Arcos Dorados Holdings Inc (ARCO)vsRestaurant Brands International Inc (QSR)
ARCO
Arcos Dorados Holdings Inc
$8.37
+3.46%
CONSUMER CYCLICAL · Cap: $1.76B
QSR
Restaurant Brands International Inc
$72.92
-1.26%
CONSUMER CYCLICAL · Cap: $33.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Restaurant Brands International Inc generates 102% more annual revenue ($9.43B vs $4.68B). QSR leads profitability with a 8.2% profit margin vs 4.5%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 60/100 (C).
ARCO
Buy60
out of 100
Grade: C
QSR
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.4%
Fair Value
$6.87
Current Price
$8.37
$1.50 premium
Margin of Safety
-295.4%
Fair Value
$17.88
Current Price
$72.92
$55.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 33 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 24 in profit
Strong operational efficiency at 26.4%
Areas to Watch
Smaller company, higher risk/reward
4.5% margin — thin
Weak financial health signals
Earnings declined 56.9%
Moderate valuation
Earnings declined 57.4%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, PEG Ratio. Revenue growth of 10.7% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bull Case : QSR
The strongest argument for QSR centers on Return on Equity, Operating Margin. PEG of 1.16 suggests the stock is reasonably priced for its growth.
Bear Case : ARCO
The primary concerns for ARCO are Market Cap, Profit Margin, Piotroski F-Score. Debt-to-equity of 2.77 is elevated, increasing financial risk. Thin 4.5% margins leave little buffer for downturns.
Bear Case : QSR
The primary concerns for QSR are P/E Ratio, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
QSR carries more volatility with a beta of 0.56 — expect wider price swings.
ARCO is growing revenue faster at 10.7% — sustainability is the question.
QSR generates stronger free cash flow (441M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (60/100 vs 57/100) and 10.7% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
Visit Website →Restaurant Brands International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Restaurant Brands International Inc. owns, operates and franchises quick-service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company is headquartered in Toronto, Canada.
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