Restaurants Industry Report
Market Cap: $420.6B
Stocks: 40
Median P/E: 23.6x
Median ROIC: 9.3%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Consumer Cyclical sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -0.0% | -0.4% |
| 1 Week | -0.3% | +1.1% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +0.7% | -0.3% |
| 1 Year | +4.2% | -6.5% |
| 3 Years | +37.4% | +3.7% |
| 5 Years | +57.0% | -30.3% |
Today's Breadth: 11 advancing · 23 declining · 2 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 23.6x | 14.3x | 32.0x | +6% |
| P/B | 2.1x | 1.0x | 5.8x | -41% |
| P/S | 0.7x | 0.4x | 1.8x | — |
| P/FCF | 14.9x | 7.9x | 23.3x | — |
| EV/EBITDA | 9.7x | 6.2x | 14.1x | — |
| EV/EBIT | 18.9x | 13.2x | 32.6x | — |
Earnings Yield
3.9%
FCF Yield
4.8%
Below Fair Value
50% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 62.4% | 57.8% | 24.2% | 70.8% |
| Operating Margin | 5.0% | — | 1.3% | 11.4% |
| Net Margin | 2.5% | 2.6% | 0.1% | 7.0% |
| FCF Margin | 4.6% | — | 0.2% | 10.9% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 8.3% | — | -0.3% | 18.1% |
| ROA | 2.4% | — | 0.0% | 5.0% |
| ROIC | 9.3% | 9.2% | 4.1% | 20.0% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +5.1% | +8.2% | +9.1% |
| EPS | +4.1% | +6.7% | +13.0% |
| Free Cash Flow | +18.4% | +9.4% | +9.2% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
1.0x
Net Debt / EBITDA
2.7x
Interest Coverage
3.4x
Current Ratio
0.6x
Altman Z-Score
Safe (>3): 9 (23%)
Gray (1.8–3): 10 (26%)
Distress (<1.8): 20 (51%)
Piotroski F-Score
Strong (7–9): 11 (28%)
Moderate (4–6): 23 (57%)
Weak (0–3): 6 (15%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| MCD | 1 | $218.2B | 26.0x | 17.9x | 27.3% | 31.9% | +3.7% | 2.3% | +0.7% | 5/9 |
| CMG | 2 | $46.6B | 33.2x | 21.7x | 73.7% | 12.9% | +5.4% | — | -2.1% | 8/9 |
| YUM | 3 | $45.3B | 27.5x | 19.2x | 68.0% | 19.0% | +8.8% | 1.9% | +3.3% | 4/9 |
| QSR | 4 | $25.6B | 29.7x | 14.1x | 9.4% | 8.2% | +12.2% | 3.5% | +4.1% | 4/9 |
| DRI | 5 | $22.7B | 23.6x | 14.1x | 21.7% | 8.7% | +6.0% | 2.7% | +2.7% | 6/9 |
| ARMK | 6 | $11.6B | 32.0x | 11.5x | 7.9% | 1.8% | +6.3% | 1.1% | -0.4% | 1/9 |
| TXRH | 7 | $10.8B | 28.0x | — | 24.0% | 6.9% | +9.4% | 1.6% | +0.4% | 7/9 |
| CAVA | 8 | $9.9B | 111.4x | — | 56.2% | 5.4% | +22.4% | — | -3.4% | 2/9 |
| EAT | 9 | $7.1B | 21.6x | 4.7x | 54.8% | 7.1% | +21.9% | — | -2.8% | 5/9 |
| WING | 10 | $5.2B | 41.3x | 39.2x | 47.8% | 25.0% | +11.3% | 0.4% | -2.6% | 5/9 |
| CAKE | 11 | $2.9B | 17.2x | 9.5x | 20.5% | 4.0% | +4.8% | 2.1% | -2.3% | 3/9 |
| ARCO | 12 | $1.8B | — | — | 12.6% | 3.3% | +3.2% | — | +1.7% | 2/9 |
| MAB-L | 13 | $1.6B | 9.0x | 7.6x | 6.8% | 6.5% | +7.2% | — | — | 2/9 |
| SSPG-L | 14 | $1.5B | -22.4x | 26.0x | 8.9% | -2.0% | +9.4% | 1.8% | — | 1/9 |
| PZZA | 15 | $1.2B | 43.1x | 10.8x | 17.1% | 1.4% | -0.3% | 4.7% | -3.4% | 4/9 |
| BJRI | 16 | $834M | 16.7x | 6.9x | 11.1% | 3.5% | +3.1% | — | +3.5% | 4/9 |
| BH | 17 | $758M | — | — | — | — | +9.2% | — | -10.8% | 3/9 |
| FWRG | 18 | $695M | 51.3x | 12.1x | 3.5% | 1.6% | +20.3% | — | +7.8% | 2/9 |
| SG | 19 | $675M | — | — | -37.6% | -19.7% | +0.4% | — | -13.2% | 0/9 |
| KRUS | 20 | $662M | — | — | -0.8% | -0.7% | +18.9% | — | -1.0% | 1/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Retail-Eating Places | 36 | $416.5B | 99.0% | |
| Restaurants | 4 | $4.1B | 1.0% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
8%
Median Piotroski F
6/9
Profitable Years
8 of 10
Dividends & Shareholder Returns
Paying Dividends
48%
Median Div Yield
2.2%
Median Buyback Yield
1.6%
Shareholder Yield
3.5%
Payout Ratio
48.5%
Div Growth (3Y)
8.4%
Div Growth (5Y)
14.0%
Strengths & Weaknesses
Strengths
- +[Profitability]High pricing power with a median gross margin of 62.4%, reflecting differentiated products or strong brand moats.
Weaknesses
- −[Financial Health]51.3% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 3.4x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Razor-thin net margins at a median of 2.5%, leaving little room for execution error or economic downturn.
- −[Quality]Only 7.5% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.