How Does SBUX Stack Up Against Its Peers?
Here is how Starbucks (SBUX) stacks up against its peers in size, valuation, growth and margin.
- SBUX’s operating margin of 10.5% is strong, lower than most peers – trailing MCD (46.1%).
- SBUX’s revenue growth of 0.6% in the last 12 months is low, lagging MCD, CMG, YUM, QSR, TXRH.
- SBUX’s stock is down 12.8% in last 1 year, and trades at a PE of 35.4; it underperformed MCD, YUM, QSR, TXRH.
As a quick background, Starbucks operates as a roaster, marketer, and retailer of specialty coffee, offering beverages, roasted beans, single-serve, and ready-to-drink products through thousands of global stores.
SBUX stock has fallen meaningfully recently and we currently find it unattractive. This may feel like a caution, and there is significant risk in relying on a single stock. However, there is a huge value to a broader diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index, and achieved returns exceeding 91% since its inception. Risk management is key – consider, what could long-term portfolio performance be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
| SBUX | MCD | CMG | YUM | QSR | TXRH | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 93.3 | 211.5 | 56.0 | 41.5 | 22.6 | 11.1 |
| Revenue ($ Bil) | 36.7 | 26.1 | 11.6 | 7.9 | 9.1 | 5.7 |
| PE Ratio | 35.4 | 25.2 | 36.3 | 29.0 | 26.3 | 25.3 |
| LTM Revenue Growth | 0.6% | 1.2% | 8.6% | 11.3% | 21.8% | 14.6% |
| LTM Operating Margin | 10.5% | 46.1% | 17.3% | 30.8% | 25.8% | 9.2% |
| LTM FCF Margin | 6.1% | 26.5% | 12.7% | 19.4% | 14.9% | 6.6% |
| 12M Market Return | -12.8% | -0.3% | -27.1% | 11.1% | -0.4% | -5.1% |
Why does this matter? SBUX just went down -5% in a day – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell SBUX Stock to see if Starbucks is really a falling knife. Sharp dips often come with rebound opportunities – see how the stock has dipped and recovered in the past through SBUX Dip Buyer Analysis lens.
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- Better Value & Growth: CMG, YUM Lead Starbucks Stock
- Pay Less, Gain More: CMG, YUM Top Starbucks Stock
- Better Value & Growth: YUM, QSR Lead Starbucks Stock
Revenue Growth Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| SBUX | 0.6% | 0.6% | 11.6% | 11.0% |
| MCD | 1.2% | 1.7% | 10.0% | -0.2% |
| CMG | 8.6% | 14.6% | 14.3% | 14.4% |
| YUM | 11.3% | 6.7% | 3.4% | 3.9% |
| QSR | 21.8% | 19.7% | 7.9% | 13.3% |
| TXRH | 14.6% | 16.0% | 15.4% | 15.9% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| SBUX | 10.5% | 14.1% | 15.3% | 13.7% |
| MCD | 46.1% | 45.7% | 46.1% | 44.6% |
| CMG | 17.3% | 17.5% | 16.5% | 14.0% |
| YUM | 30.8% | 31.8% | 32.5% | 31.7% |
| QSR | 25.8% | 27.6% | 30.4% | 31.1% |
| TXRH | 9.2% | 9.6% | 7.6% | 8.0% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| SBUX | 35.4 | 27.5 | 26.7 | 34.9 |
| MCD | 25.2 | 25.3 | 25.5 | 31.4 |
| CMG | 36.3 | 53.8 | 51.3 | 43.0 |
| YUM | 29.0 | 25.5 | 23.0 | 27.6 |
| QSR | 26.3 | 20.4 | 20.5 | 19.7 |
| TXRH | 25.3 | 27.8 | 26.8 | 22.8 |
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.