Starbucks Corporation (SBUX)vsTexas Roadhouse Inc (TXRH)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
TXRH
Texas Roadhouse Inc
$169.08
+0.69%
CONSUMER CYCLICAL · Cap: $11.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 541% more annual revenue ($37.70B vs $5.88B). TXRH leads profitability with a 6.9% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.53. TXRH earns a higher WallStSmart Score of 49/100 (D+).
SBUX
Hold39
out of 100
Grade: F
TXRH
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1135.9%
Fair Value
$8.02
Current Price
$92.70
$84.68 premium
Margin of Safety
-342.1%
Fair Value
$41.48
Current Price
$169.08
$127.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
3.1% revenue growth
6.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : TXRH
The strongest argument for TXRH centers on Altman Z-Score, Return on Equity.
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.
Bear Case : TXRH
The primary concerns for TXRH are PEG Ratio, P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 0.93 — expect wider price swings.
SBUX is growing revenue faster at 5.5% — 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
TXRH scores higher overall (49/100 vs 39/100). Both earn "Hold" 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.
Texas Roadhouse Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Texas Roadhouse, Inc., operates casual restaurants in the United States and internationally. The company is headquartered in Louisville, Kentucky.
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