Starbucks Corporation (SBUX)vsShake Shack Inc (SHAK)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
SHAK
Shake Shack Inc
$89.50
-0.60%
CONSUMER CYCLICAL · Cap: $3.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 2509% more annual revenue ($37.70B vs $1.45B). SBUX leads profitability with a 3.6% profit margin vs 3.2%. SBUX appears more attractively valued with a PEG of 1.53. SHAK earns a higher WallStSmart Score of 50/100 (D+).
SBUX
Hold39
out of 100
Grade: F
SHAK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1135.9%
Fair Value
$8.02
Current Price
$92.70
$84.68 premium
Margin of Safety
-90.2%
Fair Value
$51.01
Current Price
$89.50
$38.49 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Revenue surging 21.9% year-over-year
Earnings expanding 28.7% YoY
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
3.2% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : SHAK
The strongest argument for SHAK centers on Revenue Growth, EPS Growth. Revenue growth of 21.9% demonstrates continued momentum.
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.
Bear Case : SHAK
The primary concerns for SHAK are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 82.6x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
SBUX profiles as a value stock while SHAK is a growth play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.77 — expect wider price swings.
SHAK is growing revenue faster at 21.9% — sustainability is the question.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
SHAK scores higher overall (50/100 vs 39/100) and 21.9% revenue growth. Both earn "Hold" 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.
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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