El Pollo Loco Holdings Inc (LOCO)vsStarbucks Corporation (SBUX)
LOCO
El Pollo Loco Holdings Inc
$15.18
+0.80%
CONSUMER CYCLICAL · Cap: $456.83M
SBUX
Starbucks Corporation
$98.74
-0.48%
CONSUMER CYCLICAL · Cap: $112.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 7556% more annual revenue ($38.34B vs $500.79M). LOCO leads profitability with a 7.0% profit margin vs 5.2%. LOCO appears more attractively valued with a PEG of 1.16. LOCO earns a higher WallStSmart Score of 65/100 (C+).
LOCO
Buy65
out of 100
Grade: C+
SBUX
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.3%
Fair Value
$13.43
Current Price
$15.18
$1.75 discount
Margin of Safety
+21.2%
Fair Value
$125.82
Current Price
$98.74
$27.08 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Attractively priced relative to earnings
Earnings expanding 85.7% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.4B in free cash flow
Areas to Watch
3.0% revenue growth
Distress zone — elevated risk
Smaller company, higher risk/reward
7.0% margin — thin
ROE of 0.0% — below average capital efficiency
5.2% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : LOCO
The strongest argument for LOCO centers on Price/Book, EPS Growth, P/E Ratio. PEG of 1.16 suggests the stock is reasonably priced for its growth.
Bull Case : SBUX
The strongest argument for SBUX centers on EPS Growth, Debt/Equity, Market Cap. PEG of 1.19 suggests the stock is reasonably priced for its growth.
Bear Case : LOCO
The primary concerns for LOCO are Revenue Growth, Altman Z-Score, Market Cap.
Bear Case : SBUX
The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 57.4x leaves little room for execution misses.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 0.96 — expect wider price swings.
LOCO is growing revenue faster at 3.0% — sustainability is the question.
SBUX generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LOCO scores higher overall (65/100 vs 51/100). SBUX offers better value entry with a 21.2% 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.
El Pollo Loco Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses and operates quick service restaurants under the name El Pollo Loco. The company is headquartered in Costa Mesa, California.
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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