QSR vs. CMG: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Investors in the Retail - Restaurants sector should consider Restaurant Brands (QSR) and Chipotle Mexican Grill (CMG) for potential value opportunities [1] Group 1: Investment Metrics - QSR has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while CMG has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting QSR's earnings outlook is improving more significantly than CMG's [3] - Value investors utilize various valuation metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2: Valuation Comparisons - QSR's forward P/E ratio is 18.77, significantly lower than CMG's forward P/E of 31.99 [5] - QSR has a PEG ratio of 2.74, while CMG's PEG ratio is higher at 3.79, indicating QSR may offer better growth relative to its price [5] - QSR's P/B ratio is 4.38 compared to CMG's 15.24, further highlighting QSR's relative valuation advantage [6] - QSR's Value grade is B, while CMG's Value grade is C, suggesting QSR is viewed more favorably by value investors [6]