Restaurant Brands International appears to be taking adequate steps to meet the changing demands of its customers, investing in footprint reimaging, loyalty programs, and digital ordering in an effort to shore up its brands' competitive positions, leaning into its scale-driven cost advantage.
Improvements in profitability across brands in 2023 set the stage for a stronger development appetite in 2024 and beyond.
Challenging turnaround efforts at QSR competitors (Pizza Hut, KFC) suggest that RBI's Reclaim the Flame initiatives at Burger King US may not bear fruit despite hefty investment.
|
Metric
|
QSR
|
YUM
|
MCD
|
|---|---|---|---|
Price/Earnings (Normalized) | 22.48 | 26.94 | 22.77 |
Price/Book Value | 7.69 | — | — |
Price/Sales | 4.59 | 5.75 | 7.75 |
Price/Cash Flow | 20.32 | 23.34 | 20.34 |
|
Metric
|
QSR
|
YUM
|
MCD
|
|---|---|---|---|
Quick Ratio | 0.93 | 1.13 | 0.63 |
Current Ratio | 1.08 | 1.49 | 0.83 |
Interest Coverage | 3.48 | 4.66 | 8.46 |
|
Metric
|
QSR
|
YUM
|
MCD
|
|---|---|---|---|
Return on Assets (Normalized) | 6.38% | 24.93% | 16.58% |
Return on Equity (Normalized) | 51.90% | — | — |
Return on Invested Capital (Normalized) | 9.46% | 56.97% | 21.45% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
MCD
| McDonald's Corp | Kvxvflnf | Ffth | $197.1 Bil | |
CMG
| Chipotle Mexican Grill Inc | Hhnzyhmwz | Xxjzy | $87.3 Bil | |
SBUX
| Starbucks Corp | Dxngqmxqsp | Qygmf | $85.7 Bil | |
CMPGY
| Compass Group PLC ADR | Lsrdmhx | Dypsgb | $48.2 Bil | |
YUM
| Yum Brands Inc | Kntlgyzf | Vrntq | $38.7 Bil | |
QSR
| Restaurant Brands International Inc | Wdllcrt | Pjbvmq | $22.7 Bil | |
DPZ
| Domino's Pizza Inc | Wqdymbjyh | Tnjz | $17.8 Bil | |
DRI
| Darden Restaurants Inc | Bpzyfnlpd | Bflkxf | $17.8 Bil | |
YUMC
| Yum China Holdings Inc | Shxvswfk | Pxzp | $15.2 Bil | |
WING
| Wingstop Inc | Tlmnclpts | Xbxpwb | $11.1 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/52d86652-ba2b-43fe-a8fc-523af1fa6e47.jpg)