Comparing First Watch Restaurant Group (NASDAQ:FWRG) & Yum! Brands (NYSE:YUM)

First Watch Restaurant Group (NASDAQ:FWRGGet Rating) and Yum! Brands (NYSE:YUMGet Rating) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Valuation and Earnings

This table compares First Watch Restaurant Group and Yum! Brands’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Watch Restaurant Group $601.19 million 1.43 -$2.11 million N/A N/A
Yum! Brands $6.58 billion 5.01 $1.58 billion $5.51 20.98

Yum! Brands has higher revenue and earnings than First Watch Restaurant Group.

Profitability

This table compares First Watch Restaurant Group and Yum! Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Watch Restaurant Group N/A N/A N/A
Yum! Brands 24.80% -16.34% 22.34%

Insider and Institutional Ownership

97.4% of First Watch Restaurant Group shares are held by institutional investors. Comparatively, 79.2% of Yum! Brands shares are held by institutional investors. 4.1% of First Watch Restaurant Group shares are held by company insiders. Comparatively, 0.4% of Yum! Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for First Watch Restaurant Group and Yum! Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Watch Restaurant Group 0 1 9 0 2.90
Yum! Brands 0 6 10 0 2.63

First Watch Restaurant Group presently has a consensus price target of $22.50, indicating a potential upside of 54.22%. Yum! Brands has a consensus price target of $139.80, indicating a potential upside of 20.94%. Given First Watch Restaurant Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe First Watch Restaurant Group is more favorable than Yum! Brands.

Summary

Yum! Brands beats First Watch Restaurant Group on 6 of the 11 factors compared between the two stocks.

First Watch Restaurant Group Company Profile (Get Rating)

First Watch Restaurant Group, Inc. operates and franchises restaurants under the First Watch trade name. As of March 23, 2022, it operated 341 company-owned restaurants and 94 franchised restaurants in 28 states in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is headquartered in Bradenton, Florida.

Yum! Brands Company Profile (Get Rating)

YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates through four segments: the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division. The company operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. As of December 31, 2021, it had 26,934 KFC units; 18,381 Pizza Hut units; 7,791 Taco Bell units; and 318 The Habit Burger Grill units in approximately 157 countries and territories. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.

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