QSR vs YUM

For growth investors, Restaurant Brands International Inc.

(QSR) is the stronger pick with 12. 2% revenue growth year-over-year, versus 8. 8% for Yum! Brands, Inc. (YUM). Yum! Brands, Inc. (YUM) offers the better valuation at 28. 3x trailing P/E (23. 3x forward), making it the more compelling value choice. Analysts rate Restaurant Brands International Inc. (QSR) a "Buy" — based on 44 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, Yum!

Brands, Inc. (YUM) is the cheapest at 28. 3x versus Restaurant Brands International Inc. at 33. 7x. On forward P/E, Restaurant Brands International Inc. is actually cheaper at 19. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Yum! Brands, Inc. wins at 1. 71x versus Restaurant Brands International Inc. 's 2. 44x — a reasonable growth-adjusted valuation.

Over the past 5 years, Yum!

Brands, Inc. (YUM) delivered a total return of +40. 0%, compared to +30. 3% for Restaurant Brands International Inc. (QSR). Over 10 years, the gap is even starker: YUM returned +200. 9% versus QSR's +132. 2%. 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), Yum!

Brands, Inc. (YUM) is the lower-risk stock at 0. 19β versus Restaurant Brands International Inc. 's 0. 39β — meaning QSR is approximately 107% more volatile than YUM relative to the S&P 500.

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

(QSR) is pulling ahead at 12. 2% versus 8. 8% for Yum! Brands, Inc. (YUM). 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.

Yum!

Brands, Inc. (YUM) is the more profitable company, earning 19. 0% net margin versus 8. 2% for Restaurant Brands International Inc. — meaning it keeps 19. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: YUM leads at 30. 8% versus 23. 7% for QSR. At the gross margin level — before operating expenses — YUM leads at 46. 2%, 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, Yum! Brands, Inc. (YUM) is the more undervalued stock at a PEG of 1. 71x versus Restaurant Brands International Inc. 's 2. 44x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Restaurant Brands International Inc. (QSR) trades at 19. 5x forward P/E versus 23. 3x for Yum! Brands, Inc. — 3. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for YUM: 10. 9% to $174. 38.

All stocks in this comparison pay dividends.

Restaurant Brands International Inc. (QSR) offers the highest yield at 3. 1%, versus 1. 8% for Yum! Brands, Inc. (YUM).

For long-horizon retirement investors, Yum!

Brands, Inc. (YUM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 19), 1. 8% yield, +200. 9% 10Y return). Both have compounded well over 10 years (YUM: +200. 9%, QSR: +132. 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: QSR is a mid-cap income-oriented stock; YUM 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.