ARCO vs FAT vs QSR vs DENN

For growth investors, FAT Brands Inc.

(FAT) is the stronger pick with 23. 4% revenue growth year-over-year, versus -2. 5% for Denny's Corporation (DENN). Arcos Dorados Holdings Inc. (ARCO) offers the better valuation at 8. 9x trailing P/E (13. 0x forward), making it the more compelling value choice. Analysts rate Arcos Dorados Holdings Inc. (ARCO) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Arcos Dorados Holdings Inc.

(ARCO) is the cheapest at 8. 9x versus Restaurant Brands International Inc. at 33. 9x. On forward P/E, Arcos Dorados Holdings Inc. is actually cheaper at 13. 0x.

Over the past 5 years, Arcos Dorados Holdings Inc.

(ARCO) delivered a total return of +58. 3%, compared to -63. 5% for Denny's Corporation (DENN). Over 10 years, the gap is even starker: QSR returned +133. 5% versus DENN's -42. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Restaurant Brands International Inc.

(QSR) is the lower-risk stock at 0. 35β versus FAT Brands Inc. 's 1. 54β — meaning FAT is approximately 344% more volatile than QSR relative to the S&P 500. On balance sheet safety, Arcos Dorados Holdings Inc. (ARCO) carries a lower debt/equity ratio of 3% versus 3% for Restaurant Brands International Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), FAT Brands Inc.

(FAT) is pulling ahead at 23. 4% versus -2. 5% for Denny's Corporation (DENN). On earnings-per-share growth, the picture is similar: Arcos Dorados Holdings Inc. grew EPS 42. 3% year-over-year, compared to -98. 3% for FAT Brands Inc.. Over a 3-year CAGR, FAT leads at 70. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Restaurant Brands International Inc.

(QSR) is the more profitable company, earning 8. 2% net margin versus -32. 0% for FAT Brands Inc. — meaning it keeps 8. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: QSR leads at 23. 7% versus -8. 8% for FAT. At the gross margin level — before operating expenses — DENN leads at 73. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Arcos Dorados Holdings Inc.

(ARCO) trades at 13. 0x forward P/E versus 19. 6x for Restaurant Brands International Inc. — 6. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARCO: 27. 8% to $11. 53.

In this comparison, FAT (100.

0% yield), QSR (3. 0% yield), ARCO (2. 7% yield) pay a dividend. DENN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Restaurant Brands International Inc.

(QSR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 35), 3. 0% yield, +133. 5% 10Y return). FAT Brands Inc. (FAT) carries a higher beta of 1. 54 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (QSR: +133. 5%, FAT: -14. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ARCO is a small-cap deep-value stock; FAT is a small-cap high-growth stock; QSR is a mid-cap income-oriented stock; DENN is a small-cap deep-value stock. ARCO, FAT, QSR pay a dividend while DENN does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.