Starbucks Corporation (SBUX)vsYum! Brands Inc (YUM)
SBUX
Starbucks Corporation
$104.97
+1.55%
CONSUMER CYCLICAL · Cap: $118.51B
YUM
Yum! Brands Inc
$147.68
-0.75%
CONSUMER CYCLICAL · Cap: $41.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 341% more annual revenue ($38.47B vs $8.72B). YUM leads profitability with a 25.4% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.28. YUM earns a higher WallStSmart Score of 65/100 (C+).
SBUX
Buy51
out of 100
Grade: C-
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.9%
Fair Value
$126.84
Current Price
$104.97
$21.87 discount
Margin of Safety
-79.7%
Fair Value
$88.51
Current Price
$147.68
$59.17 premium
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
Strong operational efficiency at 32.2%
Earnings expanding 131.6% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
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
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Distress zone — elevated risk
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 : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.2%. Revenue growth of 12.3% 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 : YUM
The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
SBUX profiles as a value stock while YUM is a mature play — different risk/reward profiles.
SBUX carries more volatility with a beta of 0.97 — expect wider price swings.
YUM is growing revenue faster at 12.3% — sustainability is the question.
YUM generates stronger free cash flow (341M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 51/100), backed by strong 25.4% margins and 12.3% revenue growth. SBUX offers better value entry with a 21.9% 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.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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