Arc Group (OTCMKTS:RLLY) versus Restaurant Brands International (NYSE:QSR) Financial Analysis

Arc Group (OTCMKTS:RLLY) and Restaurant Brands International (NYSE:QSR) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

82.3% of Restaurant Brands International shares are held by institutional investors. 12.4% of Arc Group shares are held by insiders. Comparatively, 1.3% of Restaurant Brands International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Arc Group and Restaurant Brands International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arc Group	N/A	N/A	N/A
Restaurant Brands International	9.95%	32.43%	6.40%

Analyst Ratings

This is a summary of recent recommendations and price targets for Arc Group and Restaurant Brands International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arc Group	0	0	0	0	0.00
Restaurant Brands International	1	11	11	0	2.43

Restaurant Brands International has a consensus target price of $76.57, suggesting a potential upside of 10.13%. Given Restaurant Brands International’s stronger consensus rating and higher possible upside, analysts plainly believe Restaurant Brands International is more favorable than Arc Group.

Earnings and Valuation

This table compares Arc Group and Restaurant Brands International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arc Group	N/A	N/A	N/A	N/A	N/A
Restaurant Brands International	$9.26 billion	2.46	$1.02 billion	$2.81	24.74

Restaurant Brands International has higher revenue and earnings than Arc Group.

Summary

Restaurant Brands International beats Arc Group on 8 of the 9 factors compared between the two stocks.

About Arc Group

ARC Group, Inc. engages in the operation of Dick’s Wings brand of restaurants. It offers its traditional and boneless chicken wings, hog wings, and duck wings spun in its signature sauces and seasonings. The firm oprates through the following segments; Company-Owned Restaurants and Franchise Operations. The Company-Owned Restaurants are casual dining restaurants. The Franchise Operations segment offers franchises for the Dick’s Wings brand. It also offers craft beers under the name Dick’s Craft Beers. The company was founded in April 2000 and is headquartered in Jacksonville, FL.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.