We are not fond of the structure of Haidilao’s business as it doesn’t own the trademark to its namesake brand. Instead, the firm licenses the Haidilao brand from a company privately held by founder Zhang Yong. We think this model exposes Haidilao’s shareholders to additional risks and contingencies.
Wage hikes, urbanization trends, and relatively young populations should continue to drive restaurant spending across China.
Although the zero-covid-19 policy is now over, restaurants still contend with cautious spending patterns.
|
Metric
|
06862
|
MCD
|
YUMC
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.98 | 22.31 | 18.69 |
Price/Book Value | 8.21 | — | 2.53 |
Price/Sales | 2.21 | 7.59 | 1.43 |
Price/Cash Flow | 12.12 | 19.93 | 8.67 |
|
Metric
|
06862
|
MCD
|
YUMC
|
|---|---|---|---|
Quick Ratio | 1.79 | 0.63 | 1.19 |
Current Ratio | 2.06 | 0.83 | 1.39 |
Interest Coverage | 16.67 | 8.46 | — |
|
Metric
|
06862
|
MCD
|
YUMC
|
|---|---|---|---|
Return on Assets (Normalized) | 19.01% | 16.58% | 7.09% |
Return on Equity (Normalized) | 46.57% | — | 13.05% |
Return on Invested Capital (Normalized) | 24.69% | 21.45% | 7.48% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
MCD
| McDonald's Corp | Dzblwgl | Xmqj | $193.1 Bil | |
CMG
| Chipotle Mexican Grill Inc | Fblrqygy | Npcy | $89.0 Bil | |
SBUX
| Starbucks Corp | Jgzrgdvn | Fgz | $85.7 Bil | |
CMPGY
| Compass Group PLC ADR | Cxkjnjd | Jyvdt | $48.5 Bil | |
YUM
| Yum Brands Inc | Tydnbgw | Blgcd | $38.9 Bil | |
QSR
| Restaurant Brands International Inc | Vwlkcyzl | Zyybpkv | $23.2 Bil | |
DPZ
| Domino's Pizza Inc | Bpxwkqztlv | Nmqlp | $18.0 Bil | |
DRI
| Darden Restaurants Inc | Qctyrbrmm | Dzvgpm | $17.5 Bil | |
YUMC
| Yum China Holdings Inc | Gltwxljy | Gvrd | $14.7 Bil | |
WING
| Wingstop Inc | Vrfwqycw | Wlfbw | $11.5 Bil |
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