QSR vs. DRI, YUMC, WING, TXRH, YUM, CAVA, CMG, BLDR, DECK, and EBAY
Should you be buying Restaurant Brands International stock or one of its competitors? The main competitors of Restaurant Brands International include Darden Restaurants (DRI), Yum China (YUMC), Wingstop (WING), Texas Roadhouse (TXRH), Yum! Brands (YUM), CAVA Group (CAVA), Chipotle Mexican Grill (CMG), Builders FirstSource (BLDR), Deckers Outdoor (DECK), and eBay (EBAY). These companies are all part of the "retail/wholesale" sector.
Darden Restaurants (NYSE:DRI) and Restaurant Brands International (NYSE:QSR) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, community ranking, dividends, media sentiment, valuation, profitability, institutional ownership, risk and analyst recommendations.
Darden Restaurants has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
Darden Restaurants received 477 more outperform votes than Restaurant Brands International when rated by MarketBeat users. Likewise, 66.55% of users gave Darden Restaurants an outperform vote while only 60.64% of users gave Restaurant Brands International an outperform vote.
93.6% of Darden Restaurants shares are held by institutional investors. Comparatively, 82.3% of Restaurant Brands International shares are held by institutional investors. 0.9% of Darden Restaurants shares are held by insiders. Comparatively, 1.3% of Restaurant Brands International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Restaurant Brands International has a net margin of 16.95% compared to Restaurant Brands International's net margin of 9.24%. Restaurant Brands International's return on equity of 49.94% beat Darden Restaurants' return on equity.
Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.3%. Restaurant Brands International pays an annual dividend of $2.32 per share and has a dividend yield of 3.2%. Darden Restaurants pays out 61.4% of its earnings in the form of a dividend. Restaurant Brands International pays out 61.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Darden Restaurants has increased its dividend for 3 consecutive years and Restaurant Brands International has increased its dividend for 9 consecutive years. Darden Restaurants is clearly the better dividend stock, given its higher yield and lower payout ratio.
Darden Restaurants currently has a consensus target price of $178.85, suggesting a potential upside of 14.27%. Restaurant Brands International has a consensus target price of $82.25, suggesting a potential upside of 12.56%. Given Restaurant Brands International's stronger consensus rating and higher possible upside, analysts plainly believe Darden Restaurants is more favorable than Restaurant Brands International.
In the previous week, Darden Restaurants had 9 more articles in the media than Restaurant Brands International. MarketBeat recorded 15 mentions for Darden Restaurants and 6 mentions for Restaurant Brands International. Darden Restaurants' average media sentiment score of 1.06 beat Restaurant Brands International's score of 1.01 indicating that Restaurant Brands International is being referred to more favorably in the news media.
Restaurant Brands International has lower revenue, but higher earnings than Darden Restaurants. Darden Restaurants is trading at a lower price-to-earnings ratio than Restaurant Brands International, indicating that it is currently the more affordable of the two stocks.
Summary
Darden Restaurants beats Restaurant Brands International on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding QSR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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