WallStSmart

First Watch Restaurant Group Inc (FWRG)vsRestaurant Brands International Inc (QSR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 672% more annual revenue ($9.43B vs $1.22B). QSR leads profitability with a 8.2% profit margin vs 1.6%. QSR trades at a lower P/E of 28.1x. QSR earns a higher WallStSmart Score of 57/100 (C).

FWRG

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 4.0Value: 6.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.15

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

FWRGOvervalued (-14.3%)

Margin of Safety

-14.3%

Fair Value

$14.51

Current Price

$11.27

$3.24 premium

UndervaluedFair: $14.51Overvalued
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

FWRG3 strengths · Avg: 8.7/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

EPS GrowthGrowth
22.9%8/10

Earnings expanding 22.9% YoY

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

FWRG4 concerns · Avg: 3.3/10
P/E RatioValuation
37.0x4/10

Premium valuation, high expectations priced in

Market CapQuality
$700.64M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.2%3/10

ROE of 3.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

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 : FWRG

The strongest argument for FWRG centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 20.2% demonstrates continued momentum.

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 : FWRG

The primary concerns for FWRG are P/E Ratio, Market Cap, Return on Equity. Debt-to-equity of 1.62 is elevated, increasing financial risk. Thin 1.6% 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

FWRG profiles as a growth stock while QSR is a value play — different risk/reward profiles.

FWRG carries more volatility with a beta of 0.92 — expect wider price swings.

FWRG is growing revenue faster at 20.2% — sustainability is the question.

QSR generates stronger free cash flow (441M), providing more financial flexibility.

Bottom Line

QSR scores higher overall (57/100 vs 56/100). 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.

First Watch Restaurant Group Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

First Watch Restaurant Group Inc (FWRG) is a leading entity in the fast-casual dining landscape, focusing on breakfast, brunch, and lunch with an emphasis on health-conscious, fresh, and high-quality ingredients. Established in 1983, the company has developed a dedicated customer following through its innovative menu that evolves with culinary trends. First Watch's commitment to outstanding customer service and a distinctive dining experience is complemented by its strategic expansion into new markets, laying the foundation for sustainable growth and enhanced shareholder value in the competitive restaurant industry.

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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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