Analyzing Yum China Holdings (YUMC) and Red Robin Gourmet Burgers (RRGB)
Yum China Holdings (NASDAQ: YUMC) and Red Robin Gourmet Burgers (NASDAQ:RRGB) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
This table compares Yum China Holdings and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Yum China Holdings||7.09%||16.35%||11.33%|
|Red Robin Gourmet Burgers||0.64%||8.00%||3.18%|
Earnings and Valuation
This table compares Yum China Holdings and Red Robin Gourmet Burgers’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Yum China Holdings||$6.75 billion||2.27||$1.06 billion||N/A||N/A|
|Red Robin Gourmet Burgers||$1.32 billion||0.64||$131.93 million||$0.64||101.64|
Yum China Holdings has higher revenue and earnings than Red Robin Gourmet Burgers.
This is a summary of recent ratings and recommmendations for Yum China Holdings and Red Robin Gourmet Burgers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Yum China Holdings||1||5||5||0||2.36|
|Red Robin Gourmet Burgers||0||5||6||0||2.55|
Yum China Holdings currently has a consensus target price of $38.71, indicating a potential downside of 2.96%. Red Robin Gourmet Burgers has a consensus target price of $71.60, indicating a potential upside of 10.07%. Given Red Robin Gourmet Burgers’ stronger consensus rating and higher probable upside, analysts clearly believe Red Robin Gourmet Burgers is more favorable than Yum China Holdings.
Yum China Holdings beats Red Robin Gourmet Burgers on 6 of the 10 factors compared between the two stocks.
About Yum China Holdings
Yum China Holdings, Inc. is a restaurant company. The Company’s segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts. The Company’s restaurants in each of its concept offer consumers the ability to dine in and/or carry out food. In addition, KFC, Pizza Hut Casual Dining, Pizza Hut Home Service and East Dawning offer delivery service. KFC is the quick-service restaurant (QSR) brand. Pizza Hut Casual Dining is the casual dining restaurant (CDR) brand. As of December 31, 2016, the Company had over 360 Pizza Hut Home Service units in over 50 cities in China. The Little Sheep concept specializes in Hot Pot cooking. East Dawning is a Chinese food QSR brand. Taco Bell is a QSR brand specializing in Mexican-style food.
About Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, primarily develops, operates, and franchises full-service restaurants in North America and focuses on serving selection of gourmet burgers. The Company’s menu features a line of gourmet burgers, which it makes from ground beef, as well as its line of Red’s Tavern Double Burgers and its Red Robin’s line of half-pound Angus beef burgers with various toppings. The Company also offers burgers made from chicken breasts, fish fillets, turkey patties, as well as vegetarian and vegan options. The Company offered a selection of buns, including ciabatta, gluten free, sesame, onion, whole grain, jalapeno and lettuce wraps a range of toppings, including fresh guacamole, house made barbeque sauces, aiolis, grilled pineapple, crispy onion straws, sauteed mushrooms, fried jalapenos, bruschetta salsa, coleslaw, eight different cheese choices and a fried egg, as of December 25, 2016.
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