WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 76134% more annual revenue ($9.43B vs $12.38M). RAVE leads profitability with a 23.0% profit margin vs 8.2%. QSR appears more attractively valued with a PEG of 1.16. QSR earns a higher WallStSmart Score of 57/100 (C).

QSR

Buy

57

out of 100

Grade: C

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

RAVE

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QSRSignificantly Overvalued (-295.4%)

Margin of Safety

-295.4%

Fair Value

$17.88

Current Price

$72.92

$55.04 premium

UndervaluedFair: $17.88Overvalued
RAVESignificantly Overvalued (-143.4%)

Margin of Safety

-143.4%

Fair Value

$1.36

Current Price

$2.49

$1.13 premium

UndervaluedFair: $1.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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%

RAVE4 strengths · Avg: 8.3/10
Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.4%8/10

Strong operational efficiency at 24.4%

Areas to Watch

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

RAVE3 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$34.96M3/10

Smaller company, higher risk/reward

PEG RatioValuation
4.992/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RAVE

The strongest argument for RAVE centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 23.0% and operating margin at 24.4%.

Bear Case : QSR

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

Bear Case : RAVE

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

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 0.56 — 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.

Bottom Line

QSR scores higher overall (57/100 vs 55/100). 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.

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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