Brinker International Inc (EAT)vsStarbucks Corporation (SBUX)
EAT
Brinker International Inc
$147.11
-2.96%
CONSUMER CYCLICAL · Cap: $6.54B
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 563% more annual revenue ($37.70B vs $5.69B). EAT leads profitability with a 8.0% profit margin vs 3.6%. EAT appears more attractively valued with a PEG of 0.89. EAT earns a higher WallStSmart Score of 61/100 (C+).
EAT
Buy61
out of 100
Grade: C+
SBUX
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.3%
Fair Value
$219.83
Current Price
$147.11
$72.72 discount
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
Growing faster than its price suggests
Attractively priced relative to earnings
Large-cap with strong market position
Generating 1.3B in free cash flow
Areas to Watch
Trading at 16.9x book value
ROE of 1.8% — below average capital efficiency
8.0% margin — thin
Elevated debt levels
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 : EAT
The strongest argument for EAT centers on PEG Ratio, P/E Ratio. PEG of 0.89 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 : EAT
The primary concerns for EAT are Price/Book, Return on Equity, Profit Margin. Debt-to-equity of 4.65 is elevated, increasing financial risk.
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
EAT carries more volatility with a beta of 1.36 — expect wider price swings.
EAT is growing revenue faster at 6.9% — 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
EAT scores higher overall (61/100 vs 39/100). 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.
Brinker International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Brinker International, Inc. owns, develops, operates and franchises casual dining restaurants in the United States and internationally. The company is headquartered in Dallas, Texas.
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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