Burger King Worldwide Inc (NYSE:BKW) is the most expensive company. It is trading at $19.50 per share, with the total market cap of more than $6.8 billion. The market values Burger King Worldwide Inc (NYSE:BKW) at 14.45 times its trailing EBITDA. In the first quarter, Burger King Worldwide Inc (NYSE:BKW) grew its EPS by 49% and its adjusted EBITDA by 5%. However, the company’s system-wide comparable sales dropped by 1.4%.
The company has laid out its detailed plan for different regions in the future. In the U.S. and Canada, it has a Four Pillar plan including Menu, Marketing, Image and Operations to raise the average unit sales. In the international markets, it will accelerate its growth via Master Franchise JVs and Development Agreements, expanding its footprint in the emerging middle class consumer spending.
The company has returned cash to investors via both dividends and share repurchases. At the current price, Burger King Worldwide Inc (NYSE:BKW) yields around 1.23%. The company also announced a $200 million share repurchase program, which is available for use until May 2016. $200 million could yield an additional 2.94%.
Yum! Brands, Inc. (NYSE:YUM) also has a higher valuation. At $71.50 per share, Yum! Brands, Inc. (NYSE:YUM) is worth around $31.90 billion on the market. It is valued at 12.70 times its trailing EBITDA.
Yum! Brands, Inc. (NYSE:YUM) focuses its operations mainly in China. Year-to-date, around $2.6 billion was generated in China, accounting for nearly 47.8% of the total revenue, while the U.S. ranked second with $1.4 billion in sales.
In the second quarter, its worldwide system sales increased by 1%. The company was adversely affected by the sluggish performance in China, with a 20% decline in same store sales. The sluggish operating performance in China was caused by the negative publicity of the avian flu and the poultry supply incident.
For the full year, Yum! Brands, Inc. (NYSE:YUM) expects a mid-single digit EPS decline compared to the previous year. The company felt bullish about the China operations, estimating that its same-store sales in China will recover within the year.
China, with the largest population in the world, remains the most attractive market for consumer goods businesses in the world. The significant exposure of Yum! Brands, Inc. (NYSE:YUM) to the large and growing Chinese consumer market will definitely benefit the company in the long run. At the current price, Yum! Brands offers investors a 1.90% dividend yield.
My Foolish take
Among the three companies, I like McDonald’s and Yum! Brands. McDonald’s owns a global network of local family restaurants while Yum! Brands has significant exposures to the Chinese consumer market. Indeed, both of these companies, with their global footprints, will deliver decent returns for patient shareholders in the long run.
Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide and McDonald’s. The Motley Fool owns shares of McDonald’s. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Which Quick Service Restaurants Is a Good Buy Now? originally appeared on Fool.com is written by Anh HOANG.
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