Arcos Dorados Holdings Inc (ARCO)vsStarbucks Corporation (SBUX)
ARCO
Arcos Dorados Holdings Inc
$7.94
-0.87%
CONSUMER CYCLICAL · Cap: $1.70B
SBUX
Starbucks Corporation
$99.07
+0.33%
CONSUMER CYCLICAL · Cap: $112.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 670% more annual revenue ($38.34B vs $4.98B). SBUX leads profitability with a 5.2% profit margin vs 5.2%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 72/100 (B).
ARCO
Strong Buy72
out of 100
Grade: B
SBUX
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.2%
Fair Value
$11.71
Current Price
$7.94
$3.77 discount
Margin of Safety
+21.2%
Fair Value
$125.82
Current Price
$99.07
$26.75 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 99.3% YoY
Growing faster than its price suggests
Reasonable price relative to book value
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
Grey zone — moderate risk
Smaller company, higher risk/reward
5.2% margin — thin
Elevated debt levels
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 : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 14.3% demonstrates continued momentum. PEG of 0.54 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 : ARCO
The primary concerns for ARCO are Altman Z-Score, Market Cap, Profit Margin. Debt-to-equity of 2.65 is elevated, increasing financial risk.
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.
ARCO is growing revenue faster at 14.3% — 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
ARCO scores higher overall (72/100 vs 51/100) and 14.3% revenue growth. SBUX offers better value entry with a 21.2% margin of safety. Both earn "Strong 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.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
Visit Website →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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