CAVA Group, Inc. (CAVA)vsRestaurant Brands International Inc (QSR)
CAVA
CAVA Group, Inc.
$55.88
+3.48%
CONSUMER CYCLICAL · Cap: $6.53B
QSR
Restaurant Brands International Inc
$76.96
+0.61%
CONSUMER CYCLICAL · Cap: $35.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Restaurant Brands International Inc generates 606% more annual revenue ($9.70B vs $1.37B). QSR leads profitability with a 13.1% profit margin vs 4.8%. QSR appears more attractively valued with a PEG of 1.24. QSR earns a higher WallStSmart Score of 68/100 (B-).
CAVA
Hold45
out of 100
Grade: D+
QSR
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+1.1%
Fair Value
$56.48
Current Price
$55.88
$0.60 discount
Margin of Safety
+25.1%
Fair Value
$94.35
Current Price
$76.96
$17.39 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 31.3% year-over-year
Every $100 of equity generates 33 in profit
Earnings expanding 151.2% YoY
Strong operational efficiency at 27.7%
Areas to Watch
Grey zone — moderate risk
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Weak financial health signals
4.6% revenue growth
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CAVA
The strongest argument for CAVA centers on Revenue Growth. Revenue growth of 31.3% demonstrates continued momentum.
Bull Case : QSR
The strongest argument for QSR centers on Return on Equity, EPS Growth, Operating Margin. PEG of 1.24 suggests the stock is reasonably priced for its growth.
Bear Case : CAVA
The primary concerns for CAVA are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 96.3x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : QSR
The primary concerns for QSR are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.07 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAVA profiles as a hypergrowth stock while QSR is a value play — different risk/reward profiles.
CAVA carries more volatility with a beta of 1.74 — expect wider price swings.
CAVA is growing revenue faster at 31.3% — sustainability is the question.
QSR generates stronger free cash flow (479M), providing more financial flexibility.
Bottom Line
QSR scores higher overall (68/100 vs 45/100). Both earn "Strong 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.
CAVA Group, Inc.
CONSUMER CYCLICAL · RESTAURANTS · USA
CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company is headquartered in Washington, District of Columbia.
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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