Restaurant Brands International (NYSE:QSR) and Dutch Bros (NYSE:BROS) Financial Review

Dutch Bros (NYSE:BROS) and Restaurant Brands International (NYSE:QSR) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Risk and Volatility

Dutch Bros has a beta of 2.31, indicating that its share price is 131% more volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Dutch Bros and Restaurant Brands International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	5	20	1	2.85
Restaurant Brands International	0	9	16	0	2.64

Dutch Bros presently has a consensus target price of $67.44, suggesting a potential upside of 62.22%. Restaurant Brands International has a consensus target price of $83.52, suggesting a potential upside of 10.79%. Given Dutch Bros’ stronger consensus rating and higher probable upside, analysts plainly believe Dutch Bros is more favorable than Restaurant Brands International.

Earnings and Valuation

This table compares Dutch Bros and Restaurant Brands International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.64 billion	4.43	$79.84 million	$0.72	57.74
Restaurant Brands International	$9.70 billion	2.71	$776.00 million	$3.72	20.27

Restaurant Brands International has higher revenue and earnings than Dutch Bros. Restaurant Brands International is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dutch Bros and Restaurant Brands International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.91%	10.01%	2.95%
Restaurant Brands International	13.12%	33.43%	6.94%

Insider and Institutional Ownership

85.5% of Dutch Bros shares are held by institutional investors. Comparatively, 82.3% of Restaurant Brands International shares are held by institutional investors. 38.9% of Dutch Bros shares are held by company insiders. Comparatively, 1.2% of Restaurant Brands International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Dutch Bros beats Restaurant Brands International on 9 of the 15 factors compared between the two stocks.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.