DPZ vs QSR vs MCD vs YUM vs WEN

For growth investors, Restaurant Brands International Inc.

(QSR) is the stronger pick with 12. 2% revenue growth year-over-year, versus -3. 1% for The Wendy's Company (WEN). The Wendy's Company (WEN) offers the better valuation at 8. 6x trailing P/E (12. 7x forward), making it the more compelling value choice. Analysts rate Domino's Pizza, Inc. (DPZ) a "Buy" — based on 52 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, The Wendy's Company (WEN) is the cheapest at 8.

6x versus Restaurant Brands International Inc. at 33. 9x. On forward P/E, The Wendy's Company is actually cheaper at 12. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Wendy's Company wins at 1. 23x versus Restaurant Brands International Inc. 's 2. 46x — a reasonable growth-adjusted valuation.

Over the past 5 years, Yum!

Brands, Inc. (YUM) delivered a total return of +34. 9%, compared to -51. 8% for The Wendy's Company (WEN). Over 10 years, the gap is even starker: DPZ returned +198. 2% versus WEN's +14. 0%. 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), McDonald's Corporation (MCD) is the lower-risk stock at 0.

12β versus The Wendy's Company's 0. 51β — meaning WEN is approximately 332% more volatile than MCD relative to the S&P 500. On balance sheet safety, Restaurant Brands International Inc. (QSR) carries a lower debt/equity ratio of 3% versus 35% for The Wendy's Company — giving it more financial flexibility in a downturn.

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

(QSR) is pulling ahead at 12. 2% versus -3. 1% for The Wendy's Company (WEN). On earnings-per-share growth, the picture is similar: Yum! Brands, Inc. grew EPS 6. 5% year-over-year, compared to -26. 1% for Restaurant Brands International Inc.. Over a 3-year CAGR, QSR leads at 13. 2% 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.

McDonald's Corporation (MCD) is the more profitable company, earning 31.

9% net margin versus 7. 6% for The Wendy's Company — meaning it keeps 31. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MCD leads at 46. 1% versus 15. 3% for WEN. At the gross margin level — before operating expenses — MCD leads at 57. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, The Wendy's Company (WEN) is the more undervalued stock at a PEG of 1. 23x versus Restaurant Brands International Inc. 's 2. 46x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, The Wendy's Company (WEN) trades at 12. 7x forward P/E versus 22. 5x for Yum! Brands, Inc. — 9. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DPZ: 32. 0% to $427. 06.

All stocks in this comparison pay dividends.

The Wendy's Company (WEN) offers the highest yield at 9. 1%, versus 1. 9% for Yum! Brands, Inc. (YUM).

For long-horizon retirement investors, McDonald's Corporation (MCD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

12), 2. 6% yield, +151. 6% 10Y return). Both have compounded well over 10 years (MCD: +151. 6%, WEN: +14. 0%), 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: DPZ is a mid-cap quality compounder stock; QSR is a mid-cap income-oriented stock; MCD is a mid-cap quality compounder stock; YUM is a mid-cap quality compounder stock; WEN is a small-cap deep-value stock. 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.