WallStSmart

Brinker International Inc (EAT)vsStarbucks Corporation (SBUX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 569% more annual revenue ($38.34B vs $5.73B). EAT leads profitability with a 8.1% profit margin vs 5.2%. SBUX appears more attractively valued with a PEG of 1.28. EAT earns a higher WallStSmart Score of 57/100 (C).

EAT

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 5.0Quality: 4.5
Piotroski: 5/9Altman Z: 2.63

SBUX

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EAT.

SBUXUndervalued (+21.6%)

Margin of Safety

+21.6%

Fair Value

$126.36

Current Price

$105.16

$21.20 discount

UndervaluedFair: $126.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EAT1 strengths · Avg: 10.0/10
Return on EquityProfitability
114.0%10/10

Every $100 of equity generates 114 in profit

SBUX3 strengths · Avg: 9.7/10
EPS GrowthGrowth
85.7%10/10

Earnings expanding 85.7% YoY

Debt/EquityHealth
-2.8810/10

Conservative balance sheet, low leverage

Market CapQuality
$119.67B9/10

Large-cap with strong market position

Areas to Watch

EAT4 concerns · Avg: 2.8/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Price/BookValuation
23.8x2/10

Trading at 23.8x book value

Debt/EquityHealth
4.311/10

Elevated debt levels

SBUX4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
60.7x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : EAT

The strongest argument for EAT centers on Return on Equity.

Bull Case : SBUX

The strongest argument for SBUX centers on EPS Growth, Debt/Equity, Market Cap. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bear Case : EAT

The primary concerns for EAT are PEG Ratio, Revenue Growth, Price/Book. Debt-to-equity of 4.31 is elevated, increasing financial risk.

Bear Case : SBUX

The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 60.7x leaves little room for execution misses.

Key Dynamics to Monitor

EAT carries more volatility with a beta of 1.25 — expect wider price swings.

EAT is growing revenue faster at 3.2% — sustainability is the question.

EAT generates stronger free cash flow (181M), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EAT scores higher overall (57/100 vs 51/100). SBUX offers better value entry with a 21.6% 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.

Brinker International Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Brinker International, Inc. owns, develops, operates and franchises casual dining restaurants in the United States and internationally. The company is headquartered in Dallas, Texas.

Visit Website →

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.

Want to dig deeper into these stocks?