Texas Roadhouse Inc (TXRH)vsYum! Brands Inc (YUM)
TXRH
Texas Roadhouse Inc
$169.08
+0.69%
CONSUMER CYCLICAL · Cap: $11.11B
YUM
Yum! Brands Inc
$159.16
-0.17%
CONSUMER CYCLICAL · Cap: $44.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 40% more annual revenue ($8.21B vs $5.88B). YUM leads profitability with a 19.0% profit margin vs 6.9%. YUM appears more attractively valued with a PEG of 1.96. YUM earns a higher WallStSmart Score of 59/100 (C).
TXRH
Hold49
out of 100
Grade: D+
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-342.1%
Fair Value
$41.48
Current Price
$169.08
$127.60 premium
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$159.16
$100.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
3.1% revenue growth
6.9% margin — thin
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : TXRH
The strongest argument for TXRH centers on Altman Z-Score, Return on Equity.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : TXRH
The primary concerns for TXRH are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
TXRH profiles as a value stock while YUM is a mature play — different risk/reward profiles.
TXRH carries more volatility with a beta of 0.87 — expect wider price swings.
YUM is growing revenue faster at 6.5% — sustainability is the question.
YUM generates stronger free cash flow (482M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (59/100 vs 49/100), backed by strong 19.0% margins. 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.
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.
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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