WallStSmart

Restaurant Brands International Inc (QSR)vsRave Restaurant Group Inc (RAVE)

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Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 75028% more annual revenue ($9.70B vs $12.91M). RAVE leads profitability with a 22.3% profit margin vs 13.1%. QSR appears more attractively valued with a PEG of 0.88. QSR earns a higher WallStSmart Score of 70/100 (B).

QSR

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 8.0Quality: 3.5
Piotroski: 5/9Altman Z: 0.90

RAVE

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 8.5Value: 5.7Quality: 9.0
Piotroski: 4/9Altman Z: 7.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QSRUndervalued (+37.9%)

Margin of Safety

+37.9%

Fair Value

$113.86

Current Price

$74.52

$39.34 discount

UndervaluedFair: $113.86Overvalued

Intrinsic value data unavailable for RAVE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QSR4 strengths · Avg: 9.0/10
Return on EquityProfitability
33.1%10/10

Every $100 of equity generates 33 in profit

EPS GrowthGrowth
151.2%10/10

Earnings expanding 151.2% YoY

PEG RatioValuation
0.888/10

Growing faster than its price suggests

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

RAVE6 strengths · Avg: 9.2/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.5810/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
22.3%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.8%8/10

Strong operational efficiency at 29.8%

Areas to Watch

QSR3 concerns · Avg: 2.3/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Altman Z-ScoreHealth
0.902/10

Distress zone — elevated risk

Debt/EquityHealth
4.071/10

Elevated debt levels

RAVE3 concerns · Avg: 2.3/10
Market CapQuality
$31.27M3/10

Smaller company, higher risk/reward

PEG RatioValuation
4.992/10

Expensive relative to growth rate

EPS GrowthGrowth
-16.1%2/10

Earnings declined 16.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : QSR

The strongest argument for QSR centers on Return on Equity, EPS Growth, PEG Ratio. PEG of 0.88 suggests the stock is reasonably priced for its growth.

Bull Case : RAVE

The strongest argument for RAVE centers on P/E Ratio, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 22.3% and operating margin at 29.8%.

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.

Bear Case : RAVE

The primary concerns for RAVE are Market Cap, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

QSR profiles as a value stock while RAVE is a mature play — different risk/reward profiles.

QSR carries more volatility with a beta of 0.54 — expect wider price swings.

RAVE is growing revenue faster at 8.8% — sustainability is the question.

QSR generates stronger free cash flow (479M), providing more financial flexibility.

Bottom Line

QSR scores higher overall (70/100 vs 53/100). Both earn "Strong 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.

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.

Rave Restaurant Group Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Rave Restaurant Group, Inc. operates and franchises pizza buffet, delivery / take-out (delco), and express restaurants under the Pizza Inn trademark in the United States and internationally. The company is headquartered in The Colony, Texas.

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