First Watch Restaurant Group Inc (FWRG)vsStarbucks Corporation (SBUX)
FWRG
First Watch Restaurant Group Inc
$11.27
-1.66%
CONSUMER CYCLICAL · Cap: $700.64M
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 2984% more annual revenue ($37.70B vs $1.22B). SBUX leads profitability with a 3.6% profit margin vs 1.6%. FWRG trades at a lower P/E of 37.0x. FWRG earns a higher WallStSmart Score of 56/100 (C).
FWRG
Buy56
out of 100
Grade: C
SBUX
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-14.3%
Fair Value
$14.51
Current Price
$11.27
$3.24 premium
Margin of Safety
-1135.9%
Fair Value
$8.02
Current Price
$92.70
$84.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Revenue surging 20.2% year-over-year
Earnings expanding 22.9% YoY
Large-cap with strong market position
Generating 1.3B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 3.2% — below average capital efficiency
1.6% margin — thin
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : FWRG
The strongest argument for FWRG centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 20.2% demonstrates continued momentum.
Bull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bear Case : FWRG
The primary concerns for FWRG are P/E Ratio, Market Cap, Return on Equity. Debt-to-equity of 1.62 is elevated, increasing financial risk. Thin 1.6% margins leave little buffer for downturns.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 78.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
FWRG profiles as a growth stock while SBUX is a value play — different risk/reward profiles.
SBUX carries more volatility with a beta of 0.93 — expect wider price swings.
FWRG is growing revenue faster at 20.2% — sustainability is the question.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
FWRG scores higher overall (56/100 vs 39/100) and 20.2% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
First Watch Restaurant Group Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
First Watch Restaurant Group Inc (FWRG) is a leading entity in the fast-casual dining landscape, focusing on breakfast, brunch, and lunch with an emphasis on health-conscious, fresh, and high-quality ingredients. Established in 1983, the company has developed a dedicated customer following through its innovative menu that evolves with culinary trends. First Watch's commitment to outstanding customer service and a distinctive dining experience is complemented by its strategic expansion into new markets, laying the foundation for sustainable growth and enhanced shareholder value in the competitive restaurant industry.
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.
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