Starbucks Corporation (SBUX) vs Yum China (YUMC)

Starbucks Corporation and Yum China are both Restaurants companies. Starbucks Corporation is the larger, with a market value of $106.5B against $13.8B — 7.7× the size. Yum China trades at the lower P/E: 14.8× against 54.5×. Yum China grew revenue faster over the last twelve months: 8.78% against 4.49%. Yum China has the higher net margin (7.84% vs 5.17%) and the lower return on invested capital (18.0% vs 93.0%). Both pay a dividend; Starbucks Corporation yields more (2.39% vs 1.57%). Across the 22 metrics below, Yum China leads on 15 and Starbucks Corporation on 7.

Valuation

Metric SBUX YUMC Restaurants median
P/E 54.52 14.77 22.14
P/S 2.82 1.13 0.91
P/B n/m 2.32 2.01
Price to free cash flow 29.68 14.98 19.41
EV/EBITDA 25.36 6.93 11.48
EV/Sales 3.07 1.03 1.20
Earnings yield 1.83% 6.77% 2.30%
Free cash flow yield 3.37% 6.67% 3.92%

Profitability

Metric SBUX YUMC Restaurants median
Gross margin 67.70% 22.02% 38.77%
Operating margin 7.77% 11.11% 4.30%
Net margin 5.17% 7.84% 1.85%
Free cash flow margin 9.50% 7.56% 3.12%
Return on equity (25.84%) 15.58% 3.07%
Return on assets 6.40% 8.92% 1.50%
Return on invested capital 92.99% 18.03% 3.14%

Growth

Metric SBUX YUMC Restaurants median
Revenue growth (TTM) 4.49% 8.78% 5.16%
EPS growth (last fiscal year) (50.76%) 7.73% —
Revenue growth, 5-year CAGR 9.60% 7.38% 10.57%
Net income growth, 5-year CAGR 14.87% 3.45% 0.00%

Health

Metric SBUX YUMC Restaurants median
Debt to equity (1.73) 0.02 0.10
Current ratio 0.76 0.96 0.81
Net debt to EBITDA 2.68 (0.75) 0.43

Dividend

Metric SBUX YUMC Restaurants median
Dividend yield 2.39% 1.57% 2.32%
Payout ratio 0.63 0.28 0.00

Size

Metric SBUX YUMC Restaurants median
Market cap 106.50b 13.80b 482.66m

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