Starbucks Corporation (SBUX)vsShake Shack Inc (SHAK)
SBUX
Starbucks Corporation
$104.14
+1.01%
CONSUMER CYCLICAL · Cap: $118.51B
SHAK
Shake Shack Inc
$63.05
-0.24%
CONSUMER CYCLICAL · Cap: $2.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 2480% more annual revenue ($38.47B vs $1.49B). SBUX leads profitability with a 3.9% profit margin vs 2.8%. SBUX appears more attractively valued with a PEG of 1.28. SHAK earns a higher WallStSmart Score of 51/100 (C-).
SBUX
Buy51
out of 100
Grade: C-
SHAK
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.9%
Fair Value
$126.84
Current Price
$104.14
$22.70 discount
Margin of Safety
+28.1%
Fair Value
$135.04
Current Price
$63.05
$71.99 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Earnings expanding 32.6% YoY
Earnings expanding 28.7% YoY
Areas to Watch
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
ROE of 7.8% — below average capital efficiency
2.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Debt/Equity, Market Cap, EPS Growth. PEG of 1.28 suggests the stock is reasonably priced for its growth.
Bull Case : SHAK
The strongest argument for SHAK centers on EPS Growth. Revenue growth of 14.3% demonstrates continued momentum.
Bear Case : SBUX
The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 80.0x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.
Bear Case : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 58.1x leaves little room for execution misses. Debt-to-equity of 1.78 is elevated, increasing financial risk.
Key Dynamics to Monitor
SHAK carries more volatility with a beta of 1.63 — expect wider price swings.
SHAK is growing revenue faster at 14.3% — sustainability is the question.
SBUX generates stronger free cash flow (92M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SBUX scores higher overall (51/100 vs 51/100). SHAK offers better value entry with a 28.1% 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.
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.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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