BJRI vs. QSR: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Retail - Restaurants sector should consider BJ's Restaurants (BJRI) and Restaurant Brands (QSR) for potential value opportunities, with BJRI currently presenting a better value option based on various financial metrics [1]. Group 1: Zacks Rank and Analyst Outlook - BJRI has a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to QSR, which has a Zacks Rank of 3 (Hold) [3]. - The positive estimate revision activity for BJRI suggests an improving analyst outlook, making it a more attractive option for investors [3]. Group 2: Valuation Metrics - BJRI has a forward P/E ratio of 16.82, while QSR's forward P/E is 18.76, indicating that BJRI may be undervalued relative to QSR [5]. - BJRI's PEG ratio is 1.20, compared to QSR's PEG ratio of 2.15, suggesting that BJRI offers better value when considering expected earnings growth [5]. - BJRI's P/B ratio stands at 1.96, significantly lower than QSR's P/B ratio of 4.7, further supporting the argument that BJRI is the superior value option [6]. Group 3: Value Grades - Based on various valuation metrics, BJRI holds a Value grade of A, while QSR has a Value grade of C, reinforcing BJRI's position as the better value investment at this time [6].