growth, 5-year CAGR 66.97% 11.52% 0.00%

Health

Metric TXRH YUM Restaurants median
Debt to equity 0.03 (1.73) 0.10
Current ratio 0.46 0.59 0.81
Net debt to EBITDA (0.20) 4.03 0.43

Dividend

Metric TXRH YUM Restaurants median
Dividend yield 1.62% 2.05% 2.32%
Payout ratio 0.47 0.47 0.00

Size

Metric TXRH YUM Restaurants median
Market cap 10.60b 37.80b 482.66m

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