Texas Roadhouse, Inc. (TXRH) vs Yum China (YUMC)

Texas Roadhouse, Inc. and Yum China are both Restaurants companies. Yum China is the larger, with a market value of $15.3B against $11.2B — 1.4× the size. Yum China trades at the lower P/E: 16.5× against 26.9×. Texas Roadhouse, Inc. grew revenue faster over the last twelve months: 9.89% against 8.78%. Yum China has the higher net margin (7.84% vs 6.63%) and the lower return on invested capital (18.0% vs 21.1%). Both pay a dividend; Yum China yields more (2.46% vs 1.74%). Across the 23 metrics below, Yum China leads on 17 and Texas Roadhouse, Inc. on 6.

Valuation

Metric TXRH YUMC Restaurants median
P/E 26.86 16.46 24.26
P/S 1.77 1.26 0.92
P/B 6.99 2.59 2.01
Price to free cash flow 25.23 16.69 20.49
EV/EBITDA 15.52 7.80 11.76
EV/Sales 1.76 1.16 1.24
Earnings yield 3.72% 6.08% 2.07%
Free cash flow yield 3.96% 5.99% 3.58%

Profitability

Metric TXRH YUMC Restaurants median
Gross margin 15.69% 22.02% 38.77%
Operating margin 7.75% 11.11% 4.30%
Net margin 6.63% 7.84% 1.85%
Free cash flow margin 7.02% 7.56% 3.12%
Return on equity 27.13% 15.58% 3.72%
Return on assets 11.93% 8.92% 1.50%
Return on invested capital 21.14% 18.03% 3.14%

Growth

Metric TXRH YUMC Restaurants median
Revenue growth (TTM) 9.89% 8.78% 5.66%
EPS growth (last fiscal year) (5.72%) 7.73% (7.75%)
Revenue growth, 5-year CAGR 19.64% 7.38% 10.57%
Net income growth, 5-year CAGR 66.97% 3.45% 0.00%

Health

Metric TXRH YUMC Restaurants median
Debt to equity 0.03 0.02 0.10
Current ratio 0.46 0.96 0.77
Net debt to EBITDA (0.20) (0.75) 0.43

Dividend

Metric TXRH YUMC Restaurants median
Dividend yield 1.74% 2.46% 1.97%
Payout ratio 0.47 0.41 0.42

Size

Metric TXRH YUMC Restaurants median
Market cap 11.22b 15.30b 493.91m

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