QSR vs YUM: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
QSR and YUM are similarly sized, but QSR trades noticeably cheaper on forward earnings (16.89x vs 21.73x): the market is paying up for YUM's profile and pricing QSR more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
QSR vs YUM: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | QSR | YUM | What it tells you |
|---|---|---|---|
| Market cap | $34.27B | $41.07B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 16.89 | 21.73 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 18.80 | 18.96 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.54 | 0.55 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 59% of range | 45% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
Reading it: QSR is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how QSR and YUM affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. QSR and YUM share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined QSR and YUM exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Restaurant Brands International (QSR) do?
Restaurant Brands International Inc. was created in 2014 when Burger King and Tim Hortons combined under 3G Capital's sponsorship, and it has since added Popeyes Louisiana Kitchen (2017) and Firehouse Subs (2021). As of June 30, 2026 it described itself as one of the world's largest quick-service restaurant companies, with nearly ~$49 billion of annual system-wide sales and ~33,156 restaurants in more than 120 countries, over ~95% of them franchised. The company reports six segments: four home-market franchisor segments (TH, BK, PLK and FHS covering the US and Canada), a fifth franchisor segment (INTL) for every brand everywhere else, and a sixth, Restaurant Holdings (RH), which holds the company-operated Burger King restaurants picked up in the 2024 Carrols Restaurant Group acquisition plus Popeyes China and Firehouse Subs Brazil. RH exists to be wound down: management intends to refranchise the vast majority of the Carrols restaurants and find partners for the other two, then sunset the segment. A related simplification already happened in January 2026, when RBI put Burger King China into a joint venture with CPE, which invested ~$350 million of primary capital, leaving RBI with a ~17% equity stake and royalty revenue inside INTL instead of a consolidated operating business.
What does Yum! Brands (YUM) do?
Yum! Brands operates one of the largest restaurant systems in the world, spanning roughly 60,000 units across more than 155 countries under the KFC, Taco Bell, Pizza Hut, and Habit Burger banners. The business is almost entirely franchised (around 98% of units), which makes it capital-light: Yum collects royalties and franchise fees on system sales rather than running most restaurants itself, producing high margins (an operating margin near 33% on a trailing basis) and steady free cash flow. Digital and delivery have become central, with digital sales reaching a record share (near 63%) of total system sales in early 2026.
QSR vs YUM: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- QSR drivers: Burger King US is doing the heavy lifting again; International is where the units and the royalty margin are.
- YUM drivers: Taco Bell momentum; KFC global unit build-out and US reset.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Two of the four brands are going backwards in their home markets: Popeyes comparable sales fell ~5.1% in the quarter (~-5.2% in the US) and its segment adjusted operating income slipped to ~$63 million from ~$66 million, while Tim Hortons comparable sales were ~0.1% (~0.1% in Canada) even though TH is still the largest single AOI contributor at ~$287 million, so the group's growth depends heavily on Burger King's momentum persisting against tougher comparisons. For YUM, consumer-spending softness, value-menu price wars, and commodity or labor inflation can pressure franchisee traffic and, in turn, royalty income.
QSR or YUM: which should you pick?
QSR vs YUM: the full fundamentals
QSR. Operating figures are approximate and drawn from the Q2 2026 earnings release and Form 10-Q filed August 6, 2026; market figures are as of the 2026-10-16 close (~$74.89). The share price has eased ~8% from its August high, so the multiples are a touch lower than at mid-year, and the October 29, 2026 third-quarter report (consensus ~$1.08 adjusted EPS on ~$2.54 billion of revenue) will refresh the operating base. Verify live data before acting on any of them. Three adjustments keep the multiples honest. First, use ~454.5 million shares plus units, not ~348.8 million shares: RBI's own diluted EPS already assumes ~100% conversion of the exchangeable units under the if-converted method, which is why weighted average diluted shares were ~460 million in the quarter against ~348 million basic. Second, the ~3.8x price-to-sales ratio compares badly with pure franchisors because roughly half of reported revenue is low-margin Tim Hortons supply chain distribution and company-operated restaurant sales at the RH segment, neither of which resembles a royalty stream. Third, trailing GAAP earnings were lifted by discrete tax benefits from intra-group reorganisations and by the Burger King China deconsolidation, so adjusted diluted EPS of ~$1.93 for the first half is the cleaner read on run-rate earning power.
YUM. At about $150 Yum trades near 22 times forward earnings, still a premium that reflects its franchise-royalty margins, global brand strength, and cash returns; the lower trailing multiple of about 19 is flattered by an unusually large second-quarter net income. The stock is flat for 2026 and about 5% higher over a year despite a string of earnings beats, so the multiple has drifted down rather than up. Twenty-two analysts tracked by Yahoo carry a mean target near $171.
