Starbucks Corporation (SBUX)vsYum! Brands Inc (YUM)
SBUX
Starbucks Corporation
$92.55
-3.42%
CONSUMER CYCLICAL · Cap: $105.44B
YUM
Yum! Brands Inc
$156.41
+0.10%
CONSUMER CYCLICAL · Cap: $43.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 359% more annual revenue ($37.70B vs $8.21B). YUM leads profitability with a 19.0% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.58. YUM earns a higher WallStSmart Score of 59/100 (C).
SBUX
Hold39
out of 100
Grade: F
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1114.7%
Fair Value
$8.16
Current Price
$92.55
$84.39 premium
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$156.41
$103.33 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Strong operational efficiency at 31.9%
Earnings expanding 27.7% 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
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 77.1x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
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 0.93 — expect wider price swings.
YUM is growing revenue faster at 6.5% — sustainability is the question.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
YUM scores higher overall (59/100 vs 39/100), backed by strong 19.0% margins. 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.
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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