Arcos Dorados Holdings Inc (ARCO)vsStarbucks Corporation (SBUX)
ARCO
Arcos Dorados Holdings Inc
$8.37
+3.46%
CONSUMER CYCLICAL · Cap: $1.76B
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 706% more annual revenue ($37.70B vs $4.68B). ARCO leads profitability with a 4.5% profit margin vs 3.6%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 60/100 (C).
ARCO
Buy60
out of 100
Grade: C
SBUX
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.4%
Fair Value
$6.87
Current Price
$8.37
$1.50 premium
Margin of Safety
-1135.9%
Fair Value
$8.02
Current Price
$92.70
$84.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 33 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Large-cap with strong market position
Generating 1.3B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
4.5% margin — thin
Weak financial health signals
Earnings declined 56.9%
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, PEG Ratio. Revenue growth of 10.7% 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 Market Cap, Free Cash Flow.
Bear Case : ARCO
The primary concerns for ARCO are Market Cap, Profit Margin, Piotroski F-Score. Debt-to-equity of 2.77 is elevated, increasing financial risk. Thin 4.5% margins leave little buffer for downturns.
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.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 0.93 — expect wider price swings.
ARCO is growing revenue faster at 10.7% — sustainability is the question.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (60/100 vs 39/100) and 10.7% revenue growth. 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.
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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