Restaurant Brands International Inc (QSR) is slightly undervalued and Yum China Holdings Inc (YUMC) is undervalued.
Against our estimates of intrinsic value, YUMC trades at the wider discount: a margin of safety of +23%, against +8% for QSR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $78.55; the price of $71.91 is 8% below that value, and 82% of that value comes from beyond year five.
Leak Score 39/100 on 9 of 12 signals
Discounting its cash flows at 8.7% (average of 3 methods) values the shares at $54.25; the price of $41.58 is 23% below that value, and 77% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | QSR | YUMC |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $71.91 | $41.58 |
| Intrinsic value | $78.55 | $54.25 |
| Margin of safety | +8% | +23% |
| Leak Score | 39/100 (9/12) | 100/100 (3/12) |
| Market cap | $32.7B | $14.2B |
| Revenue growth, 5 years | 13.7% | 7.4% |
| Operating margin | 27.2% | 12.5% |
| Net margin | 13.1% | 7.8% |
| Return on equity | 39.0% | 17.5% |
| Debt to equity | 4.07 | 0.43 |
| P/E | 21.3x | 15.3x |
| Forward P/E | 16.2x | 12.4x |
| P/B | 8.4x | 2.7x |
| Dividend yield | 3.6% | 2.7% |