WallStSmart

Red Robin Gourmet Burgers Inc (RRGB)vsYum! Brands Inc (YUM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Yum! Brands Inc generates 609% more annual revenue ($8.49B vs $1.20B). YUM leads profitability with a 20.5% profit margin vs -2.2%. RRGB appears more attractively valued with a PEG of 1.36. YUM earns a higher WallStSmart Score of 65/100 (C+).

RRGB

Avoid

34

out of 100

Grade: F

Growth: 2.7Profit: 3.0Value: 5.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.49

YUM

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for RRGB.

YUMSignificantly Overvalued (-88.7%)

Margin of Safety

-88.7%

Fair Value

$84.31

Current Price

$150.87

$66.56 premium

UndervaluedFair: $84.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RRGB1 strengths · Avg: 10.0/10
Debt/EquityHealth
-4.7710/10

Conservative balance sheet, low leverage

YUM5 strengths · Avg: 9.4/10
Operating MarginProfitability
31.1%10/10

Strong operational efficiency at 31.1%

EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

Debt/EquityHealth
-1.6410/10

Conservative balance sheet, low leverage

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

Areas to Watch

RRGB4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$85.84M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.4%3/10

Operating margin of 2.4%

Return on EquityProfitability
-238.3%2/10

ROE of -238.3% — below average capital efficiency

YUM4 concerns · Avg: 3.0/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : RRGB

The strongest argument for RRGB centers on Debt/Equity. PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 20.5% and operating margin at 31.1%. Revenue growth of 15.2% demonstrates continued momentum.

Bear Case : RRGB

The primary concerns for RRGB are EPS Growth, Market Cap, Operating Margin.

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

RRGB profiles as a turnaround stock while YUM is a growth play — different risk/reward profiles.

RRGB carries more volatility with a beta of 2.49 — expect wider price swings.

YUM is growing revenue faster at 15.2% — sustainability is the question.

YUM generates stronger free cash flow (341M), providing more financial flexibility.

Bottom Line

YUM scores higher overall (65/100 vs 34/100), backed by strong 20.5% margins and 15.2% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Red Robin Gourmet Burgers Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Red Robin Gourmet Burgers, Inc. develops, operates and franchises full-service restaurants and casual dining. The company is headquartered in Greenwood Village, Colorado.

Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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