WallStSmart

El Pollo Loco Holdings Inc (LOCO)vsStarbucks Corporation (SBUX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 7640% more annual revenue ($38.47B vs $497.05M). LOCO leads profitability with a 5.9% profit margin vs 3.9%. LOCO appears more attractively valued with a PEG of 1.16. LOCO earns a higher WallStSmart Score of 67/100 (B-).

LOCO

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 5.5Value: 6.7Quality: 5.5
Piotroski: 6/9Altman Z: 1.55

SBUX

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 5.0Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LOCOUndervalued (+2.4%)

Margin of Safety

+2.4%

Fair Value

$10.97

Current Price

$13.82

$2.85 discount

UndervaluedFair: $10.97Overvalued
SBUXUndervalued (+22.2%)

Margin of Safety

+22.2%

Fair Value

$127.45

Current Price

$95.29

$32.16 discount

UndervaluedFair: $127.45Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LOCO3 strengths · Avg: 8.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
43.3%8/10

Earnings expanding 43.3% YoY

SBUX3 strengths · Avg: 9.0/10
Debt/EquityHealth
-2.8810/10

Conservative balance sheet, low leverage

Market CapQuality
$108.85B9/10

Large-cap with strong market position

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

Areas to Watch

LOCO3 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Market CapQuality
$426.07M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

SBUX4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
72.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : LOCO

The strongest argument for LOCO centers on Price/Book, P/E Ratio, EPS Growth. PEG of 1.16 suggests the stock is reasonably priced for its growth.

Bull 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.

Bear Case : LOCO

The primary concerns for LOCO are Altman Z-Score, Market Cap, Profit Margin.

Bear Case : SBUX

The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 72.9x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

SBUX carries more volatility with a beta of 1.01 — expect wider price swings.

SBUX is growing revenue faster at 8.8% — sustainability is the question.

SBUX generates stronger free cash flow (92M), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LOCO scores higher overall (67/100 vs 51/100). SBUX offers better value entry with a 22.2% 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.

El Pollo Loco Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses and operates quick service restaurants under the name El Pollo Loco. The company is headquartered in Costa Mesa, California.

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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