WallStSmart

Restaurant Brands International Inc (QSR)vsTexas Roadhouse Inc (TXRH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 60% more annual revenue ($9.43B vs $5.88B). QSR leads profitability with a 8.2% profit margin vs 6.9%. 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

TXRH

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 7.0Value: 7.3Quality: 5.3
Piotroski: 3/9Altman Z: 3.27
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
TXRHSignificantly Overvalued (-342.1%)

Margin of Safety

-342.1%

Fair Value

$41.48

Current Price

$169.08

$127.60 premium

UndervaluedFair: $41.48Overvalued

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%

TXRH2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.0%9/10

Every $100 of equity generates 29 in profit

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

TXRH4 concerns · Avg: 3.8/10
PEG RatioValuation
2.324/10

Expensive relative to growth rate

P/E RatioValuation
27.5x4/10

Moderate valuation

Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

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 : TXRH

The strongest argument for TXRH centers on Altman Z-Score, Return on Equity.

Bear Case : QSR

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

Bear Case : TXRH

The primary concerns for TXRH are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

TXRH carries more volatility with a beta of 0.87 — 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

QSR scores higher overall (57/100 vs 49/100). Both earn "Buy" and "Hold" 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.

Texas Roadhouse Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Texas Roadhouse, Inc., operates casual restaurants in the United States and internationally. The company is headquartered in Louisville, Kentucky.

Want to dig deeper into these stocks?