Head to Head Survey: Restaurant Brands International (QSR) & El Pollo Loco Holdings (LOCO)
Restaurant Brands International (NYSE: QSR) and El Pollo Loco Holdings (NASDAQ:LOCO) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitabiliy, valuation, risk and earnings.
This table compares Restaurant Brands International and El Pollo Loco Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Restaurant Brands International||12.97%||21.88%||3.95%|
|El Pollo Loco Holdings||4.61%||9.51%||5.38%|
Valuation and Earnings
This table compares Restaurant Brands International and El Pollo Loco Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Restaurant Brands International||$4.23 billion||3.38||$1.86 billion||$1.45||41.82|
|El Pollo Loco Holdings||$385.54 million||1.35||$60.87 million||$0.45||30.00|
Restaurant Brands International has higher revenue and earnings than El Pollo Loco Holdings. El Pollo Loco Holdings 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 pays an annual dividend of $0.76 per share and has a dividend yield of 1.3%. El Pollo Loco Holdings does not pay a dividend. Restaurant Brands International pays out 52.4% of its earnings in the form of a dividend.
Institutional & Insider Ownership
75.5% of Restaurant Brands International shares are held by institutional investors. Comparatively, 77.3% of El Pollo Loco Holdings shares are held by institutional investors. 4.2% of Restaurant Brands International shares are held by insiders. Comparatively, 45.9% of El Pollo Loco Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Restaurant Brands International has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, El Pollo Loco Holdings has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
This is a summary of current recommendations for Restaurant Brands International and El Pollo Loco Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Restaurant Brands International||0||5||11||0||2.69|
|El Pollo Loco Holdings||0||5||1||0||2.17|
Restaurant Brands International presently has a consensus price target of $60.73, indicating a potential upside of 0.15%. El Pollo Loco Holdings has a consensus price target of $15.00, indicating a potential upside of 11.11%. Given El Pollo Loco Holdings’ higher possible upside, analysts clearly believe El Pollo Loco Holdings is more favorable than Restaurant Brands International.
Restaurant Brands International beats El Pollo Loco Holdings on 11 of the 16 factors compared between the two stocks.
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.
El Pollo Loco Holdings Company Profile
El Pollo Loco Holdings, Inc. specializes in fire-grilling citrus-marinated chicken and operates in the limited service restaurant (LSR) segment. The Company’s menu features its signature product, citrus-marinated fire-grilled chicken, and a range of Mexican-inspired entrees that it creates from chicken. Every day in every restaurant, the Company marinates and fire-grills its chicken over open flames, and hand-slices whole tomatoes, avocados, serrano peppers and cilantro to make its salsas, guacamole and cilantro dressings from scratch. The Company also offers burritos, salads, tostadas, bowls, stuffed quesadillas and chicken entrees. The Company’s entrees include Chicken Avocado Burrito, Under 500 Calorie entrees, Ultimate Pollo Bowl, and Stuffed Chicken Avocado Quesadilla. As of December 28, 2016, the Company had 460 restaurants, consisting of 201 Company-operated and 259 franchised restaurants. The Company also offers additional proteins, such as shrimp, carnitas and beef.
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