Starbucks Corporation (SBUX) vs Yum! Brands, Inc. (YUM)

Starbucks Corporation and Yum! Brands, Inc. are both Restaurants companies. Starbucks Corporation is the larger, with a market value of $106.5B against $37.8B — 2.8× the size. Yum! Brands, Inc. trades at the lower P/E: 17.3× against 54.5×. Yum! Brands, Inc. grew revenue faster over the last twelve months: 10.3% against 4.49%. Yum! Brands, Inc. has the higher net margin (25.4% vs 5.17%) and the lower return on invested capital (37.6% vs 93.0%). Both pay a dividend; Starbucks Corporation yields more (2.39% vs 2.05%). Across the 22 metrics below, Yum! Brands, Inc. leads on 12 and Starbucks Corporation on 10.

Valuation

Metric SBUX YUM Restaurants median
P/E 54.52 17.33 22.14
P/S 2.82 4.37 0.91
P/B n/m n/m 2.01
Price to free cash flow 29.68 22.71 19.41
EV/EBITDA 25.36 16.91 11.48
EV/Sales 3.07 5.70 1.20
Earnings yield 1.83% 5.77% 2.30%
Free cash flow yield 3.37% 4.40% 3.92%

Profitability

Metric SBUX YUM Restaurants median
Gross margin 67.70% 68.13% 38.77%
Operating margin 7.77% 31.01% 4.30%
Net margin 5.17% 25.42% 1.85%
Free cash flow margin 9.50% 19.25% 3.12%
Return on equity (25.84%) (29.99%) 3.07%
Return on assets 6.40% 28.42% 1.50%
Return on invested capital 92.99% 37.62% 3.14%

Growth

Metric SBUX YUM Restaurants median
Revenue growth (TTM) 4.49% 10.29% 5.16%
EPS growth (last fiscal year) (50.76%) 6.32% —
Revenue growth, 5-year CAGR 9.60% 7.76% 10.57%
Net income growth, 5-year CAGR 14.87% 11.52% 0.00%

Health

Metric SBUX YUM Restaurants median
Debt to equity (1.73) (1.73) 0.10
Current ratio 0.76 0.59 0.81
Net debt to EBITDA 2.68 4.03 0.43

Dividend

Metric SBUX YUM Restaurants median
Dividend yield 2.39% 2.05% 2.32%
Payout ratio 0.63 0.47 0.00

Size

Metric SBUX YUM Restaurants median
Market cap 106.50b 37.80b 482.66m

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