WallStSmart

Dutch Bros Inc (BROS)vsYum! Brands Inc (YUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Yum! Brands Inc generates 386% more annual revenue ($8.49B vs $1.75B). YUM leads profitability with a 20.5% profit margin vs 4.6%. YUM appears more attractively valued with a PEG of 1.91. YUM earns a higher WallStSmart Score of 65/100 (C+).

BROS

Hold

45

out of 100

Grade: D

Growth: 7.3Profit: 5.5Value: 2.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.07

YUM

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BROSSignificantly Overvalued (-76.9%)

Margin of Safety

-76.9%

Fair Value

$39.97

Current Price

$55.94

$15.97 premium

UndervaluedFair: $39.97Overvalued
YUMSignificantly Overvalued (-88.1%)

Margin of Safety

-88.1%

Fair Value

$84.55

Current Price

$150.74

$66.19 premium

UndervaluedFair: $84.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BROS1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
30.8%10/10

Revenue surging 30.8% year-over-year

YUM5 strengths · Avg: 9.4/10
Operating MarginProfitability
31.1%10/10

Strong operational efficiency at 31.1%

EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

Debt/EquityHealth
-1.6410/10

Conservative balance sheet, low leverage

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

Areas to Watch

BROS4 concerns · Avg: 3.0/10
Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

Debt/EquityHealth
1.673/10

Elevated debt levels

PEG RatioValuation
2.582/10

Expensive relative to growth rate

YUM4 concerns · Avg: 3.0/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BROS

The strongest argument for BROS centers on Revenue Growth. Revenue growth of 30.8% demonstrates continued momentum.

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 20.5% and operating margin at 31.1%. Revenue growth of 15.2% demonstrates continued momentum.

Bear Case : BROS

The primary concerns for BROS are Price/Book, Profit Margin, Debt/Equity. A P/E of 103.0x leaves little room for execution misses. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

BROS profiles as a hypergrowth stock while YUM is a growth play — different risk/reward profiles.

BROS carries more volatility with a beta of 2.37 — expect wider price swings.

BROS is growing revenue faster at 30.8% — sustainability is the question.

YUM generates stronger free cash flow (341M), providing more financial flexibility.

Bottom Line

YUM scores higher overall (65/100 vs 45/100), backed by strong 20.5% margins and 15.2% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Dutch Bros Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Dutch Bros Inc. operates and franchises convenience stores. The company is headquartered in Grants Pass, Oregon.

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Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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