Based on the consensus estimates, QSR is expected to grow its top line by around 8%, while CMG is expected to grow its topline by around 15% over the next few years. We think CMG’s growth could be much stronger than QSR, but CMG’s valuations is much higher (CMG is trading at 58x Forward P/E), and most of the growth assumption is largely priced in. Therefore, we think the prospective returns in the next three to five years for QSR could be better given its discount valuation (20x Forward P/E). Both are great businesses, and we would be okay to hold both for the long term. The companies operate a highly attractive business model largely as a royalty collection business. We think investors need some patience with the newly recruited CEO of QSR – Patrick Doyle (former DPZ’s CEO, who created tremendous value for DPZ shareholders in the past),
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