PZZA vs DPZ vs YUM vs QSR vs MCD

For growth investors, Restaurant Brands International Inc.

(QSR) is the stronger pick with 12. 2% revenue growth year-over-year, versus -0. 3% for Papa John's International, Inc. (PZZA). Domino's Pizza, Inc. (DPZ) offers the better valuation at 18. 4x trailing P/E (16. 8x forward), making it the more compelling value choice. Analysts rate Papa John's International, Inc. (PZZA) a "Buy" — based on 32 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, Domino's Pizza, Inc.

(DPZ) is the cheapest at 18. 4x versus Papa John's International, Inc. at 34. 6x. On forward P/E, Domino's Pizza, Inc. is actually cheaper at 16. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: McDonald's Corporation wins at 1. 54x 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 -58. 6% for Papa John's International, Inc. (PZZA). Over 10 years, the gap is even starker: DPZ returned +198. 2% versus PZZA's -27. 3%. 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 Papa John's International, Inc. 's 0. 81β — meaning PZZA is approximately 588% more volatile than MCD relative to the S&P 500.

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

(QSR) is pulling ahead at 12. 2% versus -0. 3% for Papa John's International, Inc. (PZZA). On earnings-per-share growth, the picture is similar: Yum! Brands, Inc. grew EPS 6. 5% year-over-year, compared to -64. 6% for Papa John's 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 1. 5% for Papa John's International, Inc. — 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 4. 3% for PZZA. 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, McDonald's Corporation (MCD) is the more undervalued stock at a PEG of 1. 54x versus Restaurant Brands International Inc. 's 2. 46x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Domino's Pizza, Inc. (DPZ) trades at 16. 8x forward P/E versus 22. 5x for Yum! Brands, Inc. — 5. 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.

Papa John's International, Inc. (PZZA) offers the highest yield at 6. 0%, 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%, PZZA: -27. 3%), 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: PZZA is a small-cap income-oriented stock; DPZ is a mid-cap quality compounder stock; YUM is a mid-cap quality compounder stock; QSR is a mid-cap income-oriented stock; MCD is a mid-cap quality compounder 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.