Starbucks Corporation (SBUX) vs Texas Roadhouse, Inc. (TXRH)

Starbucks Corporation and Texas Roadhouse, Inc. are both Restaurants companies. Starbucks Corporation is the larger, with a market value of $110.4B against $11.2B — 9.8× the size. Texas Roadhouse, Inc. trades at the lower P/E: 26.9× against 56.0×. Texas Roadhouse, Inc. grew revenue faster over the last twelve months: 9.89% against 4.49%. Texas Roadhouse, Inc. has the higher net margin (6.63% vs 5.17%) and the lower return on invested capital (21.1% vs 93.0%). Both pay a dividend; Starbucks Corporation yields more (2.54% vs 1.74%). Across the 22 metrics below, Texas Roadhouse, Inc. leads on 15 and Starbucks Corporation on 7.

Valuation

Metric SBUX TXRH Restaurants median
P/E 56.05 26.86 24.26
P/S 2.90 1.77 0.92
P/B n/m 6.99 2.01
Price to free cash flow 30.51 25.23 20.49
EV/EBITDA 26.01 15.52 11.76
EV/Sales 3.15 1.76 1.24
Earnings yield 1.78% 3.72% 2.07%
Free cash flow yield 3.28% 3.96% 3.58%

Profitability

Metric SBUX TXRH Restaurants median
Gross margin 67.70% 15.69% 38.77%
Operating margin 7.77% 7.75% 4.30%
Net margin 5.17% 6.63% 1.85%
Free cash flow margin 9.50% 7.02% 3.12%
Return on equity (25.84%) 27.13% 3.72%
Return on assets 6.40% 11.93% 1.50%
Return on invested capital 92.99% 21.14% 3.14%

Growth

Metric SBUX TXRH Restaurants median
Revenue growth (TTM) 4.49% 9.89% 5.66%
EPS growth (last fiscal year) (50.76%) (5.72%) (7.75%)
Revenue growth, 5-year CAGR 9.60% 19.64% 10.57%
Net income growth, 5-year CAGR 14.87% 66.97% 0.00%

Health

Metric SBUX TXRH Restaurants median
Debt to equity (1.73) 0.03 0.10
Current ratio 0.76 0.46 0.77
Net debt to EBITDA 2.68 (0.20) 0.43

Dividend

Metric SBUX TXRH Restaurants median
Dividend yield 2.54% 1.74% 1.97%
Payout ratio 1.43 0.47 0.42

Size

Metric SBUX TXRH Restaurants median
Market cap 110.44b 11.22b 493.91m

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