THCH vs MCD vs QSR vs SBUX

For growth investors, Restaurant Brands International Inc.

(QSR) is the stronger pick with 12. 2% revenue growth year-over-year, versus -11. 7% for TH International Limited (THCH). McDonald's Corporation (MCD) offers the better valuation at 23. 7x trailing P/E (21. 5x 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, McDonald's Corporation (MCD) is the cheapest at 23.

7x versus Starbucks Corporation at 64. 0x. 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: Restaurant Brands International Inc. wins at 2. 44x versus Starbucks Corporation's 2. 82x.

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

3%, compared to -96. 0% for TH International Limited (THCH). Over 10 years, the gap is even starker: MCD returned +157. 7% versus THCH's -96. 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), TH International Limited (THCH) is the lower-risk stock at -0.

05β versus Starbucks Corporation's 0. 99β — meaning SBUX is approximately -2243% more volatile than THCH relative to the S&P 500.

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

(QSR) is pulling ahead at 12. 2% versus -11. 7% for TH International Limited (THCH). On earnings-per-share growth, the picture is similar: TH International Limited grew EPS 55. 3% year-over-year, compared to -50. 8% for Starbucks Corporation. Over a 3-year CAGR, THCH leads at 29. 3% 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 -29. 6% for TH International Limited — 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 -25. 1% for THCH. 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, Restaurant Brands International Inc. (QSR) is the more undervalued stock at a PEG of 2. 44x versus Starbucks Corporation's 2. 82x. 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 44. 0x for Starbucks Corporation — 24. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCD: 24. 2% to $352. 25.

In this comparison, QSR (3.

1% yield), MCD (2. 5% yield), SBUX (2. 3% yield) pay a dividend. THCH does 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). Both have compounded well over 10 years (MCD: +157. 7%, SBUX: +114. 8%), 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: THCH is a small-cap quality compounder stock; MCD is a large-cap quality compounder stock; QSR is a mid-cap income-oriented stock; SBUX is a mid-cap quality compounder stock. MCD, QSR, SBUX pay a dividend while THCH 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.