Starbucks Corporation (SBUX)vsShake Shack Inc (SHAK)
SBUX
Starbucks Corporation
$98.74
-0.48%
CONSUMER CYCLICAL · Cap: $112.56B
SHAK
Shake Shack Inc
$63.51
-0.23%
CONSUMER CYCLICAL · Cap: $2.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 2370% more annual revenue ($38.34B vs $1.55B). SBUX leads profitability with a 5.2% profit margin vs 2.6%. SBUX appears more attractively valued with a PEG of 1.19. SBUX earns a higher WallStSmart Score of 51/100 (C-).
SBUX
Buy51
out of 100
Grade: C-
SHAK
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.2%
Fair Value
$125.82
Current Price
$98.74
$27.08 discount
Margin of Safety
+30.1%
Fair Value
$138.90
Current Price
$63.51
$75.40 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 85.7% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.4B in free cash flow
17.2% revenue growth
Areas to Watch
ROE of 0.0% — below average capital efficiency
5.2% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
ROE of 7.8% — below average capital efficiency
2.6% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : SHAK
The strongest argument for SHAK centers on Revenue Growth. Revenue growth of 17.2% demonstrates continued momentum.
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.
Bear Case : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, PEG Ratio. A P/E of 70.8x leaves little room for execution misses. Thin 2.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
SBUX profiles as a value stock while SHAK is a growth play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.66 — expect wider price swings.
SHAK is growing revenue faster at 17.2% — sustainability is the question.
SBUX generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
SBUX scores higher overall (51/100 vs 42/100). SHAK offers better value entry with a 30.1% margin of safety. 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.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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