WallStSmart

Brinker International Inc (EAT)vsRestaurant Brands International Inc (QSR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 66% more annual revenue ($9.43B vs $5.69B). QSR leads profitability with a 8.2% profit margin vs 8.0%. EAT appears more attractively valued with a PEG of 0.89. EAT earns a higher WallStSmart Score of 61/100 (C+).

EAT

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 9.3Quality: 4.5
Piotroski: 5/9Altman Z: 2.63

QSR

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 0.93
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EATUndervalued (+24.3%)

Margin of Safety

+24.3%

Fair Value

$219.83

Current Price

$147.11

$72.72 discount

UndervaluedFair: $219.83Overvalued
QSRSignificantly Overvalued (-295.4%)

Margin of Safety

-295.4%

Fair Value

$17.88

Current Price

$72.92

$55.04 premium

UndervaluedFair: $17.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EAT2 strengths · Avg: 8.0/10
PEG RatioValuation
0.898/10

Growing faster than its price suggests

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

QSR2 strengths · Avg: 8.5/10
Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
26.4%8/10

Strong operational efficiency at 26.4%

Areas to Watch

EAT4 concerns · Avg: 2.8/10
Price/BookValuation
16.9x4/10

Trading at 16.9x book value

Return on EquityProfitability
1.8%3/10

ROE of 1.8% — below average capital efficiency

Profit MarginProfitability
8.0%3/10

8.0% margin — thin

Debt/EquityHealth
4.651/10

Elevated debt levels

QSR3 concerns · Avg: 2.7/10
P/E RatioValuation
28.1x4/10

Moderate valuation

EPS GrowthGrowth
-57.4%2/10

Earnings declined 57.4%

Altman Z-ScoreHealth
0.932/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : EAT

The strongest argument for EAT centers on PEG Ratio, P/E Ratio. PEG of 0.89 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 : EAT

The primary concerns for EAT are Price/Book, Return on Equity, Profit Margin. Debt-to-equity of 4.65 is elevated, increasing financial risk.

Bear Case : QSR

The primary concerns for QSR are P/E Ratio, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

EAT carries more volatility with a beta of 1.36 — expect wider price swings.

QSR is growing revenue faster at 7.4% — 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

EAT scores higher overall (61/100 vs 57/100). 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.

Brinker International Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Brinker International, Inc. owns, develops, operates and franchises casual dining restaurants in the United States and internationally. The company is headquartered in Dallas, Texas.

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.

Want to dig deeper into these stocks?