QSR vs. DRI, YUMC, WING, TXRH, YUM, CAVA, CMG, BLDR, DLTR, 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), Dollar Tree (DLTR), and eBay (EBAY). These companies are all part of the "retail/wholesale" sector.
Restaurant Brands International (NYSE:QSR) and Darden Restaurants (NYSE:DRI) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, media sentiment, earnings, risk, community ranking, dividends and analyst recommendations.
Restaurant Brands International has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Darden Restaurants has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.
Darden Restaurants received 470 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 60.72% of users gave Restaurant Brands International an outperform vote.
82.3% of Restaurant Brands International shares are owned by institutional investors. Comparatively, 93.6% of Darden Restaurants shares are owned by institutional investors. 1.3% of Restaurant Brands International shares are owned by company insiders. Comparatively, 0.9% of Darden Restaurants shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Restaurant Brands International pays an annual dividend of $2.32 per share and has a dividend yield of 3.1%. Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.5%. Restaurant Brands International pays out 59.8% of its earnings in the form of a dividend. Darden Restaurants pays out 61.4% 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.
Restaurant Brands International has higher earnings, but lower revenue 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.
Restaurant Brands International has a net margin of 17.17% compared to Darden Restaurants' net margin of 9.24%. Darden Restaurants' return on equity of 49.94% beat Restaurant Brands International's return on equity.
Restaurant Brands International presently has a consensus target price of $83.56, suggesting a potential upside of 10.19%. Darden Restaurants has a consensus target price of $178.85, suggesting a potential upside of 19.83%. Given Darden Restaurants' stronger consensus rating and higher possible upside, analysts clearly believe Darden Restaurants is more favorable than Restaurant Brands International.
In the previous week, Restaurant Brands International had 35 more articles in the media than Darden Restaurants. MarketBeat recorded 47 mentions for Restaurant Brands International and 12 mentions for Darden Restaurants. Darden Restaurants' average media sentiment score of 0.90 beat Restaurant Brands International's score of 0.51 indicating that Darden Restaurants is being referred to more favorably in the news media.
Summary
Darden Restaurants beats Restaurant Brands International on 12 of the 20 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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