Headline figures (approximate, October 2026): QSR shows revenue (ttm) ~$9.70 billion for the twelve months to June 30, 2026, versus ~$9.43 billion in fiscal 2025 and ~$8.41 billion in fiscal 2024; second-quarter revenue ~$2.52 billion, up ~4.6% from ~$2.41 billion, earnings Q2 2026 income from operations ~$716 million (up ~48%), net income from continuing operations ~$665 million, diluted EPS from continuing operations ~$1.45 versus ~$0.58; adjusted diluted EPS ~$1.07, up ~12.9%. First half: ~$1,110 million net income from continuing operations, ~$2.42 diluted EPS, ~$1.93 adjusted EPS. Trailing GAAP EPS ~$3.71, system scale and same-store sales ~33,156 restaurants and ~$12.70 billion of Q2 system-wide sales (up ~6.4% in constant currency), nearly ~$49 billion annualised; consolidated comparable sales ~3.8% and net restaurant growth ~2.9%. By segment: BK ~8.6%, INTL ~5.5%, FHS ~0.4%, TH ~0.1%, PLK ~-5.1%, segment profitability Q2 adjusted operating income ~$715 million and adjusted EBITDA ~$810 million: TH ~$287 million on ~$1,137 million of revenue, INTL ~$194 million on ~$274 million, BK ~$137 million on ~$397 million, PLK ~$63 million on ~$199 million, FHS ~$17 million on ~$62 million. Organic AOI growth ~6.7% in the quarter and ~8.5% for the first half, against ~8%+ full-year guidance; YUM shows revenue (ttm) ~$8.7B, q2 2026 revenue ~$2.17B (up ~12% YoY); adjusted EPS $1.62 vs ~$1.56 expected, margins (ttm) ~45% gross, ~33% operating, net income (ttm) ~$2.2B.
The bottom line: QSR vs YUM
QSR and YUM are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined QSR and YUM exposure against your real portfolio. It is not an investment adviser.
Wondering how QSR or YUM fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Restaurant Brands International with AI
Connect the broker you already use and ask Walnut's AI how QSR fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between QSR and YUM?
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Restaurant Brands International Inc. Yum! They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is QSR or YUM the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, QSR or YUM?
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On forward P/E (as of October 2026), QSR trades at 16.89x and YUM at 21.73x, so QSR is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both QSR and YUM?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of QSR vs YUM?
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QSR: Two of the four brands are going backwards in their home markets: Popeyes comparable sales fell ~5.1% in the quarter (~-5.2% in the US) and its segment adjusted operating income slipped to ~$63 million from ~$66 million, while Tim Hortons comparable sales were ~0.1% (~0.1% in Canada) even though TH is still the largest single AOI contributor at ~$287 million, so the group's growth depends heavily on Burger King's momentum persisting against tougher comparisons. Leverage is real rather than nominal: ~$13.61 billion of total debt against ~$1.06 billion of cash leaves ~$12.55 billion net and ~4.1x adjusted EBITDA, which makes interest expense a meaningful claim on cash flow and reduces flexibility if system-wide sales stall. Because over ~95% of restaurants are franchised, franchisee profitability is effectively the credit quality of the revenue base, and commodity inflation, tariffs, labour costs and weak low-income consumer spending hit those operators before they show up in RBI's royalties. Reported results also swing with currency, since RBI reports in US dollars while collecting a large share of sales in Canadian dollars, euros, sterling and dozens of emerging-market currencies. Two legal matters are outstanding and disclosed: an antitrust class action by former Burger King employees over the old no-poach clause in the standard franchise agreement, pending in the US District Court for the Southern District of Florida, where court-ordered mediation reached an impasse in March 2026, and a Delaware Court of Chancery suit by former Carrols shareholders over the 2024 acquisition, where the parties reached an agreement-in-principle to settle in July 2026 subject to court approval. Finally, the trailing tax rate benefited from discrete items tied to intra-group reorganisations, partly offset by OECD global minimum tax guidance, so trailing GAAP earnings per share of ~$3.71 (Yahoo Finance shows ~$3.98 on its own trailing basis) flatter the run rate relative to adjusted diluted EPS of ~$1.93 for the first half. YUM: Consumer-spending softness, value-menu price wars, and commodity or labor inflation can pressure franchisee traffic and, in turn, royalty income. Pizza Hut's weak US comps and falling profit show brand-level execution risk, and the pending divestiture carries closing and valuation uncertainty. Heavy international exposure adds foreign-exchange and geopolitical risk, especially in emerging markets. The balance sheet carries about $13.4B of debt against roughly $683M of cash, a deliberate leveraged-franchisor structure that leaves less room if royalty growth stalls. Analysts expect third-quarter EPS to fall about 8% year over year, and Yum trades at a premium multiple, so any growth disappointment can compress the valuation. Past data-breach and cybersecurity incidents point to operational and reputational exposure.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell QSR or YUM; figures are approximate and dated (as of October 2026). Verify current data before investing.