WallStSmart

Dutch Bros Inc (BROS)vsStarbucks Corporation (SBUX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 1914% more annual revenue ($37.91B vs $1.88B). SBUX leads profitability with a 6.7% profit margin vs 4.9%. SBUX appears more attractively valued with a PEG of 1.14. BROS earns a higher WallStSmart Score of 57/100 (C).

BROS

Buy

57

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 5.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.07

SBUX

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.5
Piotroski: 5/9Altman Z: 1.32
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BROSUndervalued (+42.4%)

Margin of Safety

+42.4%

Fair Value

$58.67

Current Price

$33.77

$24.90 discount

UndervaluedFair: $58.67Overvalued
SBUXUndervalued (+19.7%)

Margin of Safety

+19.7%

Fair Value

$123.37

Current Price

$105.41

$17.96 discount

UndervaluedFair: $123.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BROS2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
32.5%10/10

Revenue surging 32.5% year-over-year

EPS GrowthGrowth
37.3%8/10

Earnings expanding 37.3% YoY

SBUX4 strengths · Avg: 9.3/10
EPS GrowthGrowth
405.4%10/10

Earnings expanding 405.4% YoY

Debt/EquityHealth
-2.9210/10

Conservative balance sheet, low leverage

Market CapQuality
$118.19B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.01B8/10

Generating 1.0B in free cash flow

Areas to Watch

BROS4 concerns · Avg: 3.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Debt/EquityHealth
1.563/10

Elevated debt levels

P/E RatioValuation
59.6x2/10

Premium valuation, high expectations priced in

SBUX4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

P/E RatioValuation
46.9x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-4.5%2/10

Revenue declined 4.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : BROS

The strongest argument for BROS centers on Revenue Growth, EPS Growth. Revenue growth of 32.5% demonstrates continued momentum.

Bull Case : SBUX

The strongest argument for SBUX centers on EPS Growth, Debt/Equity, Market Cap. PEG of 1.14 suggests the stock is reasonably priced for its growth.

Bear Case : BROS

The primary concerns for BROS are PEG Ratio, Profit Margin, Debt/Equity. A P/E of 59.6x leaves little room for execution misses. Debt-to-equity of 1.56 is elevated, increasing financial risk.

Bear Case : SBUX

The primary concerns for SBUX are Return on Equity, Profit Margin, P/E Ratio. A P/E of 46.9x leaves little room for execution misses.

Key Dynamics to Monitor

BROS profiles as a hypergrowth stock while SBUX is a value play — different risk/reward profiles.

BROS carries more volatility with a beta of 2.31 — expect wider price swings.

BROS is growing revenue faster at 32.5% — sustainability is the question.

SBUX generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

BROS scores higher overall (57/100 vs 51/100) and 32.5% revenue growth. SBUX offers better value entry with a 19.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Dutch Bros Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Dutch Bros Inc. operates and franchises convenience stores. The company is headquartered in Grants Pass, Oregon.

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Starbucks Corporation

CONSUMER CYCLICAL · RESTAURANTS · USA

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.

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