Restaurant Brands International Inc (QSR)vsStarbucks Corporation (SBUX)
QSR
Restaurant Brands International Inc
$72.88
-0.56%
CONSUMER CYCLICAL · Cap: $35.86B
SBUX
Starbucks Corporation
$95.83
-0.87%
CONSUMER CYCLICAL · Cap: $112.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 295% more annual revenue ($38.34B vs $9.70B). QSR leads profitability with a 13.1% profit margin vs 5.2%. SBUX appears more attractively valued with a PEG of 1.19. QSR earns a higher WallStSmart Score of 68/100 (B-).
QSR
Strong Buy68
out of 100
Grade: B-
SBUX
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+25.0%
Fair Value
$94.22
Current Price
$72.88
$21.34 discount
Margin of Safety
+21.1%
Fair Value
$125.61
Current Price
$95.83
$29.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 33 in profit
Earnings expanding 151.2% YoY
Strong operational efficiency at 27.7%
Earnings expanding 85.7% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.4B in free cash flow
Areas to Watch
4.6% revenue growth
Distress zone — elevated risk
Elevated debt levels
ROE of 0.0% — below average capital efficiency
5.2% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : SBUX
The strongest argument for SBUX centers on EPS Growth, Debt/Equity, Market Cap. PEG of 1.19 suggests the stock is reasonably priced for its growth.
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 : SBUX
The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 57.4x leaves little room for execution misses.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 0.96 — expect wider price swings.
QSR is growing revenue faster at 4.6% — sustainability is the question.
SBUX generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
QSR scores higher overall (68/100 vs 51/100). SBUX offers better value entry with a 21.1% margin of safety. 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.
Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
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