RRGB vs MCD vs DENN vs QSR

For growth investors, Restaurant Brands International Inc.

(QSR) is the stronger pick with 12. 2% revenue growth year-over-year, versus -3. 1% for Red Robin Gourmet Burgers, Inc. (RRGB). Denny's Corporation (DENN) offers the better valuation at 15. 2x trailing P/E (15. 0x forward), making it the more compelling value choice. Analysts rate McDonald's Corporation (MCD) a "Buy" — based on 62 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, Denny's Corporation (DENN) is the cheapest at 15.

2x versus Restaurant Brands International Inc. at 33. 7x. On forward P/E, Denny's Corporation is actually cheaper at 15. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Restaurant Brands International Inc. wins at 2. 44x versus McDonald's Corporation's 2. 81x.

Over the past 5 years, McDonald's Corporation (MCD) delivered a total return of +34.

3%, compared to -89. 7% for Red Robin Gourmet Burgers, Inc. (RRGB). Over 10 years, the gap is even starker: MCD returned +157. 7% versus RRGB's -94. 4%. 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.

11β versus Red Robin Gourmet Burgers, Inc. 's 2. 10β — meaning RRGB is approximately 1782% 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 -3. 1% for Red Robin Gourmet Burgers, Inc. (RRGB). On earnings-per-share growth, the picture is similar: Red Robin Gourmet Burgers, Inc. grew EPS 73. 4% 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 -1. 9% for Red Robin Gourmet Burgers, 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 0. 2% for RRGB. 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.

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, Restaurant Brands International Inc. (QSR) is the more undervalued stock at a PEG of 2. 44x versus McDonald's Corporation's 2. 81x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Denny's Corporation (DENN) trades at 15. 0x forward P/E versus 21. 5x for McDonald's Corporation — 6. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RRGB: 90. 7% to $7. 00.

In this comparison, QSR (3.

1% yield), MCD (2. 5% yield) pay a dividend. RRGB, DENN do not pay a meaningful dividend and should not be held primarily for income.

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.

11), 2. 5% yield, +157. 7% 10Y return). Red Robin Gourmet Burgers, Inc. (RRGB) carries a higher beta of 2. 10 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MCD: +157. 7%, RRGB: -94. 4%), 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: RRGB is a small-cap quality compounder stock; MCD is a large-cap quality compounder stock; DENN is a small-cap deep-value stock; QSR is a mid-cap income-oriented stock. MCD, QSR pay a dividend while RRGB, DENN do 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.