Critical Comparison: Bojangles’ (BOJA) & Restaurant Brands International (QSR)
Bojangles’ (NASDAQ: BOJA) and Restaurant Brands International (NYSE:QSR) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Restaurant Brands International pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Bojangles’ does not pay a dividend. Restaurant Brands International pays out 55.6% of its earnings in the form of a dividend.
This is a summary of current ratings for Bojangles’ and Restaurant Brands International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Restaurant Brands International||0||3||12||0||2.80|
Bojangles’ presently has a consensus target price of $19.50, suggesting a potential upside of 46.34%. Restaurant Brands International has a consensus target price of $65.00, suggesting a potential upside of 3.14%. Given Bojangles”s higher probable upside, equities research analysts plainly believe Bojangles’ is more favorable than Restaurant Brands International.
Insider and Institutional Ownership
91.3% of Bojangles’ shares are owned by institutional investors. Comparatively, 76.6% of Restaurant Brands International shares are owned by institutional investors. 55.3% of Bojangles’ shares are owned by company insiders. Comparatively, 4.2% of Restaurant Brands International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Bojangles’ has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.
This table compares Bojangles’ and Restaurant Brands International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Restaurant Brands International||12.66%||22.71%||3.99%|
Valuation and Earnings
This table compares Bojangles’ and Restaurant Brands International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bojangles’||$538.50 million||0.92||$79.81 million||$0.95||14.03|
|Restaurant Brands International||$4.32 billion||3.45||$1.91 billion||$1.44||43.76|
Restaurant Brands International has higher revenue and earnings than Bojangles’. Bojangles’ is trading at a lower price-to-earnings ratio than Restaurant Brands International, indicating that it is currently the more affordable of the two stocks.
Restaurant Brands International beats Bojangles’ on 10 of the 17 factors compared between the two stocks.
Bojangles’ Company Profile
Bojangles’, Inc. is a restaurant operator and franchisor. The Company offers food made from its Southern recipes. The Company’s menu includes its made-from-scratch, buttermilk biscuits baked fresh every 20 minutes; its fresh, never-frozen bone-in fried chicken; its fixin’s; its Bo-Smart menu featuring items, such as salads, grilled chicken sandwiches, roasted chicken bites and fat-free green beans; its freshly baked and delicious sweets menu, and its Legendary Iced Tea. The Company’s food is offered a la carte and in combos. The Company’s chicken, fixin’s, biscuits and Legendary Iced Tea may also be ordered in boxes or family meals, and larger combinations may be offered as tailgate specials or may be packaged in its Big Bo Box. The Company offers Southern style mac ‘n cheese made from two cheeses; fat-free green beans; cole slaw, and mashed potatoes with gravy. Its menu also features salads, sandwiches and its whole meat Roasted Chicken Bites.
Restaurant Brands International Company Profile
Restaurant Brands International Inc. is a quick service restaurant (QSR) company. The Company had over 20,000 restaurants in more than 100 countries and the United States territories, as of December 31, 2016. It operates through two segments: Tim Hortons (TH) and Burger King (BK). Tim Hortons restaurants are quick service restaurants with a menu that includes blend coffee, tea, espresso-based hot and cold specialty drinks, baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps and soups, among others. Burger King restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other food items. The Company operates coffee roasting facilities in Hamilton, Ontario and Rochester, New York. The Company sells its raw materials and supplies, including coffee, sugar, paper goods and other restaurant supplies to Tim Hortons restaurants.
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